Are you planning to relocate to the Netherlands? If so, you may have heard about the tax benefits for highly skilled migrants hired from outside of the Netherlands. When searching for information about the criteria and the application process, you may have found yourself scrolling endlessly on Google. Which article is up to date? Which news source is reliable? This article is for anyone who has found themselves scrolling endlessly on Google, trying to find the right, most relevant information about the ruling.
Rest assured, we’re here to help! This article is a simplified guide to the conditions you should meet for the 30% ruling and the requirements for eligibility.
In essence, the 30% ruling is a tax advantage for highly skilled migrants working in the Netherlands. The taxable amount of a gross Dutch salary is reduced from 100% to 70%, meaning 30% of the wage is tax free. Now, let’s get into how you can avail of this tax benefit!
General Qualifications for the 30% ruling
- The employee must be employed by a Dutch B.V and have a contract.
- The employee must be hired or recruited from abroad.
- The employer must vouch that the employee has a special skill or expertise that is hard to find on the Dutch labour market.
- The gross salary has to surpass a minimum. Details on salary qualifications below.
Salary Qualifications for the 30% Ruling
- General: To qualify for the 30% ruling/ tax reduction your income must be above €38.961 (including Holiday Allowance and 13th month). If the employee’s income is above €55,659 (including Holiday Allowance and 13th month) they will benefit from the FULL 30% tax reduction
- Masters Degree Holders: If you have a Master’s degree and are under the age of 30, to qualify for 30% tax ruling, your threshold is €29,616 (including Holiday Allowance and 13th month). On a Masters, if your income is above €42,309 you will benefit from the full 30% tax reduction.
- Over 30 with a masters degree: If you are over 30 and have a Masters degree, your salary must be €38.347 (including Holiday Allowance and 13th month).
You’ll want to know that…
- The 30% ruling takes up to 4 months to be approved.
- If the application is submitted within 4 months of the employee’s start date, they will receive back pay to compensate for the months already worked in the new job.
- From Jan 1 2019, the maximum duration of the 30% ruling is 5 years.
- If you change jobs, you can apply to continue your 30% ruling in your new role.
The application is a joint effort between employer and employee. It is usually the employer that takes the lead on the 30% ruling application.
The employee will need:
- Completed application form
- Passport or valid photo ID
- Employment contract or letter from your employer confirming that you have been offered the position
- A BSN number, if you have it
- Dutch residence and work permits (if applicable)
- Details of your Dutch address
- Proof of residence in another country before being hired
- Company details including company tax number
- A written agreement clearly stating that both parties have consented to the application for the ruling
Other Contacts & Resources
Tax and Customs Administration Office (Belastingdienst)
I am Amsterdam: An in-depth look at the Netherlands’ 30% ruling