30% Ruling and Salary Requirements
The Dutch 30% ruling can make your compensation offer more attractive.
Here’s what HR teams need to know.
The 30% ruling is a Dutch tax advantage for highly skilled migrants relocating to the Netherlands. It allows employers to pay up to 30% of an employee’s gross salary tax-free to cover so-called extraterritorial costs—such as relocation expenses or cost-of-living adjustments.
You apply jointly with the employee to the Dutch Tax Administration. Once approved, you can pay a portion of the salary tax-free, or reimburse actual extraterritorial costs. The default option is applying the tax-free percentage via payroll. You must review eligibility annually.
Yes. Academic researchers and doctors in training are exempt from meeting the standard income requirement. They must still meet the Dutch minimum wage.
From 1 January 2027, major changes will affect employers:
Box 2 & 3 changes: From 2025, 30% ruling users can no longer opt for partial foreign tax liability
Reduced tax-free percentage: 30% → 27%
Increased income threshold:
≥30: €50,436/year
<30 with Master’s: €38,388/year
Phased benefit (for new rulings after Jan 2024):
30% (first 20 months) → 20% → 10%
Salary cap: Ruling limited to the Balkenende norm (approx. €233K/year)
Rulings issued before 1 Jan 2024: unchanged (30% for 5 years)
Already approved before Dec 2023: not subject to step-down or salary cap
Using partial foreign tax liability in 2023? You may continue until 2026
The 30% ruling is designed for non-EU employees with specific expertise not readily available in the Dutch labour market. Key criteria include:
The application is submitted within 4 months of starting work
The employee is hired or transferred from abroad
They have lived 150+ km outside the Netherlands for 16 of the 24 months before hiring
They meet the minimum income threshold
To qualify in 2024:
Recent graduates / Orientation year: €2,801/month These amounts are adjusted annually and must exclude vacation pay or irregular bonuses.
≥30 years old: €5,331/month gross
<30 years old with a Master’s: €3,909/month
These amounts are updated yearly and must be stated clearly in the employment contract
To qualify for the 30% ruling in 2025, the gross monthly salary (excluding holiday allowance) must meet one of the following:
- €5,688 – Highly skilled migrants aged 30 or older
- €4,171 – Highly skilled migrants under 30
- €2,989 – Recent graduates or orientation year
- €5,688 – EU Blue Card holders
- €4,551 – EU Blue Card holders within 3 years of graduation
These amounts are updated yearly and must be stated clearly in the employment contract.
A new application is required. The age-based salary threshold will be reassessed based on the employee’s age at the time of the new contract, unless the reduced salary rule still applies.
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