Attract Top Talent: Unlock the 30% Ruling in the Netherlands
A competitive edge for your business
The Dutch 30% ruling is a powerful, yet often misunderstood, tool for attracting and retaining highly skilled international professionals. It’s more than just a tax break; it’s a strategic advantage that can significantly impact your ability to secure top talent in today’s competitive labor market. We help employers navigate this complex system, ensuring maximum impact and compliance while understanding the evolving landscape of Dutch tax regulations.
Nathalie Crivello
Client Solution Manager
nc@em-g.nl
+31 (0)20 765 7520
Client Solution Manager
nc@em-g.nl
+31 (0)20 765 7520
A Win-Win for Employers and Employees
Why Choose the 30% Ruling?
For your employees, it translates to a substantial increase in their net income. Think: more disposable income for housing, education, and enjoying the vibrant lifestyle that the Netherlands offers. For you, it translates to a competitive edge in attracting and retaining talent who might otherwise choose other destinations. It’s about demonstrating that you value your employees and offer a compelling package beyond just salary.Here’s the breakdown:
- Significant Tax Savings: Up to 30% of salary is tax-free, a tangible benefit that resonates with international professionals.
- Increased Net Income: A clear and compelling incentive to choose your company over competitors.
- Simplified Compliance: We handle the complexities of Dutch tax law, so you can focus on your core business.
- Demonstrates Value: Signals to potential hires that you invest in their financial well-being.
- Strategic Retention: Keeps your best talent happy and committed to your organization.
Navigating the Evolving Landscape: Understanding Changes to the 30% Ruling
The Dutch tax system is dynamic, and the 30% ruling is no exception. It’s crucial to understand that changes are underway, impacting the long-term viability of this benefit. We keep you informed and help you plan for the future.- Scaling Back: The 30% ruling is being gradually scaled back over a five-year period. During the first 20 months, it remains at 30%. It then reduces to 20% for the next 20 months, and finally to 10% for the final 20 months.
- Transitional Rules: Employees already benefiting from the ruling as of December 2023 will be subject to transitional rules, protecting them from immediate changes.
- WNT-Norm Cap: As of 2024, the tax-free allowance is capped at 30% of the public service pay (“WNT-norm”), currently set at €233,000.
Future Outlook: We provide clear guidance on how these changes affect your business and help you develop strategies to mitigate any potential impact.
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Who Qualifies for 30% ruling?
A Detailed Look at Eligibility Criteria
Securing the 30% ruling for your international hires requires meeting specific criteria. We conduct thorough assessments to ensure eligibility and maximize the benefit.Here’s a breakdown of the key requirements:
- Recruitment from Abroad: The employee must be recruited from outside the Netherlands. This means they should not have lived or worked in the Netherlands (other than for study or internship) at the time of establishing their employment contract.
- Salary Threshold: The employee’s taxable wage (after applying the 30% ruling) must exceed a certain threshold. This varies depending on education and profession:
- General Requirement: Above €46,107 (figures for 2024).
- Masters Degree: Above €35,048 (for employees under 30 with a qualifying Masters degree).
- Scientists: No salary requirement for scientists at recognized universities or institutions.
- Recent Residency Outside the Netherlands: The employee must have lived more than 150 km from the Dutch border for more than 16 of the 24 months preceding their employment in the Netherlands.
- Wage Tax Agent: A wage tax agent must be present in the Netherlands to handle administrative requirements.
- Previous Stays & Employment: Previous periods of staying or working in the Netherlands within the 25 years prior to their current employment may reduce the maximum period for the 30% ruling. However, certain short visits can be disregarded.
- Partial Non-Resident Status: Employees who qualify for the 30% ruling can also benefit from partial non-resident status, exempting certain income (e.g., bank accounts, dividends) from Dutch taxation. Please note that this status will be abolished as of 1 January 2025.
Bron: Belastingdienst
Beyond the Ruling: Additional Benefits & Considerations
The Dutch tax system offers additional benefits that can complement the 30% ruling, enhancing your overall compensation package.- Tax-Free Reimbursement of International School Fees: Under specific conditions, you can reimburse international school fees tax-free.
- Exchange of Foreign Driving License: Employees with the 30% ruling certificate can exchange their foreign driving license for a Dutch one without needing to take theory and practical tests (provided the foreign license is still valid).
Ready to Attract Top Talent?
Let Us Guide You.
Navigating the complexities of Dutch tax law can be daunting. We provide clear advice, efficient implementation, and ongoing support to ensure you maximize the benefits of the 30% ruling.
Avoid Delays, Stay Compliant
& Secure Top Talent.
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Nathalie Crivello
Client Solution Manager | MIM Certified
We are on a mission to help your business grow through hiring international talent.
Give us a call +31 (0)20 765 7520
or send us an email at
info@executivemobility-group.com