The Netherlands' 30% ruling in 2026: who qualifies and what it's worth

What the 30% ruling is

The 30% ruling lets employers pay qualifying employees from abroad up to 30% of their salary tax-free, as compensation for the costs of relocating. It reduces the effective tax rate significantly.

The salary threshold

• •You must earn above a minimum taxable salary set each year.
• •The threshold is higher for employees over 30 than for younger master's-degree holders.
• •There is a cap on the base to which the ruling applies, so very high salaries get less relief.

Who qualifies

• •You were recruited from outside the Netherlands (roughly 150 km+ from the border).
• •You have specific expertise not easily found in the Dutch labour market.
• •You and your employer apply for the ruling with the tax authority.

How long it lasts

The ruling applies for up to five years, though the tax-free percentage is reduced in later years under the current rules. The clock starts with your first Dutch job.

When it is worth it

For a qualifying expat, the ruling can be worth thousands of euros a year. Dutch income tax looks high on paper, but credits and the 30% ruling pull the effective rate down sharply.