Changes to the 30% Ruling

If you're an international and a highly-skilled migrant, you may be eligible for the 30% ruling during your stay in the Netherlands. This ruling makes it possible for your employee to grant you a maximum tax-free allowance of (approximately) 30% of your salary so long as your salary is more than a certain amount. Additionally, the 30% ruling is only applicable if you have been transferred from abroad, or otherwise recruited from abroad.

In 2022, the annual taxable salary must be more than 39,467 euros for most individuals. Exceptions to this include individuals who have an eligible master's degree and who are younger than 30 years old, in which case the annual taxable salary must be more than 30,001 euros. There is no minimum salary requirement for people who are employed as scientific researchers, doctors in training, or for those who are working in scientific education.

If you no longer meet the requirements in 2022, the 30% ruling not only will no longer apply to you but can also be withdrawn with retroactive effect - meaning that it will also affect your prior taxable salary in 2022. The salary requirements will be adjusted regularly so it is important to check each calendar year whether you are still eligible for the 30% ruling.

Another upcoming change in the 30% ruling is that, from 2024, the Dutch government will cap the maximum benefit, which means that the ruling can only be applied to up to 66,900 euros of your income (based upon the maximum tax free reimbursement base of 223,000 euros in 2023). This is a significant change from the current regulation which allows unlimited tax free reimbursement for costs an employee incurs due to their relocation to the Netherlands.  You can learn more about the government's intended plan regarding this on the Dutch government's website.

From January 2023, you will also no longer be able to switch between the 30% ruling and extraterritorial expense compensation during the calendar year. You can learn more about extraterritorial expense compensation on the Dutch Tax Authority's website.