Eligibility
There are a number of criteria which must be proved in order to be granted the ruling:
The applicant must have received a written decision (beschikking) from the Dutch Tax Authority allowing them to utilise the 30% facility.
The 30% ruling is generally only granted once in a taxpayers life. There may be an exception granted where an applicant who previously lived in the Netherlands and was granted the ruling has been living and working outside of the Netherlands for at least 25 years (incidental visits for business or leisure to the Netherlands do not count as living and working in the Netherlands).
Minimum Wage
The following are the applicable minimum wage levels to be eligible for the 30% ruling:
| Criterion | Taxable Salary | Gross Salary |
| Older than 30 Years OR Younger than 30 Years without a Masters Degree | €47,780 | €68,256 |
| Younger than 30 Years AND holding a Dutch Masters Degree (or equivalent) | €35,036 | €50,052 |
| HSM meeting reduced salary criteria | €25,108 | €35,868 |
If you are a researcher at a designated research facility or a doctor training to be a specialist you are able to apply for the 30% ruling regardless of your salary.
If an employee earns less than the taxable salary they may, in some instances, still apply for the 30% ruling (provided all the other criteria are met). However, the amount exempted from tax is always only applicable to the amount in excess the taxable salary threshold.
By way of example, if an employee (presume they are older than 30 years) is hired on a salary of €60,000 per annum and is granted the use of the facility the taxable salary will remain €47,780. In other words, the tax-free portion of their salary will only be €13,380 (€60,000 – €47,780) representing a ‘20% benefit’ rather than the full 30% benefit.
If an applicant is granted the 30% ruling based on the lower income criterion that threshold remains in place for the duration of the ruling, regardless of whether or not the applicant turns 30 during the ruling.
Maximum Tax Free Salary
The maximum untaxed portion of an applicant’s salary is capped at €69,900. This equates to a gross salary of €233,000.
Other Benefits of the 30% Ruling
Employees granted the 30% ruling may avail themselves of other benefits such as tax-free reimbursement for international school fees from an employer.
Future Changes to the 30% Ruling
In addition to the salary criteria which change annually, there are a number of changes that have been promulgated which will impact the 30% Ruling as it currently stands. Most importantly is that the tax-free portion will decrease from 30% to 27% from 01 January 2027 and a new, much higher, salary threshold comes into play for applications made in 2025 and later.
The partial non-residency election for Box 2 and 3 is abolished as of 2025.
There are certain transitional rules applicable to holders of the 30% ruling as at 31 December 2023, as well as those who applied for the ruling in 2024.
Applications for the 30% Ruling
A written application must be submitted to the Dutch Tax Authority. This is a joint between employer and employee – in other words, both parties must agree to apply for the ruling. An employer is not obliged to pay the full (or any) benefit to the employee even if the ruling is granted.
Should you wish to apply for the 30% ruling or have any additional questions please feel free to reach out to us!
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