Advantages of the 30% Ruling System in the Netherlands

The 30% ruling is a tax exemption for highly skilled migrants who are working or coming to work in the Netherlands. They have to be hired from abroad by a Dutch company.


The ruling makes it possible for employers to give their highly skilled migrants 30% of their salary tax-free. This means that payroll taxes are due over only 70% of their Dutch gross salary. This is only possible when certain conditions are met. The ruling is meant as compensation for the highly skilled migrants to compensate for costs that have incurred when they were relocated to the Netherlands.

Conditions to claim the ruling

  • The employee must work for an employer who is registered with the Dutch tax authorities;

  • The employee and employer have to agree in writing that the 30% ruling is applicable and has to be carried out by both parties;

  • The employee has to be recruited or transferred from abroad;

  • The employee did not reside within 150 kilometres from the Dutch border for the last 18 out of 24 months at the time of the actual hiring;

  • The employee must earn a minimum gross salary of € 37.743 (2019)

    • Employees Younger than 30 with a master's degree must earn a gross salary of at least approx. € 28.000;

    • For doctors in training and scientifically educated trainees, no minimum salary is applicable.

  • The expertise of the highly skilled migrant has to be scarcely available in the Netherlands.

More benefits regarding the 30% ruling

The main benefit of the Dutch 30% ruling is the fact that an employer can pay an employee 30% of his gross salary tax-free. The 30% ruling, however, has more benefits:

  • When the 30% ruling is applicable, the employee can choose to be a partial non-resident. With the partial non-resident status you don't have to pay income tax in Box 2 and 3 of the Dutch income tax;

  • The law in the Netherlands requires foreigners living in the Netherlands to redo the test for your driving license. When the 30% ruling is applicable, it is possible to obtain a Dutch driving license without doing any tests.

Duration of the tax exemption

Employees can benefit from the 30% ruling for a maximum period of 5 years. Periods of earlier employment, within the last 25 years, have to be deducted from the 5 years. It is important to apply as early as possible in order to gain the maximum advantage of the ruling.


Before the 1st of January 2019 the 30% ruling latest for a period of 8 years. 30% rulings which were granted before the 1st of January 2019 may be applicable to transitional law.

Applying for the 30 percent ruling in the Netherlands

A mutual request is needed for the application for the 30% ruling. Therefore the employer and employee have to file a request to the Dutch tax authorities within four months after the start of the employment according to the contract. When the application is filed within four months after the start of the employment, the ruling will apply from the first day of the start. When the application is filed after 4 months, the ruling will apply on the first day of the next month after the application was filed.

INCO’s experts can assess and request the 30% rule Netherlands for both employers and employees. Applying on time guarantees the employee and the employer to be able to apply the 30% ruling from the first working day. Our accounting team makes sure that requests are handled efficiently and quickly by cooperating with the Tax Authorities.

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