Changes to the 30% ruling
Do you employ foreign employees (e.g., experts)? If so, the 30% ruling may apply. Changes to the 30% ruling will be effective January 1, 2027.
We are happy to share an overview below.
The current 30% ruling:
The 30% ruling is for foreign employees temporarily working in the Netherlands who earn more than €46,107 a year. Under certain conditions, they are eligible for a tax-free allowance of up to 30% of their salary for 5 years. The maximum salary amount to which the allowance applies is €233,000 a year.
Conditions for the 30% ruling:
- The employee is employed by you.
- The employee has specific expertise.
- The employee meets the definition of an incoming employee (an employee who comes to the Netherlands for work).
- A decision has been issued stating that you can utilise the 30% tax-free allowance. The employer must apply to the Tax Administration for the 30% ruling.
Future changes to the 30% ruling:
From January 1, 2027, the 30% ruling will become the 27% ruling. Under certain conditions, employees can still receive a tax-free allowance of up to 27% of their salary. For the years 2025 and 2026, the 30% rate will continue to apply.
Further, the minimum salary will be raised to €50,436 (currently €46,107) and for employees under 30 with a master’s degree to €38,338 (currently €35,048). The salary standards are re-indexed annually.
