for entrepreneurs and corporates
30% tax ruling expats 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.
We assist (HR department of) employers and individual expatriates in drafting the request for application of 30% tax rule. Expat Service ensures that all conditions 30% ruling are met. Submit your case to us free of charge, without obligation, and we will inform you what we can do for you.
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 percent 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.
Eligibility requirements 30% ruling:
- 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 must be transferred from abroad or must be recruited abroad
- The employee did not reside within 150km from the Dutch border for the last 18 out of 24 months at the time of hiring
- the employee’s salary meets the minimum requirements (€38,347 in 2020)
- The employee needs to have expertise that is scarcely available in the Netherlands
Less strict rules apply for PhD and Master’s graduates younger than 30 years:
- the minimum salary requirement is €29,149.
- if the PhD was completed in the Netherlands, the requirement of ‘being recruited from abroad’ does not have to be met if the candidate is hired within a year of completing his or her studies.
If you need help to submit the application or if you have any problems after the 30% rule has been applied, our specialists can help you with all your questions regarding the 30% rule and related tax questions.
Our office assists expatriates and (HR departments of) employers in applying for 30% schemes. We ensure that the application is submitted correctly and that you will not receive a later refusal from the Dutch Tax Authorities (Belastingdienst).
- Checking requirements and request the 30% ruling
- Appeal procedure in case of rejection 30% rule used
- Tax brief upon application of the 30% ruling and upon termination of the ruling
Unfortunately, we often experience that the 30% rule is wrongly applied or wrongly rejected by the Dutch tax administration (Belastingdienst). This can lead to very unfortunate tax consequences. Make sure that your request for the 30% ruling is submitted via Expat Service.
The 30% ruling will be valid for 8 years, if granted. Any time spent in the Netherlands previously, will be reduced from the period of 8 years. However, the Dutch government has announced they intend to reduce the maximum duration to 5 years, effective as of the first of January 2019. The impact for those who are currently benefiting the 30% ruling, is not clear yet.
Leave no tax benefits unused, use Expat Service to optimise your taxes. We can file all type of tax returns, i.e. both private income tax returns and tax returns for entrepreneurs. We submit your tax returns digitally to the Dutch Tax Authorities (Belastingdienst) using the appropriate C form, M form or the regular P form.
We will inform you about all tax regulations, including the Dutch 30% rule, if you have any questions. The application of the 30% ruling for you or your staff will be completely taken out of your hands. We also solve the correction of mistakes in the application of the 30% ruling.