30% tax ruling
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THE 30% TAX RULING IN THE NETHERLANDS
The 30% ruling is a tax ruling for expats who were hired from abroad for a position in the Netherlands. If a number of conditions are met, you will only be subject to tax on 70% of your salary, the remaining 30% will be paid out tax free as compensation for expenses you may incur by working outside your home country.
HOW TO APPLY FOR THE 30% TAX RULING?
Our advisors know exactly how to help you with all your questions about the 30% tax ruling. Broadstreet is specialized in providing financial services for expats. Our tax experts will be happy to take care of the complete application process for you from our easy to reach office in Central Amsterdam or in an online meeting.
DURATION OF THE 30% RULING
The 30% ruling will be valid for a maximum period of 5 years, if granted. Time spent in the Netherlands previously (last 25 years), will be reduced from the duration of the 30%-ruling. Short visits and stays in the Netherlands previously may not impact the duration of the 30%-ruling if it is below the yearly threshold.
REQUIREMENTS FOR THE 30% TAX RULING
- The employee must be transferred from abroad or must be recruited from abroad;
- The employee works for an employer who is registered with the Dutch tax office and pays payroll tax;
- Employer and employee must agree in writing that the 30% tax ruling is applicable;
- The employee did not reside within 150 km from the Dutch border for the last 18 out of 24 months at the time of hiring;
- The employee’s salary is at least EUR 46,107 per annum.
Employee younger than 30 years
For an employee younger than 30 years with a qualified master degree, a lower minimum salary applies:
- The employee’s salary is at least EUR 35,048 per annum;
A Non-Dutch master degree may have to be evaluated by Nuffic before it is considered a qualified master degree according to Dutch law.
SALARY REQUIREMENT FOR THE 30% RULING AS PER JANUARY 2024
The minimum salary requirements for the 30% ruling as per January 2024 are:
- €46,107 (2023: € 41,954)
- For an employee younger than 30 years with a qualified master degree: €35,048 (2023: € 31,891)
PROPOSED CHANGES 30% RULING
In 2022 the government announced in the “Voorjaarsnota” (Spring memorandum 2022) to introduce a salary threshold comparable to the maximum salary in the “WNT” (Act on the Standardization of Top Income) as of 2024. For 2024 this maximum salary is € 233,000. It means that the 30%-ruling is only applicable on a gross salary up to € 233,000. The 30%-ruling is not applicable on the part of the salary that exceeds € 233,000. A transition period of 2 years (until 1-1-2026) applies to 30%-rulings that were granted before 2024.
Another amendment changed the 30% ruling into a 30/20/10% ruling over the maximum duration of 60 months (5 years). The first 20 months a 30% tax free allowance applies, the second 20 months a 20% tax free allowance applies and the final 20 months a 10% tax free allowance applies.
FREQUENTLY ASKED QUESTIONS ABOUT THE 30% RULING
The 30% ruling is a hot topic among expats. Every expat has heard about it, but yet only a few know what it actually entails. At Broadstreet, we receive questions about this subject on a daily basis. We have gathered the most frequently asked questions we have had the past couple of months.
No. The salary requirement under the 30%-ruling is a minimum taxable wages of € 46,107. As long as your taxable salary is more than € 46,107, the ruling is applicable on income exceeding € 46,107, with a maximum of 30% of the taxable income of course.
Yes, you can switch employers and continue the 30%-ruling on your new employment. You and your new employer will need to submit a new application for the 30%-ruling. The gap between your previous job and the new one cannot be more than 3 months.
No, unfortunately not. The employer and the employee need to apply jointly. If the employer does not want to apply for the 30%-ruling, the employee is not entitled to receive this benefit.
It depends whether or not you were considered as a Dutch tax resident during your studies. If you came to the Netherlands only for your studies and the center of your social and economic life was outside the Netherlands, then you may not be considered Dutch resident. In this situation you may be eligible for the 30%-ruling if you meet the other requirements for the 30%-ruling.
If you came to the Netherlands for a PhD, and have secured a job after finishing the PhD, you will also be considered as being hired from outside.
Yes, that is possible. The years spent in the Netherlands will be deducted from the maximum duration of the 30%-ruling (5 years). For example if you have lived in the Netherlands for 3 years before, and you come back to the Netherlands again, you will be eligible for the 30%-ruling for 3 more years.
Your partner cannot benefit from the 30% ruling on income. However, under the 30% ruling you can choose to be exempted for box 3 ( tax on your savings and investments) and on Box 2 (income from substantial interest). If you and your partner are fiscal partners, your partner can allocate his/her savings/income from substantial interest to you and then these savings are not taxed either.
Yes, that is possible. The 30%-ruling needs to be submitted within 4 months after the commencement date of your contract in order to receive the ruling retroactively. If the 4 months period has passed, you can still apply for the 30% ruling, but the commencement date will then be the month following the submission date.
At the end of the year the tax office will check if the employee has met all the requirements. If it turns out that for example the minimum salary requirement was not met, the 30%-ruling was applied incorrectly. As a consequence, the employer will face an additional tax assessment for payroll tax. The employer is allowed to pass on the costs to the employee.
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