1. Clear and insightful advice
P.O. Box 2169 +31 (0)50 211 0000
9704 CD Groningen info@vidend.nl
The Netherlands www.vidend.nl
Dutch tax incentive for expats
30% ruling
The 30% ruling is a tax incentive for foreign employees working in the Netherlands (expatriates). If all conditions for the
30% ruling are met and the 30% ruling is granted by the Dutch Tax Authorities, the employer is allowed to grant the
employee a tax free allowance up to a maximum of 30% of his gross taxable salary (excluding the 30% remuneration).
The 30% ruling is a compensation for so called extraterritorial costs (such as double housing costs, travel expenses, etc.)
and when granted, it is not required to retain documentary evidence regarding the actual extraterritorial costs.
Criteria
 Incoming employee
An employee that is seconded to the Netherlands or is recruited from abroad and working for an employer liable to
withhold Dutch wage tax can be eligible for the 30% ruling.
 Specific expertise
The employee must have specific expertise that is scarcely available on the Dutch labour market. The specific expertise is
based on a (fixed) salary norm only: € 35,000 per year*, excluding 30% remuneration.
* different rules apply for PhD Non-taxable items will not be taken into account. This salary norm must be met for the entire period the 30% ruling is
students/holders, young granted. As soon as an employee does not longer meet this norm, the 30% ruling will expire.
professionals up to 30 years old and
In limited situations it is required to proof the scarcity of specific expertise on the Dutch labour market, in which case
scientists and research workers at
further information needs to be provided to the Dutch Tax Authorities, concerning:
subsidized establishments
- Level of education of the employee;
- Relevant working experience of the employee;
- Salary level in the Netherlands in relation to the salary level in the employee’s country of origin.
Disclaimer
This document supports Vidend’s marketing of professional services, and is not written tax advice directed at the
particular facts and circumstances of any person. If you are interested in the subject of this document we encourage
you to contact us or an independent tax advisor to discuss the potential application to your particular situation.

2. Dutch tax incentive for expats
30% ruling
 Cross-border workers
Only cross border employees who live for at least 16 out of 24 months, before they start their employment activities in
the Netherlands, outside 150 km of the Dutch border can apply for the 30% ruling.
Application
Steps
1. The employer and the employee need to contractually agree on the 30% ruling in the contract of employment.
The employment contract should be updated to include the following articles regarding the 30% ruling. If the
contract has already been signed, then the articles can be stated on a separate letter that can be attached to the
existing contract as an addendum.
Once granted, the 30% ruling needs 2. The employer and the employee gather the information and documents needed for the filing of the application for
the 30% ruling.
to be implemented in the salary
administration to effectuate the
Information needed for 30% application
benefit.
- full details of the employer including company address and Dutch wage tax number;
It's not allowed to split the gross
- full details of the employee, including address;
salary mentioned in the - the Dutch tax number so-called burgerservicenummer (BSN) or SoFi-nummer;
employment agreement in a taxable - copy passport of the employee;
part of 70% and a non-taxable part - a copy of the residence permit and work permit (if applicable);
of 30%. - the curriculum vitae of the employee;
- a copy of the employment contract, including the addendum;
Instead the gross salary must be - a power of attorney signed and dated by a representative of the employer;
- a power of attorney signed and dated by the employee;
reduced to 70% on top of which a
- if the employee does NOT have a Knowledge Migrant Visa, then the employer should provide a statement
tax free remuneration of 30% can
confirming the specialist expertise of the employee with respect to the specific position in the
be paid.
Netherlands.
Consequence is that all the rights
3. The application is filed with the Dutch tax authorities on behalf of employer and employee.
based on the gross salary will be
reduced too like pension and social 4. The Dutch tax authorities will make a formal decision on the application within 6-12 weeks.
security.
Clear and insightful advice
P.O. Box 2169 +31 (0) 50 211 0000
9704 CD Groningen info@vidend.nl
The Netherlands www.vidend.nl

3. Dutch tax incentive for expats
30% ruling
Application period
The 30% ruling is applicable for a maximum period of 8 years, starting on the first day of employment by the employer.
Rules reducing application period
 Periods of early stay / employment during the last 25 years are deducted from the maximum application period.
The entered employee will not have worked in the Netherlands if he worked in the country for a maximum of
twenty days in every calendar year for the period of 25 years.
 The Dutch Tax authorities can check after 5 years whether the conditions regarding scarcity and specific expertise
are still met or not.
 If the joint request (employer and employee) is not submitted within 4 months after the start of the
employment, the 30% ruling will apply as of the first day of the month following the month in which the request
was made.
Benefit
Wit ho ut 3 0 % ruling Wit h 3 0 % ruling T a x s a v ings
A greed package 100.000 A greed package 100.000 With 30% ruling 70.600
Less: tax free allo wance (30%) 30.000 Less: witho ut 30% ruling 55.000
Taxable wage 100.000 Taxable wage 70.000
B enefit 15 .6 0 0
Less: wage tax 45.000 Less: wage tax 29.400
Net wage 5 5 .0 0 0 Net wage 40.600
A dd back: tax free allo wance 30.000
Net co mpensatio n 7 0 .6 0 0
For any further specific information regarding the 30% ruling or a request for assistance
to apply for this ruling, please contact Rutger Albronda.
T:+31 50 211 0000 / +31 6 27 425 109 | E: ralbronda@vidend.nl