What is the 30% ruling in the Netherlands?
Jan 10, 2023

What is the 30% ruling in the Netherlands?

The 30% ruling explained

A tax break called the 30% rule is given to highly qualified immigrants who work in the Netherlands. It enables qualified persons to obtain an allowance that is tax-free and equal to 30% of their wage, which may be used to pay the extra expenses associated with relocating and working overseas.

You must fulfil the following requirements in order to be qualified for the 30% ruling:

1. Your employer must have hired you after finding you overseas.

2. Your annual wage (before the 30% regulation is implemented) must be at least € 37.000.

3. You must possess specialised knowledge that is in short supply in the Dutch job market.

4. You must possess a current Dutch residency permit.

While it may occasionally be extended, the 30% decision is typically given for a maximum of five years. It is crucial to remember that the 30% rule is a tax benefit rather than a pay raise and that not all expats are eligible for it. It is a good idea to speak with a tax expert or financial advisor if you are an expat working in the Netherlands and think you could qualify for the 30% rule in order to ascertain your eligibility and comprehend any potential tax repercussions.

How to apply for the 30% ruling

You must make a request to the Dutch tax authorities to request the 30% ruling (Belastingdienst). Depending on your unique situation, the application procedure for the 30% rule may vary, but in general, the following stages are involved:

1. Collect the relevant paperwork:

In order to support your request for the 30% rule, you must supply a number of papers. A copy of your work contract, verification of your pay, and proof that you possess the required knowledge to be eligible for the ruling are a few examples of these.

2. Submit the application:

You may do this by filling out a paper application form and submitting it to the tax authorities (Belastingdienst), or you can apply for the 30% ruling online using the Belastingdienst's e-service portal.

3. Await the Belastingdienst's decision:

After reviewing your case, they will decide whether to approve the 30% rule. This procedure might take weeks or even months.

It is a good idea to speak with a tax or financial advisor to make sure you have all the required paperwork and to clarify the particular requirements for requesting the 30% ruling. They may also assist you with the application process and provide any information you need.