30% ruling Netherlands: your complete 2026 checklist and benefit guide

The 30% ruling is one of the most valuable tax benefits available to international employees in the Netherlands, and to the employers who hire them. It allows qualifying highly skilled migrants to receive up to 30% of their gross salary free of Dutch income tax. In 2026, new salary thresholds and a universal income cap apply, and a rate reduction follows in 2027. This cornerstone guide consolidates and updates our earlier 30% ruling Netherlands coverage into one resource: eligibility checklist, benefits, application steps, and every change confirmed for 2026 and beyond.

What is the 30% ruling in the Netherlands?

The 30% ruling Netherlands, also called the 30% facility or the expat scheme, is a tax relief scheme for employees recruited from abroad. It allows employers to pay up to 30% of a qualifying foreign employee’s gross salary as a tax-free allowance. In 2026, the maximum tax-free amount reaches €78,600 per year.

The Dutch government introduced the facility to attract specialists with skills that are scarce in the Dutch labour market. The tax-free allowance compensates for what the Dutch Tax Administration (Belastingdienst) calls “extraterritorial costs“: the genuine extra expenses of relocating, such as higher housing costs, international travel, and building a new life abroad. Instead of tracking every receipt, the employer may treat a flat 30% of salary as reimbursement.

Do you qualify for the 30% ruling in 2026?

To qualify for the 30% ruling in 2026, you must be recruited from abroad, satisfy the 150 km distance rule, earn a minimum taxable salary of €48,013, and work in salaried employment for a Dutch payroll-registered employer. Use the checklist below to assess your position before applying. You qualify for the 30% ruling if:

• You work under an employment contract with an employer registered for Dutch payroll tax. Self-employed professionals only qualify by setting up a Dutch BV and becoming its employee.
• You were recruited from abroad, or transferred within a multinational, and lived outside the Netherlands at the time of hiring.
• You lived more than 150 km from the Dutch border for at least 16 of the 24 months before your first working day.
• You bring specific expertise that is scarce or unavailable in the Dutch labour market.
• You meet the minimum taxable salary set by the Dutch Tax Administration for that year.
• You receive a formal decision (beschikking) granting the ruling, with a maximum term of five years.

You also need several documents: valid identification, a BSN number, your address, your employment contract, your work permit (if required), proof of your foreign residence during the qualifying period, and a CV confirming your specialist skills. Your employer supplies company details, a wage tax number, a signed agreement on the consequences, and a statement explaining why no suitable local candidate was available.

The 150 km distance rule explained

You must have lived more than 150 kilometres from the Dutch border, measured in a straight line, for more than 16 of the 24 months before your first working day in the Netherlands. This effectively excludes residents of Belgium, Luxembourg, and large parts of Germany, France, and the UK. Two exceptions apply. A PhD graduate from a Dutch university can still qualify if they start employment within one year of graduating. Additionally, periods spent in the Netherlands more than 25 years ago are disregarded.

2026 salary thresholds

The 30% ruling 2026 thresholds are €48,013 per year for standard applicants and €36,497 for employees under 30 with a qualifying master’s degree. Both figures apply after the 30% deduction. Scientific researchers at designated institutions and doctors in specialist training (AIOS) are exempt from any salary minimum.

The thresholds apply continuously, not just at entry. Your salary must stay above the norm throughout the five-year term, and both the norm and the cap apply pro rata in part-year situations. The Dutch Tax Administration publishes the full conditions in its wage tax manual (Handboek Loonheffingen, chapter 19.4.1).

Key benefits of the 30% ruling for employees and employers

The 30% ruling supports expats with their transition costs and gives Dutch employers access to global talent. Because 30% of salary is paid tax-free, the employee’s net income rises significantly while the employer’s gross salary costs stay the same.

Benefits for employees

The largest benefit is the direct tax saving. For example, an expat earning €80,000 receives €24,000 tax-free and pays income tax only on €56,000. Compared to a local employee on the same gross salary, that saves roughly €9,000 to €9,500 per year. Check your own situation with our take home pay calculator, which includes the 30% ruling.

Beyond the tax saving, you can exchange a foreign driving licence for a Dutch one without retaking the test. Parents can also receive tax-free reimbursement of international school fees on top of the allowance. Note that the partial non-resident tax status, a former benefit of the ruling, was abolished in 2025. We cover the transition below.

Benefits for employers

Employers can attract highly skilled migrants more easily and offer a competitive net package without raising gross salary costs. The ruling also reduces overall relocation costs, which makes international hiring far more appealing. For companies planning cross-border growth, this works especially well alongside expansion initiatives such as moving operations from the UK into the Dutch market.

How do you apply for the 30% ruling?

The employer files a joint application with the Dutch Tax Administration on behalf of the employee, and both parties sign. Submit within four months of the first working day to apply the benefit retroactively from day one. The Tax Administration typically decides within eight weeks. A later application means the benefit only starts from the month after submission.

1. Confirm eligibility. Verify the salary threshold, the 150km rule, and recruitment from abroad before gathering paperwork.
2. Collect the documents. Signed employment contract, valid passport, proof of prior foreign address (rental agreement, utility bills, or bank statements), and degree certificates if using the under-30 threshold.
3. Submit the joint application. The employer sends the signed form to the Belastingdienst.
4. Receive the decision. The beschikking confirms the start and end date of the ruling.
5. Apply it each payroll period. The 30% tax-free portion then appears on every payslip for the duration of the ruling.

How long does the 30% ruling last?

The 30% ruling lasts a maximum of five years, counted from your first working day in the Netherlands. The ruling lasted ten years before 2012 and eight years until 2019, when the government reduced it to five for all new applications, as confirmed on Government.nl.

Previous periods of Dutch residence or employment within the last 25 years reduce the available duration. For example, an earlier seven-month stay shortens the ruling by seven months. Confirm your exact end date in the decision letter.

You can keep the ruling when you change jobs. The gap between employers must stay under three months, and the new employer must reapply within four months of the new start date. The remaining duration then transfers.

What changed in 2026?

Three changes affect the 30% ruling in 2026. The WNT income cap now applies to every ruling holder, the transition period for partial non-resident status runs out at the end of the year, and the Extraterritorial Costs (ETK) scheme has been narrowed for incoming workers.

• The income cap is now universal. The tax-free allowance only applies to salary up to the public-sector pay norm (WNT): €246,000 in 2025 and €262,000 in 2026. Transitional protection for pre-2023 rulings expired on 31 December 2025, so every holder is now capped at €78,600 tax-free. Employers with high earners should review payroll settings.
• Partial non-resident status ends. This option exempted ruling holders from Dutch tax on foreign substantial interests (Box 2) and savings and investments (Box 3). It was abolished on 1 January 2025. Employees who used the ruling before December 2023 keep it through the end of 2026. From 2027, all holders pay Box 2 and Box 3 tax like regular residents.
• The ETK scheme is narrower. Employers reimbursing actual extraterritorial costs instead of the flat 30% can no longer cover utilities or private phone calls tax-free. The Dutch Tax Plan 2026 confirmed this at Prinsjesdag 2025.

The 30% ruling becomes a 27% ruling in 2027

From 1 January 2027, the maximum tax-free percentage drops from 30% to 27% for employees whose ruling started on or after 1 January 2024. Rulings that started before 2024 keep the full 30% for their entire five-year term under transitional law.

The government initially planned a phased 30-20-10 reduction in the 2024 Tax Plan. After strong opposition from international businesses and the expat community, it reversed the phase-down and settled on the single step to 27%. Salary thresholds will also rise again in 2027, so plan compensation packages for late-2026 hires with extra headroom.

Can you lose the 30% ruling?

Yes, the ruling lapses if your taxable salary falls below the annual minimum, if employment with the employer named in the decision ends, or if you stay out of the Dutch labour market for more than three months between jobs.

Because the salary requirement is continuous, a salary restructuring, reduced hours, or unpaid leave can inadvertently drop an employee below the norm. Advisers such as CROP recommend that employers flag everyone sitting just above the threshold and review levels each year. The ruling is also employer-specific: it covers only wages from the employer named in the decision, so a second job requires its own application.

The 30% ruling and Netherlands work visas

The 30% ruling and the Dutch work permit system work closely together, but they are separate processes. Highly skilled migrants must meet the IND salary thresholds for their HSM permit, which differ from the 30% ruling thresholds. The IND handles the visa; the Belastingdienst handles the ruling. Employers submit both applications independently.

How Octagon supports the 30% ruling and international hiring

Octagon Professionals administers the 30% ruling as part of its end-to-end HR services. As a recognised IND sponsor, Octagon runs the work visa application and also the 30% ruling submission in parallel, which shortens the time between offer acceptance and the first working day. For companies that want to hire in the Netherlands without a local entity, Octagon acts as the legal employer through its Employer of Record service. With 38+ years of international HR experience and a team of 20+ nationalities, we also advise on compensation structuring for internationally mobile employees. For tailored guidance on your specific situation, our consultancy team is ready to help.

The 30% ruling rewards careful planning: meet the thresholds, file on time, and monitor the conditions each year. Octagon exists to empower companies to grow and we also reduce the compliance risks of international hiring, from missed application deadlines to salary norms and payroll errors, and we remove the administrative burden with full transparency. You retain complete control over salary, benefits, and working arrangements while we handle the complexity. Contact us today to get your next international hire working in the Netherlands quickly and compliantly.

Frequently asked questions about the 30% ruling

What are the 2026 salary requirements for the 30% ruling?

In 2026, the minimum taxable salary is €48,013 per year, or €36,497 for employees under 30 with a qualifying master’s degree, both after the 30% deduction. The income cap is €262,000. Researchers at designated institutions are exempt from the threshold.

How do I apply for the 30% ruling in the Netherlands?

Your employer submits a joint, signed application to the Belastingdienst, ideally within four months of your first working day. Include the employment contract, proof of foreign residence, and qualification documents. The decision usually arrives within eight weeks.

Can I keep the 30% ruling when I change jobs?

Yes, with a new application. The new employer must apply within four months of the new start date, and the gap between jobs must stay under three months. The remaining duration transfers.

Does the 30% ruling change in 2027?

Yes. The rate drops to 27% for rulings that started on or after 1 January 2024. Earlier rulings keep 30% for their full term, and salary thresholds will rise further in 2027.