A salary offer from a Dutch employer can look generous or ordinary depending on one line: whether the 30% ruling applies. It is one of the most talked-about perks for people recruited from abroad, and it is changing. Here is what the 30% ruling in the Netherlands is today, in 2026, and what is scheduled for 2027.
What is the 30% ruling in the Netherlands?
Officially it is the Expat Scheme (30%-regeling, or 30% facility). If a Dutch employer recruits you from abroad for specific expertise that is scarce on the Dutch labour market, it may pay you up to 30% of your salary as a tax-free allowance. The allowance is meant to compensate for the extra costs of living abroad. It lasts up to five years.
The scheme is not automatic and not a right. The employer is not obliged to pay you 30%, so the figure is something you agree in your contract. The Belastingdienst (the tax administration) says the amount may be lower, and you should settle it in advance.
Who qualifies for the 30% ruling in 2026?
Three main conditions.
- Recruited from abroad for specific expertise by an employer in the Netherlands, who applies together with you.
- A minimum salary, not counting the tax-free allowance: more than €48,013 a year in 2026. Under-30s with a Dutch master's degree (or an equivalent foreign degree) need more than €36,497. Researchers at a designated research institution and doctors training as specialists have no salary threshold.
- The 150 km rule. You must have lived more than 150 km (as the crow flies) from the Dutch border for more than 16 of the 24 months before your first working day in the Netherlands.
The distance rule excludes a great many people. Living in Belgium, Luxembourg, or parts of Germany, France or the UK near the border disqualifies you, even if your job is highly specialised. Living in Aruba, Curaçao, Sint Maarten or the Caribbean Netherlands counts as "outside" the Netherlands.
How much is the tax-free allowance worth?
The allowance is capped. In 2026 the maximum tax-free allowance is €78,600, which you reach with a salary of €262,000 or more for a full year. That €262,000 is the cap for top salaries in the public sector (the WNT standard), and since 1 January 2026 it applies to every expat. For part of a year the maximum is calculated in proportion.
Because the allowance is a share of your salary, the benefit grows with pay but only up to that ceiling. At a salary in the middle of the range, the difference in net pay can be large, so the question to ask your employer is not only "do you offer it" but "how much, and is it written in my contract".
If you are weighing an offer and want to see whether you meet the salary, distance and expertise conditions, or you need to know what to ask HR before you sign, Moovy can go through the official criteria with you. The decision itself belongs to the Belastingdienst, and the tax calculation to a tax adviser.
What changes in 2027?
The Dutch government's official page says that in 2025 and 2026 the tax-free allowance stays at a maximum of 30%. From 2027, it is reduced to a maximum of 27%. A higher salary threshold also applies from 2027 for those who start from 2025, but the page does not state the new amount, so check before you sign.
The transition rules, in short:
| When you started | 2025 and 2026 | From 2027 |
|---|---|---|
| Up to 31 December 2023 | 30%, current threshold | 30%, current threshold |
| During 2024 | 30%, current threshold | 27%, current threshold |
| From 1 January 2025 | 30%, current threshold | 27%, new, higher threshold |
If you are about to start, you will probably fall in the last row. That means a 30% allowance now and 27% later, possibly with a higher bar on your salary. Treat the figures as a calendar, not a promise: the scheme has been changed several times in recent years.
How do you apply for the 30% ruling?
The employer and the employee complete the application form together and send it to the Belastingdienst. The tax administration informs you of its decision within eight weeks. If you change employer, check with the new employer whether your decision can stay valid: that is possible if you start within three months of leaving the old job. Submit the application within four months of starting, and the scheme can then apply from your first working day.
Keep your proof of where you lived for the previous 24 months (a lease, a population-register extract, a residence certificate) and, if you claim the lower salary threshold, your degree.
What mistakes cost people the ruling?
- Living too close to the border. The 150 km rule applies even if your expertise is rare.
- Counting the allowance as part of the salary. The threshold is measured without the tax-free allowance. A "gross plus 30%" negotiation that misses the threshold loses the scheme.
- Starting without an agreement in writing. Make sure your contract states the percentage.
- Assuming it lasts five years in all cases. The five years are reduced if you have lived or worked in the Netherlands before, with exceptions: a stay that ended more than 25 years ago, work of less than 20 days a year, or visits of no more than six weeks a year or a single period of three months.
- Forgetting that you are now a Dutch taxpayer. In your first year you file a special return; see taxes in the Netherlands for new residents.
What should you ask HR about the 30% ruling in the Netherlands before you sign?
Turn the official conditions into questions for your employer, in writing if you can.
- Will you apply for the 30% ruling in the Netherlands for me, and will the application be filed together with my contract?
- What percentage will I receive: the full 30%, or a lower one? Is it written in the contract?
- Is the salary I am offered above the threshold, excluding the tax-free allowance?
- What happens to my pay if the decision is refused or arrives late?
- What do you expect from me in terms of proof of my previous residence?
An employer that has used the scheme before will know the answers. If it has not, ask whether a tax adviser handles it.
How is the salary threshold tested?
The threshold of €48,013 (2026) applies to your taxable salary, after the tax-free allowance has been taken out. So the question is not whether your total package is above the threshold, but whether what remains taxable once the allowance is paid is above it. A package that looks comfortable can fail the test if the allowance is set at the full 30%. Ask your employer, or the adviser who files the application, to check this with your real figures before you agree the percentage.
Does the 30% ruling affect your first tax return?
Yes, because you become a resident taxpayer when you settle. The year you arrive you file the special return for people who moved in during the year, and your allowance is handled through your employer's payroll. The Belastingdienst also says that from the 2025 return you can no longer opt for partial foreign tax liability, which used to treat you as a non-resident for boxes 2 and 3 (substantial shareholdings, savings and investments). If you used the scheme before 2024, a transition lets you keep that option until your 2026 return.
Before you sign an offer that relies on the scheme, have a Dutch tax adviser check your eligibility and what it means for your savings and investments: the rules have changed several times and your own history matters. See taxes in the Netherlands for new residents.
Is the 30% ruling the whole story of a Dutch salary?
No. Your pay also depends on hours, the collective agreement and holiday pay; see working in the Netherlands. And it is only one input for the total cost of settling; see cost of living in the Netherlands.