🇳🇱 Netherlands · 30% Ruling

Netherlands 30% Ruling: how it works & what you keep

Qualifying employees recruited from abroad can receive up to 30% of gross salary as a tax-free allowance — taper of 30% / 20% / 10% over a maximum of 60 months.

Status: Active, but being scaled back: the maximum is set to step down (a reduction toward ~27% is legislated for 2027), and prior periods of Dutch residence within the last 25 years reduce the available term.

Estimate your take-home

A rough, illustrative comparison — not tax advice. Figures use 2026 brackets.

Standard rates€47,534take-home / yr · 36.6% effective
With 30% Ruling€55,985take-home / yr · 25.4% effective
Estimated benefit: €8,451/yr (€704/mo)

Estimate only — not tax advice. This applies the regime's headline rule to 2026 brackets and ignores deductions, allowances, your full circumstances, and the 30% Ruling taper/limits. Eligibility is fact-specific and the rules change. Confirm any figure with a qualified tax professional before relying on it.

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How it works

  • Up to 30% of your gross salary is paid as a tax-free allowance, so income tax is calculated on roughly the remaining 70%.
  • The benefit tapers over a maximum 60 months: 30% for months 1–20, 20% for months 21–40, 10% for months 41–60.
  • There is a minimum taxable-salary threshold (~€46,107 in 2025, indexed annually; lower for under-30s with a master's).

Who qualifies

  • Recruited or seconded from abroad into Dutch employment (an actual employment relationship).
  • The 150-km rule: lived more than 150 km from the Dutch border for more than 16 of the 24 months before starting Dutch work.
  • Prior periods of Dutch residence/work in the last 25 years are deducted from the maximum term — long prior residence can reduce or eliminate it.

What to watch

  • Nationality is not the test — prior residence and the recruited-from-abroad condition are.
  • Director-major-shareholders (your own BV) face extra scrutiny on the 'recruited employee' condition.
  • The figures below are an illustrative phase-1 (30%) estimate; the taper and the 2027 reduction mean your real benefit will be lower over time.

Common questions

Is the 30% ruling really 30% off my taxes?

No — it's that up to 30% of gross salary is paid tax-free. Income tax is then computed on the remaining ~70%, which lowers your effective rate rather than cutting your tax bill by a flat 30%.

How long does it last?

A maximum of 60 months, tapering 30% → 20% → 10%. Prior Dutch residence in the last 25 years is deducted from that term.

Not tax advice. HEADING provides informational estimates from 2026 data to illustrate rough take-home differences — not a determination of your eligibility or liability. Special regimes are fact-specific and the rules change. Confirm any position with a qualified tax professional licensed in Netherlands before acting. Source: taxsummaries.pwc.com.

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Netherlands 30% Ruling: how it works & what you keep — HEADING