Dutch budget for 2019: changes in taxation

With the New Year comes the implementation of the Dutch budget for 2019, which includes some changes in taxation.

There have been VAT increases, most notably on groceries, the impact of which has been offset by a decrease in income tax rates. As a result, the impact of this increase to citizens should be negligible. International employees, particularly those compensated through the ‘balance sheet approach’ would be wise to assess their compensation packages to ensure the new tax legislation has been correctly implemented.

The 30% Ruling
Minimum Income Requirements

The 2019 budget also sees amendments to the functionality of the 30% Ruling. The first change is to the minimum salary required to be eligible for the scheme. For 2019 the minimum taxable income required is €37,743.

However, as was the case in previous years, there are groups that qualify for whom this figure does not apply. Those under 30, who hold certain Master’s degrees qualify for the lower minimum requirement of €28,690. Additionally, some applicable doctors and scientists continue to be exempt from meeting any salary requirements in 2019.


The new budget also sees a reduction in the duration of the 30% ruling. The duration of the ruling has been reduced from 8 to 5 years, effective from the 1st of January, 2019. In principle, this reduction applies to all taxpayers, including those who have been initially granted the ruling for up to 8 years. However, grandfathering rules do apply, which result in the following:

1. Rulings that are set to expire in 2019 or 2020 will remain unaffected.
2. Rulings that are set to expire in 2021, 2022, or 2023 will expire on December 31, 2020
3. Rulings that are set expire in or after 2024 will face a reduction in duration of the ruling by 3 years.

Immigration: Salary Requirements 2019

Under Dutch immigration law, minimum salary requirements apply. The 2019 salary criteria are as follows:

1. Highly skilled migrants 30 years or older: €4,500 gross per month
2. Highly skilled migrants under 30 years: €3,299 gross per month
3. Reduced salary criterion: €2,364 gross per month
4. European Blue Card:  €5,272 gross per month.

Note that these amounts are excluding 8% vacation allowance.

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