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The 30% Ruling in the Netherlands

Tax Benefits for Expats Living and Working in the Netherlands

The 30% ruling is a valuable tax advantage designed specifically for highly skilled foreign employees relocating to the Netherlands for work. If eligible, expats can receive up to 30% of their gross salary tax-free, significantly increasing net income while offering employers a cost-efficient way to attract international talent.

At Nexpat, we help individuals and companies successfully apply for and benefit from the 30% ruling—whether you’re coming to the Netherlands for employment or planning to start your own business.

What Is the Purpose of the 30% Ruling?

Moving to the Netherlands involves additional living costs, such as housing, travel, and education. These are called extraterritorial expenses. While employers can normally reimburse these tax-free, the administrative process is complex.

The 30% ruling simplifies everything. Instead of providing individual reimbursements, employers may offer a fixed tax-free allowance equal to 30% of your gross salary, significantly easing the financial impact of relocating.

Additional Benefits of the 30% Ruling

Beyond the tax-free allowance, the 30% ruling unlocks several other expat-friendly advantages:

✅ Partial Non-Resident Status & Wealth Tax Exemption

Under the 30% ruling, you can opt for partial non-resident tax status, which offers a significant tax advantage: you’re treated as a non-resident for certain types of income, including Box 2 (substantial interest) and Box 3 (wealth tax). As a result, you are not required to declare or pay Dutch tax on your foreign-held assets, such as savings, investments, or real estate. This makes the Netherlands particularly attractive for expats with substantial international wealth.

✅ Driving Licence Exchange

With the 30% ruling, you and your partner can exchange your foreign driving licences for a Dutch licence without taking additional theory or practical exams.

Who Qualifies for the 30% Ruling?

To be eligible for the 30% ruling, you must meet specific criteria set by the Dutch tax authorities. These include:

💼 Salary Threshold

  • Standard: Minimum taxable salary of €46,107 (2024).

  • Under 30 with Dutch-recognized Master’s: Reduced threshold of €35,048 (2024).

📍 Distance Requirement

You must have lived more than 150 km from the Dutch border (in Europe) for at least 16 out of 24 months before starting your Dutch employment.

🧠 Scarce Expertise

You must have specific skills or expertise that are not easily found in the Dutch labor market. Your employer must confirm this.

🌍 Recruited from Abroad

You must have been hired from outside the Netherlands. If you’ve previously lived or worked in the Netherlands, you may not qualify—unless you’ve been abroad for a significant period.

Can I Use the 30% Ruling with My Own Company?

Yes. If you’re starting your own business in the Netherlands, you can still apply for the 30% ruling—either as a founder of a Dutch B.V., through a foreign company, or with the help of a payroll company, like ours.

💼 Structures That Work:

  • Dutch B.V. – Register a Dutch private limited company and employ yourself.

  • Foreign Company – Register your non-Dutch company in the Netherlands for payroll.

  • Payroll Company (EOR) – Let a professional employer of record (EOR) employ you, manage your admin, and apply the 30% ruling.

Learn more on our Employer of Record (EOR) page.

Benefits of Running Your Own Company with the 30% Ruling

✔ Higher Net Earnings – Earn directly from clients while benefiting from the tax-free allowance.
✔ Tax Efficiency – Use salary to optimize tax and avoid double taxation.
✔ Flexibility – Choose your projects, schedule, and business model.
✔ Independence – Run your company your way, while still enjoying expat tax benefits.

Important Considerations

Before proceeding, be aware of the following:

⏳ Application Deadline

You must apply for the 30% ruling within 4 months of your employment start date to retroactively receive the benefit.

💸 Salary Threshold

Even as your own employer, your B.V. or foreign company must pay you a qualifying taxable salary (€46,107 or €35,048, depending on your age and degree).

⚖ VAT & Corporate Obligations

Operating a business in the Netherlands involves VAT registration, annual filings, and corporate tax reporting.

⚠ One-Client Risk

If you only work for one client, the Dutch tax authorities may reclassify you as their employee, potentially triggering social security liabilities.

How Nexpat Helps

At Nexpat, we offer complete support for expats seeking to benefit from the 30% ruling—whether employed by a Dutch company, a foreign business, or their own venture.

🔧 Our Services Include:

✅ Company formation (Dutch B.V. or foreign branch registration)

✅ Payroll administration and bookkeeping

✅ VAT and corporate tax filings

✅ Full management of your 30% ruling application

✅ Ongoing compliance support and advisory

Exchange Your Foreign Driving Licence

Once your 30% ruling is granted, you can apply for a Dutch driving licence. Here’s how:

  1. Medical Statement – Request a health check from the CBR or your local municipality.

  2. Town Hall Appointment – Schedule a visit to your city hall.

  3. Documents Needed – Bring your 30% ruling approval, medical statement, and original driving licence.

Your original licence will be surrendered in exchange for a Dutch one.

What Does It Cost?

Our complete 30% ruling application service is available for a flat fee of €547 (excl. VAT). This includes:

  • Eligibility review

  • Questionnaire support

  • Document collection

  • Filing with the Dutch tax authorities

  • Follow-up communication and decision handling

Already applied and got rejected? We offer second opinions and help re-apply if possible.

Ready to Apply?

Start today by completing our 30% ruling questionnaire.
We’ll assess your eligibility, prepare your application, and handle the entire process—so you can focus on settling into life and business in the Netherlands.

👉 Contact us to begin your application.