The 30% percent ruling is a facility aimed at attracting scarcely available professionals to the Netherlands. Under this tax ruling, a person hired from outside the Netherlands can receive 30% of his or her salary free of tax. This tax free reimbursement is to cover for unspecified expenses to relocate and settle in the Netherlands. To qualify for the 30% ruling, one needs to meet certain conditions, which are set-out in this section. 

Conditions 30% ruling

The 30% tax free reimbursement for so-called extraterritorial expenses should be applied at source at the salary administration of the employer. An employer is allowed to apply the 30% ruling after it has received a written approval from the Dutch tax office to do so. A jointly filed application for the 30 percent ruling is required to obtain such an approval. 

In order to be eligible for the 30% ruling, you need meet a number of criteria listed below.

  • The applicant for the 30% ruling should be employed by a company registered in the Netherlands.
  • For the 30% ruling the employee must have been recruited or seconded from outside the Netherlands (the employment should have been agreed prior to the arrival of the employee in the Netherlands).
  • 24 Months prior to first working day of employee, he or she should have lived more than 16 months outside the Netherlands
  • The employee should have been recruited from a perimeter of 150-km from the Dutch border (note that employee recruited in some parts of England, France and Germany are excluded on the basis of the 150-km perimeter condition).
  • Prior to the first working day, the recruited employee should have resided outside the 150-km perimeter from the Dutch border for at least 16 out of the 24 months.
  • A gross salary (taxable income) of at least € 37,743 (in 2019) before applying the 30% extraterritorial reimbursement (i.e. aforementioned amount should always be taxed).
  • For employees younger than 30 years and with a MSc qualification (possibly obtained in the Netherlands) a reduced income norm of € 28,690 (in 2019) applies.
  • For qualified scientists and medical doctors nog income norm applies.

Please note that the sign date on your employment contract should be set before your arrival date. The maximum validity of the 30 percent ruling is 5 years as per 2019. This duration may be reduced if the employee resided in the Netherlands in the past 25 years. If you received your 30 percent ruling before 1 January 2019, a transition period may apply.  See under Transition period 30% ruling.