What is the 30% ruling in the Netherlands?

The 30% ruling allows qualifying expats to receive 30% of their gross salary tax-free for up to 5 years. This significantly reduces your effective tax rate. To qualify, you must be recruited from abroad, have specific expertise, and earn above a minimum salary threshold (€46,107 in 2026, or €35,048 for under-30s with a master's degree).

How much tax do expats pay in the Netherlands?

Without the 30% ruling, Dutch income tax ranges from 36.97% (up to €75,518) to 49.5% (above €75,518) in 2026. With the 30% ruling, your effective rate drops dramatically — a €70,000 salary would have an effective rate of about 25% instead of 37%.

Is the 30% ruling being reduced?

Yes, the ruling was reduced from 30% to 27% for the first 20 months, then 18% and 9% in subsequent periods, effective from 2024 for new applicants. Existing holders may be grandfathered under the old rules. Check the latest Belastingdienst guidelines for current rules.