The 30% ruling (30%-regeling or 30% facility) is a Dutch tax benefit for employees recruited from abroad who possess skills that are scarce in the Dutch labour market. When you qualify, your employer can pay up to 30% of your salary as a tax-free allowance to compensate for the extra costs of living and working abroad. This effectively means a significant portion of your income is untaxed, making the Netherlands considerably more attractive financially for qualifying expats.
What the 30% ruling actually does
To be clear about the mechanics: the ruling does not reduce your tax rate. Instead, your employer treats 30% of your agreed salary as a tax-free reimbursement for "extraterritorial costs" — the extra expenses associated with relocating to and living in a foreign country. The remaining 70% is your taxable salary, which is subject to normal Dutch income tax. The net effect on take-home pay is substantial, particularly at higher income levels where the top tax rate of 49.5% applies.
Who qualifies?
To qualify for the 30% ruling, you must meet all of the following conditions. You must have been recruited from outside the Netherlands, meaning you were living more than 150 kilometres from the Dutch border for at least 16 of the 24 months immediately before your first day of employment in the Netherlands. You must have specific expertise that is scarce on the Dutch labour market — in practice, this is demonstrated by meeting a minimum salary threshold rather than a skills test. In 2026, the minimum taxable salary threshold is approximately €46,107 gross per year (or approximately €35,048 for employees under 30 with a master's degree). Your employment must be with a Dutch employer or a Dutch branch of an international employer.
Duration
The 30% ruling was historically granted for eight years. Following legislative changes that came into effect in 2024 and 2025, the ruling is now tapered: the first 20 months allow the full 30% exemption; the next 20 months allow 20%; the final 20 months allow 10%. The total period is still 60 months (five years). If you held the ruling before these changes, transitional arrangements may apply — check with a Dutch tax adviser for your specific situation.
How to apply
Your employer applies on your behalf via the Dutch Tax Authority (Belastingdienst). You and your employer jointly submit a request using the form "Verzoek loonheffingen 30%-regeling." The application must be submitted within four months of your start date to be backdated to day one. If you miss the four-month window, the ruling can still be granted but only from the month after the application is submitted. Applications take around six weeks to process.
Additional benefits
Beyond the tax-free allowance, the 30% ruling comes with two additional benefits. First, you may opt to be treated as a "partial non-resident taxpayer," which means certain foreign assets (such as savings and investments held outside the Netherlands) are not subject to Dutch Box 3 wealth tax. Second, you can exchange your foreign driving licence for a Dutch one without taking the Dutch driving test — a minor but practical perk.
What changed recently
The Dutch government has made several adjustments to the 30% ruling in recent years in response to political pressure about the scale of the benefit. The tapering introduced in 2024–2025 reduced the average benefit compared to the previous flat five-year structure. There have also been discussions in the Dutch parliament about further tightening the rules, so if you are planning a move to the Netherlands partly on the basis of this tax advantage, it is worth getting current legal advice rather than relying solely on this guide.
Getting help
For most people, the application process itself is handled by the employer's HR or payroll department. However, if you want to optimise your tax situation — particularly around the partial non-resident taxpayer option — a Dutch expat tax specialist is worth consulting. Firms like Expatax, KPMG Meijburg, and various smaller specialist advisers are familiar with this area.