30% ruling pension The Netherlands

The Netherlands has a special tax regime for expatriates, the so-called 30% ruling benefits, which provides a substantial income tax exemption of up to 30%, for a period of up to 120 months. This 30% ruling pension is viewed as a reimbursement for the extra costs involved in living abroad.

  • According to this rule, the employer may grant the employee a tax-free allowance of up to a maximum of 30% of his or her remuneration. The remuneration includes incidental and flexible forms of income such as bonus payments and stock options. Termination and pension payments are excluded.
  • In order to qualify for the 30% ruling, the following conditions must be met:
  • The employer must make a reasonable case that the employee possesses specific expertise that is not available, or is scarce in the Dutch labor market
    • The employee must be recruited from abroad
    • The employer must be a Dutch wage tax-withholding agent
    • The exemption is available for a period of 10 years (120 months).
  • After a period of five years, the tax authorities can request that the employer demonstrate that the employee still meets the conditions.

Calculation pension contribution employee (dutch)

Calculation defined contribution scheme

Pension accrual and the 30% ruling pension

If certain conditions are met, expatriates may be eligible for the 30% ruling. This arrangement means that there is a tax-free allowance which will be given up to 30% of wages. The tax free fee is for the extra cost of the temporary residence of the expat in the Netherlands. This allowance is tax not paid.

In principle you usually do not build up pension on the tax-free reimbursement of the 30% ruling. The pension benefits granted by the employer are based on your taxable salary; thus lower since the “top” is taken off as a tax free reimbursement.

The main rule is that the 30% reimbursement gives no accrual pension. The 30% ruling pension consequences can be complicated. A correct pension scheme solution is possible. Due to the 70% level of pension salary the widows and orphans pensions are also 30% lower. This gap is easily compensated with a private life insurance. Several other solutions for the 30% ruling pension problems are possible.

If you think I might be able to help you of your business with the 30% ruling pension:

Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening and weekends.)
Please give me a call or fill in the form.

Information and Calculations

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Tax calculator

An application that accurately calculates an indicatio of the benefits of the ruling

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