30% Tax Ruling | Blue Umbrella (2024)

FAQs

30% Tax Ruling | Blue Umbrella? ›

An employer can pay up to 30% of the salary of an expat employee with the 30% ruling free of tax. An enormous tax saving for both employee and employer. Try our tax calculator to find out how much you can save with the 30% ruling.

The 150 kilometer distance is measured in a straight line (“as the crow flies”). You can make a circle with a radius of 150 kilometer around the Dutch border area nearest to your place of residence before coming to Holland to see if you meet the 150 kilometer condition for the 30% tax ruling.

Can I apply for the 30%-ruling if I have lived in the Netherlands before? Yes, that is possible. The years spent in the Netherlands will be deducted from the maximum duration of the 30%-ruling (5 years).

Your maximum compensation is no longer 30% over the entire term. From 1 January 2024, you are only entitled to a maximum compensation of 30% of your salary for the first 20 months of the term of your decision. The second twenty months you are entitled to 20%. And the third twenty months to 10%.

If your total box 3 income is less than €50,650 (or €101,300 combined with your fiscal partner), there's no tax to pay. Need help with tax brackets in the Netherlands?

Disadvantages: Your benefits related to social insurances will be lower due to your reduced contribution.

Under the Tax Plan for 2024, the 30% ruling is scaled back as of the 1st of January 2024. The benefit of the 30% ruling will gradually decrease over its five-year term, transitioning ultimately into a 10% ruling. More precisely, for the first 20 months, the 30% exemption on the salary will remain.

If you plan on a longer residency, you will have to apply for a permit. Requirements will differ, depending on the reason for your stay. However, you should note the Netherlands has no specific option for retirees. So your pension income needs to be sustainable.

If you want to stay in the Netherlands for longer than 90 days and you are not a national of an EU country, Liechtenstein, Norway, Iceland or Switzerland, you will need a residence permit. Often, you will also need an authorisation for temporary stay (MVV) to enter the Netherlands.

These are the requirements for a permanent residence permit. You meet the general requirements that apply to everyone. You have had a valid Dutch residence permit for at least 5 consecutive years. There are exceptions to the 5-year period for permanent residency.

What is the minimum salary for 30 tax ruling in the Netherlands? ›

However, a minimum salary of €50,069 is applicable for those who have completed a master's degree and are younger than 30 years old (in 2023 it was €45,559). This means that, when the 30% tax ruling is taken into account, your salary cannot become less than these amounts.

The 30% ruling is a Dutch tax advantage for highly skilled employees hired abroad to work in the Netherlands. If you can meet the various conditions, your employer can pay up to 30% of your salary as a tax-free allowance for up to 60 months (or five years): 30% of your wage is tax-exempt for the first 20 months.

The tax revenue funds public spending in the Netherlands, including healthcare, education, and social security benefits. In 2024, the Dutch government is projected to raise around €402.9 billion in taxes. Most of this will come from income tax, social security contributions, and Value Added Tax (VAT).

Expatriates may qualify for a special tax regime, the 30% facility. This facility exempts 30% of certain employment income from taxation. A non-resident individual receiving income from employment actually carried on in the Netherlands is subject to Dutch income tax.

There has to be an official employment relationship; The employer must be registered with the Dutch tax office; An agreement has to be set up between the employer and employee that this 30% ruling is applicable; The employee must be recruited or transferred from abroad.

Your passport or ID card is sufficient proof of your rightful residency in the Netherlands. The EEA comprises EU countries, Liechtenstein, Norway and Iceland.

The exemption with progression method usually applies to foreign elements of income for income tax and corporate income tax. In principle, foreign elements of income are exempt per individual country. The exemption method means that reductions will be granted for Dutch tax relating to foreign income.