The Dutch 30% Ruling Explained: Who Can Apply and What Changes in 2027?
For many international professionals moving to the Netherlands, the 30% ruling is one of the most attractive tax benefits available. The scheme helps highly skilled migrants and other qualifying employees reduce their tax burden during their first years of working in the Netherlands. However, significant changes are coming. Starting in 2027, the famous "30% ruling" will no longer provide a 30% tax-free allowance for most new applicants. Understanding the current rules and upcoming changes is essential for both employers and international employees.
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What is the 30% ruling?
The 30% ruling (also known as the Dutch expat scheme) is a tax facility that allows employers to pay part of an employee's salary tax-free as compensation for the additional costs of living and working abroad. Currently, eligible employees can receive up to 30% of their salary tax-free for a maximum period of five years. This often results in a significantly higher net salary compared to employees who do not qualify for the scheme.
Who can apply?
To qualify for the 30% ruling, several conditions must be met:
You are recruited from outside the Netherlands or transferred from abroad.
You possess expertise that is scarce or unavailable on the Dutch labour market.
Your salary meets the minimum salary threshold set by the Dutch Tax Authorities.
You have a valid employment contract with a Dutch employer.
The application is submitted jointly by the employer and employee.
The application must generally be submitted within four months after the employee's first working day in the Netherlands.
Current salary requirements
The Dutch government uses minimum salary thresholds to determine whether an employee qualifies as a highly skilled international professional. Lower salary thresholds apply to employees under 30 who hold a qualifying Master's degree. The exact amounts are indexed annually and may change.
What is changing in 2027?
After years of political discussion, the Dutch government decided to modify the expat scheme.
The tax-free allowance decreases.
From 1 January 2027, the maximum tax-free reimbursement will decrease from 30% to 27% for most new applicants. This effectively turns the current 30% ruling into a 27% ruling.
Higher salary thresholds
In addition to the lower tax-free percentage, the minimum salary requirements will increase.The general salary threshold is expected to increase from approximately €46,107 (2024 level) to €50,436, while the threshold for employees under 30 with a qualifying Master's degree will increase from approximately €35,048 to €38,338. These amounts will continue to be indexed annually.
End of partial foreign taxpayer status
Another important change already introduced in 2025 is the gradual removal of the partial non-resident taxpayer status. This means that many expats can no longer exclude certain foreign assets and investments from Dutch taxation. Transitional arrangements still apply for some employees who already benefited from the scheme before 2024.
Transitional rules
Not everyone will be affected in the same way.
Employees who already received the 30% ruling before 1 January 2024 generally keep the 30% benefit for the remainder of their ruling period.
Employees who started using the ruling during 2024 will move to 27% in 2027, but can generally keep the older salary thresholds.
Employees who start using the ruling from 2025 onwards will be subject to both the 27% rate and the higher salary thresholds from 2027.
Why timing matters
For international professionals considering a move to the Netherlands, timing can make a significant financial difference. Employees who become eligible before future legislative changes may benefit from more favourable transitional arrangements. For employers, understanding these developments is important when recruiting international talent, planning compensation packages, and remaining competitive in the global labour market.
How BlueStone can help
At BlueStone, we support highly skilled migrants and international employers throughout the relocation and employment process. From Dutch employment contracts and payroll administration to IND sponsorship and guidance on applying the 30% ruling, we help make the transition to the Netherlands as smooth as possible.
If you are planning to work in the Netherlands or hire international talent, our specialists can help you understand your eligibility and navigate the latest changes to Dutch immigration and tax regulations.
Contact BlueStone to discover how we can support your move to the Netherlands.
