30% tax ruling

The Dutch government wants the Netherlands to be an attractive destination for international employees, especially for highly skilled people who possess specific expertise that is scarce in the Dutch labour market. This is the reason a tax reimbursement scheme exists, the 30% ruling, which can allow employers to pay 30% of an employee’s salary tax-free.

This tax facility is designed to compensate for the additional costs international employees might face when coming to work in the Netherlands, such as for travel, housing, education, childcare and day-to-day expenses. Employees can make use of the 30% ruling if all of the following conditions are met:

  • They were recruited outside of the Netherlands.
  • They have a specific expertise that is not or hardly found on the Dutch labour market.
  • The employee and the employer agree that the ruling is applicable. 
  • The employee meets a certain salary threshold: a minimum amount of taxable salary after the 30% deduction. In 2021, this amount was 38,961 euros, or 29,616 euros for employees under 30 with a master degree.

When the necessary conditions are met, the employer may (but is not obliged to) grant the employee a tax-free allowance of up to a maximum of 30% of their gross salary.

For more information, visit the website of the Dutch Tax and Customs Administration (Belastingdienst).

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