30% Ruling special tax regime for expats

30% rulingThe Netherlands has a special tax regime for expatriates, the so-called 30% ruling, which provides a substantial income tax exemption of up to 30%, for a period of up to 120 months. This 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.

More information

Gerrit-Jan Doorneweerd, registered Pension Advisor,
Amsterdam, +31 (0)20 6200825
Mobile, 0651 471 9 – six – five. (Also in the evening and weekends.)
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