The Netherlands 30% Tax Ruling in 2026: Who Qualifies and How to Apply

One of the most significant financial perks available to internationally recruited workers in the Netherlands is the 30% ruling — officially called the expatregeling or expat scheme. If you qualify, a substantial portion of your salary can be paid to you tax-free, dramatically reducing your effective income tax rate. For many highly skilled expats, this benefit is worth thousands of euros per year.

This guide explains exactly how the 30% ruling works in 2026, who qualifies, how to apply, and what the upcoming changes mean for you.

What Is the 30% Ruling?

The 30% ruling allows a Dutch employer to pay up to 30% of a qualifying employee's gross salary as a tax-free expense reimbursement, intended to cover the extra costs of relocating from abroad (housing, travel, cost of living differences). Since this portion of the salary is untaxed, it effectively reduces the employee's Dutch income tax burden significantly.

At higher salaries, the Dutch income tax rate reaches 49.5% on income above €75,518 in 2026. With the 30% ruling, the effective rate drops to approximately 34–35% at most income levels — a saving of fifteen percentage points or more.

The ruling currently lasts for a maximum of five years from the date your employer's application is approved.

Who Qualifies for the 30% Ruling in 2026?

To benefit from the expat scheme, you must meet all of the following five criteria:

1. You Must Be Employed

The 30% ruling only applies to employees. If you are self-employed (a zzp'er or freelancer), you cannot use this ruling.

2. Recruited From Abroad

You must have been recruited from outside the Netherlands — either you were living abroad when you accepted the job, or your Dutch employer specifically sought you out in another country.

3. The 150-Kilometre Distance Rule

For at least sixteen months in the twenty-four months before your first working day in the Netherlands, you must have lived more than 150 kilometres from the Dutch border. This excludes most Belgian, German, and Luxembourg residents but covers most people moving from the UK, Italy, Spain, India, the US, and most of the rest of the world.

4. Minimum Salary Threshold

In 2026, your gross salary excluding the tax-free allowance must be at least €46,107 per year. For employees under the age of 30 with a qualifying Master's degree (or equivalent), this reduced threshold is €35,048.

5. Specific Expertise Scarce in the Dutch Labour Market

Your skills or qualifications must be considered scarce in the Netherlands. In practice, if you meet the salary threshold and were recruited from abroad, the expertise criterion is generally considered satisfied for the purpose of the application.

The 2026 Cap on the Tax-Free Amount

Since 1 January 2026, a maximum cap has been introduced on the amount of salary that can be paid tax-free under the expat scheme. The maximum tax-free amount in 2026 is €78,600. This cap applies regardless of your actual salary.

In practical terms: if your gross salary is €262,000 or more, you can receive the maximum untaxed amount of €78,600. If your salary is lower, the untaxed amount is calculated as 30% of your qualifying income.

How to Apply

An important detail many expats miss: your employer applies, not you. The process works as follows:

1. Your employer submits a joint application to the Dutch Tax Administration (Belastingdienst) on your behalf and on their behalf. This application is called the beschikking request.
2. The application must be submitted within four months of your first working day in the Netherlands. Apply late and you lose the benefit for the months you missed.
3. Once approved, the Belastingdienst issues a beschikking (ruling) confirming that you and your employer are permitted to apply the scheme.
4. Your employer then begins applying the 30% scheme to your monthly payroll. The benefit shows up in your net salary immediately.

If your employer is not familiar with the process, ask them to consult a Dutch payroll service or tax adviser. Most IND-recognised sponsors have HR or payroll teams experienced with this process.

Changes Coming in 2027

The Dutch government has agreed that from 1 January 2027, the maximum tax-free percentage under the expat scheme will be reduced from 30% to a fixed 27% for all existing and new beneficiaries. This is a significant change for anyone currently on the scheme or planning to use it.

In 2026, the rate remains at 30%, so if you are eligible and have not yet applied, now is the time to ensure your employer initiates the application process.

The 30% Ruling and Your Tax Return

With the 2026 changes, employees with an approved 30% ruling can no longer opt for partial foreign tax liability in their Dutch income tax return. This means you will now need to declare and pay Dutch tax on your Box 2 (substantial interest) and Box 3 (savings and investments) income for the full year — not just the Dutch portion.

If you have foreign savings, investments, or shares, discuss this with a Dutch tax adviser to understand the implications for your specific situation.

A Simple Example

Suppose your gross salary is €90,000 per year. Under the 30% ruling:

• 30% of €90,000 = €27,000 is paid tax-free as an expense allowance
• The remaining €63,000 is taxed as normal Dutch income
• At a marginal rate of 49.5%, the tax on €27,000 that you avoid is approximately €13,365
• Your effective saving is roughly €1,100 per month net

The actual saving depends on your total income, other deductions, and personal situation, but the ruling consistently delivers a meaningful benefit for most qualifying expats.

If you think you might qualify for the 30% ruling, raise it with your employer's HR team on day one — the four-month application deadline starts from your first working day in the Netherlands.

WelkomNL Helps You Navigate Dutch Tax Benefits

The WelkomNL app includes a guide to the 30% ruling and other Dutch tax benefits for internationals, with clear explanations in multiple languages. Our AI assistant can help you understand whether you might qualify and point you to the right resources.