The 30% ruling, explained simply
It's the tax benefit everyone mentions when you move to the Netherlands — but few explain clearly. Here's the plain version.
What it is
The 30% ruling is a tax advantage for employees recruited from abroad with specific expertise. In short, a portion of your gross salary can be paid as a tax-free allowance, meant to offset the extra costs of relocating ("extraterritorial costs"). The result is a meaningfully higher net salary for the period you qualify.
Who can qualify
- You're hired from outside the Netherlands (and lived far enough away before starting).
- Your role requires specific expertise that's scarce on the Dutch labour market — usually shown via a minimum salary threshold.
- Your employer applies for it together with you, typically soon after you start.
What it's worth
The benefit applies for a limited number of years and is subject to salary thresholds and a cap. The exact percentage, duration and cap have been under reform in recent years, so the figure you read in an old article may no longer be accurate.
How to apply
It's an employer-led application to the Belastingdienst (the Dutch tax office). Many recognised sponsors are familiar with the process; ask during your offer stage whether they support 30%-ruling applications.