Updated 30% Ruling Rules

You may already know that the Netherlands has a tax benefit called the 30%-regeling (also known as ruling). Employers in the Netherlands who hire highly skilled professionals (kennismigrant, hoogopgeleide werknemers) from abroad can offer this scheme to employees who meet certain requirements. The benefit compensates for relocation and settling-in costs.

The compensation is provided for a maximum period of 5 years and can be implemented in 2 ways:

• The employer pays an untaxed percentage of salary,
• The employer fully reimburses the employee's extraterritorial costs as employment expenses.

From 1 January 2023, employers must choose annually between these two methods in the first pay period of the calendar year.

Changes for those who gained eligibility after 1 January 2024:

• From 1 January 2027 the compensation will be reduced from 30% to 27%. In 2024-2026, the 30% rule still applies.
• From 1 January 2024, the 30% rule applies only up to the so-called maximum compensation norm (Balkenende-norm). In 2025, the Balkenende-norm is EUR 246,000.
• From 1 January 2025, the ruling no longer grants the right to so-called partial foreign tax liability (partiële buitenlandse belastingplicht). Income from foreign capital must be declared.

Overview of Changes for Expats

| Obtaining 30%-regeling | 2025 and 2026 | 2027 | | ------------------------ | ---------------------------- | ---------------------------- | | No later than 31-12-2023 | 30% and current pay standard | 30% and current pay standard | | In 2024 | 30% and current pay standard | 27% and current pay standard | | From 01-01-2025 | 30% and current pay standard | 27% and new pay standard |

Or

| Obtaining 30%-regeling | Balkenende-norm applies from | Partial tax liability abolished | Maximum reimbursement 27% | Higher salary criterion | | ---------------------- | ---------------------------- | ------------------------------- | ------------------------- | ----------------------- | | 2022 | 2026 | 2027 | n/a | n/a | | 2023 | 2024 | 2027 | n/a | n/a | | 2024 | 2024 | 2025 | 2027 | n/a | | 2025 | 2025 | 2025 | 2027 | 2027 |