Hello Going Expat people,

Table of Contents

Always when I talk about moving to the Netherlands, I inform you of the possibility to benefit from a tax ruling, that is, the possibility to receive a huge % of your salary not taxed for 5 years.

The basic rules for having this tax advantage (valid only for expats) have changed a bit across the years, included the % of the benefit itself.

During 2024, it looked like the Government would have put an end to it, but then, during Prinsjesdag we got the good news that, although the % decresead a bit (from 2027), the benefit remains in place!

Let’s review the requirements together.

The requirements may change slightly depending on the variants, such as if you have a PhD, but the basic, and most important, requirements are as follows:

  • You must have been recruited abroad. So when you are not yet registered in the Netherlands.
  • The residence of the last 2 years before the request of 30% tax ruling, must be over 150km from the Dutch border.
  • You must not have already received the benefit during a previous work experience.
  • The skills of the work that will be carried out are considered difficult to find already on site.
  • From 30 years old onwards the basic salary of the new job must be €46,107 (previously it was around € 39,000) under 30 years of  €35,048 (previously it was around € 30,000) – it is gross in both cases – .
  • The company must also be registered in the Netherlands and then pay taxes in the country where it practices.

As anticipated these elements do not change.

So what changes then?

Starting from January 2024, all those who will access the bonus (I am talking about new beneficiaries), were supposed to gradually see reduced the portion of salary that would not be taxed, from 30 to 10%. And those who come with these features starting from 2025 would may not be able to enjoy the benefit anymore.

As said, the rules have changed again. The government has proposed to introduce a flat rate up to 27% of the Capped Wage as of 1 January 2027. This effectively turns the 30%-ruling into a 27%-ruling. For the years 2025 and 2026, the flat rate will be 30% of the Capped Wage for all incoming employees.

One more change that will happen in 2027 regards the gross annual income to access the benefit:

The minimum salary to request the benefit will be increased from €46,107 to €50,436 (subject to indexation). For incoming employees under 30 years old with a qualifying master’s degree, the salary norm will increase from € 35,048 to €38,338 (subject to indexation). The good news is that there will be an increase in the minimum wage effective 1 January 2025, and surely one more as per 1 January 2027

I’d like to remind you that this is not a tax discount, but a portion/ percentage of the salary that is paid gross, then no taxes.

What happens to those who already benefit from the 30% tax ruling?

Nothing, all those who can enjoy the tax benefit, approved before 1 January 2024 will continue to receive 30% of the untaxed salary, taxes will be clearly calculated on the remaining 70%. The wont’t be affected by the 27% new tax ruling.

Those who will have access to tax relief from 1 January 2024 will instead, be affected. As per 1 January 2027, before that they will have the 30% benefit based on the “old” minimum salary request. As per 1 January 2027 they will see the portion untaxed of their salary decrease to 27% and they will keep the benefit only if their minimum salary comply with the new amount of €50,436.

Here you can find all details and info.

Do you need support or have questions? Feel free to write them in the comments or email me.

Do you want to support the blog and what I do with Going Expat?

Then you can buy me a coffee

Thank you and talk to you soon

Rossella