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The 30% ruling
Are you a highly skilled migrant planning to work in the Netherlands? Then you might encounter additional expenses, known as extraterritorial costs. The 30% ruling, a Dutch tax benefit, aims to lighten this burden and attract foreign expertise to the country.
What does the ruling entail?
The Dutch 30% ruling, officially known as the "30 %-regeling," is a tax advantage 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.
BlueStone Solutions manages the 30% application as part of our services. After the authorities approve it, we facilitate the tax-free exchange of up to 30% of your employee's salary.
Changes in 2024
The ruling has changed since the 1st of January 2024. Expats who meet the conditions will get the following:
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. Employees who benefited from the scheme in 2023 and before will still receive the 30% tax-free allowance for five years.
