The 30% ruling
Are you a highly skilled migrant planning to work in the Netherlands? If so, you might encounter additional expenses, known as extraterritorial costs. The 30% ruling, a Dutch tax benefit, aims to lighten this burden, thus attracting foreign expertise to the Netherlands.
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What does the ruling entail?
The Dutch 30% ruling, officially known as the "30%-regeling," is a tax benefit that allows employers to grant a tax-free allowance of up to 30% of an employee's gross salary. This ruling is designed to compensate expatriates for the additional costs of living and working in a new country. Initially introduced in 2002, the 30% ruling aims to attract and retain skilled workers by providing a substantial tax benefit during their assignment in the Netherlands.
Changes in 2024
As of the 1st of January 2024, expats who meet the conditions will receive the following benefits:
The first 20 months are 30% tax-free
The following 20 months are 20% tax-free
The last 20 months 10% tax-free
Until the end of 2023, highly skilled migrants received 30% of their annual salary tax-free for five years. This scheme will remain in force for employees who benefited from the scheme in 2023 and before.
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