30% Ruling 2026: What Changes for Expats in the Netherlands?

What Is the 30% Ruling?

The 30% ruling (30%-regeling) is a Dutch tax benefit for employees recruited from abroad to work in the Netherlands. It allows the employer to pay up to 30% of the employee’s gross salary as a tax-free allowance intended to cover so-called extraterritorial costs: the extra expenses of living in a foreign country, such as double housing costs, language courses and cost-of-living differences.

The facility is one of the most generous expat tax schemes in Europe and plays an important role in attracting international talent to the Dutch knowledge economy.

Eligibility Requirements (2025-2026)

Specific Expertise

The employee must bring specific expertise that is scarce on the Dutch labour market. The Belastingdienst uses a salary test as a proxy: the taxable annual salary must be at least €46,660 in 2025. For employees under 30 who hold a qualifying master’s degree, a reduced threshold of €35,468 applies. Scientific researchers and doctors in training are exempt from the salary requirement entirely.

Recruited from Abroad

In the 24 months before starting employment in the Netherlands, the employee must have lived more than 150 kilometres from the Dutch border. This prevents Dutch nationals who briefly lived abroad from claiming the benefit.

Maximum Duration: 5 Years

Since 2024 the maximum duration of the ruling for new applications has been reduced from 8 to 5 years. Previous periods of employment or residence in the Netherlands within the last 25 years are deducted from this maximum. Transitional rules protect employees who were already using the ruling before 2024.

Key Changes: Step-Down and Future Reduction

Step-Down Percentages since 2024

For new rulings granted from 2024 onward, the tax-free percentage decreases over time:

The previously announced step-down (30% → 20% → 10%) has been reversed. Instead, the ruling will be reduced to a flat 27% from 1 January 2027. This means the allowance remains constant throughout the term. Transitional rules protect employees whose ruling started before 2024.

Practical Impact on Your Net Salary

Consider an employee with a gross annual salary of €80,000. Under the full 30% ruling, only €56,000 is taxable. In the first bracket (37.48%), the tax saving is approximately €8,990 per year. Under the step-down model, this advantage shrinks to around €5,900 in years 3-4 and €2,950 in year 5.

These numbers matter when negotiating a relocation package. Employers sometimes compensate for the step-down by adjusting the gross salary, but this is not guaranteed.

Partial Non-Resident Taxpayer Status

Employees with the 30% ruling can elect partial non-resident taxpayer status in their tax return. This means that in box 2 (substantial interest) and box 3 (savings and investments) you are only taxed on Dutch assets, effectively exempting foreign wealth from Dutch taxation. This option is being phased out under new legislation but remains available for current users during the transition.

Changing Employers

If you switch employers during the ruling period, you can transfer the remaining term to the new employer provided you start the new role within three months of leaving the previous one. Both employers must apply for the ruling with the Belastingdienst.

How Mojka Finance Can Help

Navigating the 30% ruling — especially with the recent and upcoming changes — can be complex. At Mojka Finance in Rotterdam we advise expats on eligibility, application procedures and the tax return implications of the ruling. Whether you have just arrived or are midway through your term, we ensure you benefit optimally. Get in touch for a personal consultation.