The 30% Ruling in the Netherlands: 2025/2026 Guide

What is the 30% Ruling?

The 30% reimbursement ruling (known in Dutch as the 30%-regeling) is the most famous tax advantage for expats in the Netherlands. In short, it allows your employer to pay you 30% of your gross salary tax-free.

This is not a permanent tax rate, but a tax exemption. This means you only pay tax on 70% of your gross income, significantly boosting your net take-home pay. It is designed to compensate for the “extraterritorial costs” of moving to a new country.

Important Updates for 2025 & 2026

There has been a lot of political debate regarding this rule. Here is the confirmed status for 2025:

• The Rate: For 2025 and 2026, the tax-free allowance remains at a flat 30% for the full 5-year duration (the proposed “30/20/10 phase-out” has been scrapped for these years).
• The Future (2027): From January 1, 2027, the rate is expected to drop to a flat 27%.
• Box 3 Change (Crucial): As of January 1, 2025, new applicants can no longer opt for “partial non-resident taxpayer status”. This means you will be taxed on your worldwide savings and investments (Box 3) just like any other Dutch resident.

Transitional Rule: If you were already using the 30% ruling before 2024, you retain the Box 3 tax exemption until the end of 2026.

Step 1: Check your Eligibility

Not every expat qualifies. To apply, you must meet strict conditions:

1. Recruited from Abroad: You must have been living more than 150km from the Dutch border for at least 16 out of the 24 months prior to your first working day in the Netherlands.
2. Employment: You must be on the payroll of a Dutch employer (or a foreign employer with a permanent establishment here).
3. Salary Threshold (2025): You must earn more than the required minimum. The “taxable salary” (the 70% part) must meet the threshold. effectively meaning your gross salary must be higher.

Note: Scientific researchers and medical specialists in training are often exempt from the salary threshold.

Step 2: Gather Required Documents

You generally cannot apply alone; your employer must file the request with the Belastingdienst (Tax Office). You will need to provide them with:

• Copy of valid passport or ID.
• Signed employment contract.
• Proof of residence abroad (e.g., utility bills, bank statements, or de-registration from your previous country) to prove you lived >150km away.
• Your BSN (Citizen Service Number).

Step 3: The Application Process

Your employer (or their tax advisor) submits the “Application Income Tax: 30% facility” to the Belastingdienst.

Timeline: If you apply within 4 months of starting your job, the ruling applies retroactively to your start date. If you apply later, it only applies from the first day of the month following the application. The decision typically takes 6 to 10 weeks.

SEO Key Phrases & Definitions

For those researching this topic, here are the most relevant terms used in 2025:

• 30% Ruling Salary Criteria 2025: The specific income requirements set by the tax office annually.
• Extraterritorial Costs: Expenses like moving, double housing, and cost of living differences that the ruling is meant to cover.
• Partial Non-Resident Taxpayer: The old status allowing expats to avoid tax on savings (Box 3). Abolished for new cases in 2025.
• Recruited from Abroad: The strict condition that you must not have lived within 150km of the Dutch border before hiring.