The ruling

Tax free allowance of 30 percent


The 30% ruling is a tax advantage for incoming employees who are working in the Netherlands. When the appropriate requirements are met, the employer is allowed to grant a tax free allowance amounting to 30 per cent of the salary which is subject to Dutch payroll tax. The consequence is that the taxable part of the salary is reduced to 70% and on top of that the 30% allowance is paid so that the total stays 100%. The tax free allowance is considered as compensation for extra territorial expenses a foreign employee has for working outside their home country. The employer can also reimburse these extra territorial expenses instead, but to be able to do this, the employee will need to supply all receipts to the employer so that they can be checked and then reimbursed. This is obviously a lot of extra work, especially if it needs to be done for multiple employees. It is therefor more common to apply for the 30% ruling. The 30% allowance will be included in the salary in such a way that the costs for the employer will not be higher, while the employee has a higher net salary.

Benefit of our experience with the 30% ruling!

Expatax can assist with the whole application procedure. We are very experienced with the 30% ruling and its application process as we have many companies as clients for who we take care of all the requests on behalf of their employees. We have more than 15 years experience and have filed thousands of applications with a high success rate.

Specific expertise

To qualify for the ruling the expatriate must be an employee who is hired from abroad or transferred by an employer to work in the Netherlands and who has specific expertise that is scarce or absent on the job market in the Netherlands. 

Salary requirement

For the evaluation of whether an entered employee possesses specific expertise that is scarce or absent on the job market in the Netherlands, a minimum salary requirement was introduced on January 1, 2012. This salary requirement replaced the obligation to prove the level of education and relevant work experience.

Minimum required taxable salary (70%):€ 37,743 (which is gross € 53,919)€ 37,296 (which is gross € 53,280)€ 37,000 (which is gross € 52,857)
For employees under the age of 30 who have obtained a master degree at a foreign university the minimum required taxable salary (70%) is€ 28,690 (which is gross € 40,986)€ 28,350 (which is gross € 40,500)€ 28,125 (which is gross € 40,178)

If you conduct scientific research at a specific research institution, you can always use the 30% facility. A salary requirement is not applicable then. 

Tax free allowance can be less than 30%

Since the law requires a minimum taxable salary and doesn’t mention the gross salary and also states that under the 30% ruling a tax free allowance can be paid of up to 30%, it is possible to reduce the tax free allowance to a lower percentage as such that the minimum required taxable salary is met.

Do you have a question about the 30% ruling?

In our Knowledge Base we answered a lot of questions about the 30% ruling. Topics include the conditions, term, application, tax consequences etc.

Other requirements

There are other requirements that need to be met such as the employee having lived a minimum distance of 150 km from the Dutch border beforehand (during at least 16 months in the 24 months before start of work in the Netherlands), whether or not the employee has previously stayed in the Netherlands and there are also specific rules as to whether the ruling can be transferred to a new employer or not.

You have a valid grant for the 30% ruling. The duration is stated on the grant. If you stop working earlier, the 30% ruling will also stop.

An appendix to the employment agreement must be made. It’s not allowed to split the gross salary mentioned in the employment agreement in a taxable part of 70% and a non-taxable part of 30%. Instead the gross salary must be reduced to 70% on top of which a tax free remuneration of 30% can be paid. Consequence is that all the rights based on the gross salary will be reduced too like pension and social security.

Are you eligible for the 30% ruling?

Do our online survey to find out directly if you qualify for the 30% ruling.


If your 30% ruling is granted after the 1st of January 2019 your grant is valid for a maximum of 5 years.

If your 30% ruling was granted between the 1st of January 2012 and the 1st of January 2019 the duration of your grant is a maximum of 8 years. Due to a transitional arrangement, the end date of the grant may change, below you can see what your new end date will be. You will not be issued with a new grant stating this, so it is up to you and your employer to keep track of the new end date.

– End date year on your grant: 2019 or 2020 -> new end date: remains the same as stated on your grant
– End date year on your grant: 2021, 2022 or 2023 -> new end date: 31st of December 2020
– End date year on your grant: 2024 or later -> new end date: the end date on your grant minus 3 years