30% of gross salary received tax-free for highly skilled expats (2026 only—drops to 27% in 2027)
The 30% ruling in 2026: 30% of your gross salary is TAX-FREE (drops to 27% from 2027). Minimum salary: €48,013 (€36,497 if under 30 with master's). Maximum salary eligible: €262,000 cap. Example: €80,000 salary → €24,000 tax-free → save ~€11,880/year. Must apply within 4 months of starting work. 150km distance rule + 16/24 months requirement. Lasts 5 years max. Scientific researchers exempt from salary minimum.
The Netherlands 30% Ruling (30%-regeling) is a Dutch tax benefit that allows employers to pay 30% of an expat's salary completely tax-free as reimbursement for extraterritorial costs. For a €80,000 salary, this means €24,000 is tax-free, saving approximately €11,880 in taxes annually. The ruling lasts up to 5 years, but major changes are coming: the benefit stays at 30% for 2026, but drops to 27% from January 1, 2027 for those who started using it in 2024 or later. The salary threshold for 2026 is €48,013 (or €36,497 for employees under 30 with a master's degree). A new salary cap of €262,000 (Balkenende norm) applies to all employees from 2026, meaning the maximum tax-free amount is €78,600 per year. To qualify, you must have lived more than 150km from the Dutch border for at least 16 of the 24 months before starting work in the Netherlands, and you must apply within 4 months of your first work day.
| Taxable Income | Tax Rate |
|---|---|
| Standard salary requirement | €48,013 minimum taxable salary |
| Under 30 with master's degree | €36,497 minimum taxable salary |
| Salary cap (Balkenende norm) | €262,000 maximum eligible salary |
| Scientific researchers | No minimum salary required |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
The tax savings depend on your salary. At €60,000: 30% (€18,000) is tax-free, saving approximately €8,930/year. At €80,000: 30% (€24,000) is tax-free, saving approximately €11,880/year. At €100,000: 30% (€30,000) is tax-free, saving approximately €14,850/year. At €262,000 (the cap): 30% (€78,600) is tax-free, saving approximately €38,900/year. The actual savings depend on your marginal tax rate (35.75-49.5%).
To qualify for the 30% ruling in 2026, you must meet ALL of these requirements: (1) Hired from abroad by a Dutch employer or foreign employer with Dutch payroll, (2) Lived more than 150km from the Dutch border for at least 16 of the 24 months before your first work day, (3) Have specific expertise scarce in the Dutch labor market (demonstrated by meeting the €48,013 salary threshold, or €36,497 if under 30 with a master's degree), (4) Apply jointly with your employer within 4 months of your first work day. Scientific researchers, employees in scientific education, and doctors in training are exempt from the salary requirement.
The 150km rule requires that you lived more than 150 kilometers from the Dutch border for at least 16 of the 24 months immediately before your first work day in the Netherlands. This is measured as the crow flies from your residential address to the nearest Dutch border point. Common qualifying countries include: UK, Ireland, France (Paris and south), Spain, Italy, Poland, Czech Republic, most of Germany. Border regions of Belgium and Germany may NOT qualify if you lived within 150km. You must prove this with rental contracts, utility bills, or official residence registration documents.
For 2026, the minimum TAXABLE salary (after the 30% exclusion is applied) must be at least €48,013 annually. This means your GROSS salary must be approximately €68,590 or higher (€68,590 × 70% = €48,013). If you are under 30 years old AND hold a master's degree, the threshold is lower: €36,497 taxable salary, which requires a gross salary of approximately €52,139. Scientific researchers, employees working in scientific education, and medical doctors in training are exempt from any salary minimum.
From January 1, 2026, the 30% ruling is capped at the Balkenende norm of €262,000. This means that even if you earn more than €262,000, only the first €262,000 is eligible for the 30% tax-free allowance. The maximum tax-free benefit in 2026 is therefore €78,600 per year (30% of €262,000). Any salary above €262,000 is fully taxable. This cap applies to ALL employees using the 30% ruling from 2026 onwards, including those who started before 2026.
You and your employer must jointly apply to the Dutch Tax and Customs Administration (Belastingdienst) within 4 months of your first work day. Required documents: (1) Completed application form (available on Belastingdienst website), (2) Copy of your employment contract, (3) Valid passport or photo ID, (4) Proof of residence abroad for 16/24 months (rental contracts, utility bills, official registration), (5) Proof of address in the Netherlands, (6) Diploma or CV demonstrating specific expertise (if applicable). The decision typically takes 2-4 months. If approved, the ruling is applied retroactively from your first work day. If you apply AFTER the 4-month deadline, the ruling only applies from the first day of the month in which you applied—you lose the retroactive benefit.
Major changes take effect from January 1, 2027: (1) The tax-free percentage drops from 30% to 27% for employees who started using the ruling in 2024 or later. (2) Employees who started before 2024 keep the full 30% for their remaining years. (3) The salary cap of €262,000 (Balkenende norm) continues. (4) The transitional period for partial non-resident tax status ends on December 31, 2026—this was a special status allowing 30% ruling users to be taxed as non-residents for Box 2 and Box 3 income. From 2027, all 30% ruling users are taxed as residents for all income.
Generally NO. If you lived in the Netherlands at any time during the 16 of the 24 months before your new employment starts, you do NOT qualify. The 150km distance rule is strict. However, exceptions exist: (1) If you previously worked in the Netherlands under a different 30% ruling that has now ended, you can apply again for a new employment contract with the same or different employer (but the total duration across all rulings cannot exceed 5 years). (2) If your previous Netherlands employment was brief and you have since lived abroad for 16+ months, you may qualify again. The Belastingdienst reviews each case individually.
NO. The 30% ruling ONLY applies to employees who are hired from abroad by an employer liable to withhold Dutch payroll tax. Freelancers, self-employed individuals (zzp'ers), and independent contractors do NOT qualify. You must have an employment contract (arbeidscontract) with a Dutch employer or a foreign employer with a Dutch payroll presence. Business owners, directors of their own BV, and contractors working via their own company are not eligible.
If your salary increases: The 30% ruling continues to apply to your new salary, up to the €262,000 cap. Any salary above €262,000 is fully taxable. If your salary decreases: The ruling continues AS LONG AS your taxable salary (70% of gross) remains above the threshold (€48,013 or €36,497). If your salary drops below the threshold, you lose the ruling permanently—you cannot regain it even if your salary later increases. Exception: Temporary salary reductions due to parental leave, sick leave, or short-time work schemes do not cause you to lose the ruling.
Last Updated: March 2026