Do I qualify for the 30% ruling? (2026)

What is the 30% facility?

The 30% ruling, also known as the expat ruling, is a Dutch tax facility that allows your employer to pay up to 30% of your taxable salary tax-free. This tax-free allowance is intended to compensate for so-called extraterritorial costs: the additional expenses you incur because you live and work outside your home country.

The main advantage is that you do not need to keep records of those costs. The 30% is simply paid out tax-free, even if you do not actually incur all those costs in practice. This makes it attractive for both employee and employer: a higher net salary and lower payroll costs.

Please note: From 1 January 2027, the maximum percentage will be reduced from 30% to 27%. Employees who were already using the ruling in the last payroll period of 2023 will retain the 30% rate.

What are extraterritorial costs?

Extraterritorial costs are the additional expenses you incur as a foreign employee because you live and work in the Netherlands. The five most common ones are:

1. Cost of living: higher expenses for utilities, groceries or daily costs compared to your home country.
2. Orientation trip costs: arranging housing, schools for your children or other practical matters before or upon arrival in the Netherlands.
3. Medical examinations and vaccinations: all costs for required or recommended medical checks and vaccinations.
4. Double housing costs: if you still (partly) live in your home country, you can be reimbursed for temporary accommodation costs in the Netherlands.
5. Official document costs: think of visas, residence permits, driving licences and the translation or legalisation of documents.

What are the conditions for the 30% ruling?

1. You are in salaried employment with a Dutch withholding agent

Your employer must withhold wage tax on your salary. A foreign employer can voluntarily register as a Dutch withholding agent to meet this requirement. Are you self-employed (freelancer)? You may still qualify through the so-called 'opt-in' arrangement, under which you are treated as an employee for tax purposes.

2. You have specific expertise

You are deemed to have specific expertise if your guaranteed taxable annual salary, excluding the tax-free allowance, exceeds the salary threshold. For 2026, the following applies:

• € 48,013 per year (general criterion)
• € 36,497 per year for employees under 30 with a recognised master's degree
• No salary threshold for scientific researchers at designated institutions and doctors training to become medical specialists

The salary criterion is indexed annually and tested on an ongoing basis. If your salary drops below the threshold at any point, the ruling will lapse.

Looking ahead to 2027: For employees who started using the ruling after 2024, the salary threshold will increase to over € 50,436 from 1 January 2027. Those who were already using the ruling in the last payroll period of 2024 will remain under the current indexed criterion.

3. You were recruited or seconded from abroad

In the 24 months before your first working day in the Netherlands, you must have lived more than 150 kilometres from the Dutch border for at least 16 months. This means that residents of Belgium, Luxembourg and large parts of Germany, France and the United Kingdom generally do not qualify.

Important: the employment contract should ideally be signed before the employee moves to the Netherlands. If an employee changes employer within the Netherlands at a later stage, the ruling can be continued, provided no more than three months pass between the last working day with the previous employer and the signing of the new contract.

4. Your application is submitted on time

The application is filed jointly by the employee and employer with the Dutch Tax Authorities. If submitted within four months of the first working day, the ruling applies retroactively from that date. If submitted later, the ruling only takes effect from the first day of the month following the month of submission. The Tax Authorities typically issue a decision within six weeks.

How long does the 30% ruling last?

The 30% ruling applies for a maximum of 5 years (60 months). Any previous periods of residence or employment in the Netherlands within the past 25 years are deducted from this maximum. Periods of up to 20 working days per calendar year or short private visits (up to six weeks per year) are disregarded.

Calculation example

The table below shows how the 30% ruling affects your net salary in a simplified example:

As the example shows, applying the 30% ruling can make a significant difference to your monthly take-home pay.

Is there a maximum salary for the 30% ruling?

Yes. Since 1 January 2026, the WNT cap applies to all employees, as the transitional arrangement expired on 31 December 2025. The tax-free allowance is calculated on a maximum salary of € 262,000 per year. This means the maximum tax-free allowance is € 78,600 per year. Any income above the WNT cap is taxed normally.

How can Firm24 help you?

Through Firm24, you can arrange the 30% ruling application online, in collaboration with our tax specialist partner. You choose the step that best fits your situation:

• Eligibility check (€ 175 excl. VAT): want to know first whether your employee qualifies? We start with a written assessment based on your specific situation.
• Standard application (€ 400 excl. VAT): for cases that meet the standard conditions. The specialist files the application with the Dutch Tax Authorities and the official ruling is typically issued within 6 weeks.
• Complex application (from € 800 excl. VAT): for cases that require additional justification or non-standard documentation.

In short

The 30% ruling can provide a significant financial advantage for both employee and employer. But the conditions are specific and the rules are changing further in the coming years. Not sure whether your situation qualifies? Schedule a free consultation with one of our advisors.