What is the 30% Ruling?
The 30% ruling is a Dutch tax advantage for highly skilled migrants recruited from abroad. It allows employers to pay up to 30% of the employee’s salary as a tax-free allowance, designed to cover the extra costs of living in a foreign country.
Key Changes in 2026
The Dutch government has implemented significant changes to the 30% ruling. The planned step-down structure (30%, then 20%, then 10%) has been scrapped. Instead, the tax-free allowance stays at a maximum of 30% through 2026 and drops to a flat 27% from 1 January 2027, when a higher salary threshold also applies. Employees who were already using the ruling in 2023 keep 30% for the rest of their term.
Two other changes matter in 2026. The allowance can only be paid on salary up to €262,000 a year (the WNT norm), and since 1 January 2026 this cap applies to all expats. The partial non-resident tax status (partiële buitenlandse belastingplicht) was abolished from 1 January 2025; employees who used the 30% ruling before 2024 can keep it through 2026 under transitional rules.
Eligibility Requirements
To qualify, the employee must be recruited from abroad (living more than 150km from the Dutch border), possess specific expertise that is scarce in the Netherlands, and meet the minimum salary threshold (€48,013 in 2026, or €36,497 for employees under 30 with a Master’s degree).
Application Process
The application is submitted jointly by employer and employee to the Tax Administration (Belastingdienst). Processing typically takes 2-4 months. It’s crucial to apply within 4 months of the start date to ensure retroactive application.
