Doing Business in the Netherlands

The 30% ruling in 2026: requirements, salary threshold and the change in 2027

Updated: 6 October 2026 Holdwise editorial team 30% Ruling Expats International

Under the 30% ruling, an employer may pay up to 30% of the salary free of tax to an employee hired from abroad. The ruling applies for at most five years. It is the largest tax benefit the Netherlands offers to international employees. 2026 is the last full year at the 30% rate. From 2027 the percentage is 27%. Founders can use the ruling too, through the payroll of their own BV.

Short answer

Up to 30% of your salary free of tax in 2026, for at most five years. You qualify when you lived more than 150 kilometres from the Dutch border in 16 of the 24 months before you started. Your salary must be above €48,013 (2026). You apply within four months of your first working day. From 2027 the percentage is 27%. Founders: set up your BV and sign your employment contract while you still live abroad, then relocate. Your own BV is your employer. The €58,000 director salary meets the threshold.

At Holdwise, we updated this answer on 5 September 2026 and change it when the rules change.

The 30% ruling: your employer may pay you a tax-free allowance of 30% of the salary, for at most 60 months. The ruling applies to employees hired from more than 150 kilometres outside the Dutch border. The salary must be above the yearly threshold. The Dutch tax office must grant the ruling first. From 1 January 2027 the percentage is 27%, and the salary threshold is higher. Employees who start in 2026 get 30% until the end of 2026 and 27% from 2027. Only employees who had the ruling before 1 January 2024 keep 30%.

Applying the 30% ruling? See Dutch payroll for companies from abroad, with the ruling in the monthly payroll.

How the ruling works

Normally an employer may only pay the extra costs of living abroad (double housing, trips home, Dutch lessons) free of tax, and only against receipts. With the 30% ruling, one flat rule applies. Up to 30% of the total pay may be paid out free of tax, with zero receipts needed. On a €100,000 gross package, €30,000 is free of tax. Payroll tax is then charged on €70,000 only. The net advantage in 2026 is about €16,300 per year.

The requirements in 2026

Hired from abroad. For more than 16 of the 24 months before your first working day, you lived more than 150 kilometres from the Dutch border.
Specific expertise, measured by salary. Your taxable salary must be above €48,013 in 2026. If you are under 30 and have a recognised master's degree, the threshold is €36,497. Scientific researchers are exempt from the salary threshold.
Employment with a Dutch employer that has a payroll. The employer applies the ruling through the payslip. The ruling is only for employees, so freelancers and sole traders are excluded. Entrepreneurs can use it through a Dutch private limited company (besloten vennootschap, BV), with the founder on the payroll.
A ruling from the Belastingdienst, requested by employer and employee together. If you apply within four months of the first working day, the ruling applies from your first working day.
At most 60 months, minus earlier periods of work or residence in the Netherlands.

The cap, and the change in 2027

Since 2024 the ruling applies only to salary up to the public-sector pay ceiling (the WNT norm, €262,000 in 2026). For your planning, the change in 2027 is more important. From 1 January 2027 the tax-free percentage drops from 30% to 27%, and the salary threshold is much higher. The government cancelled its earlier plan to reduce the percentage to 20% and later to 10%. The cut to 27% is the only change left. Employees who already used the ruling before 2024 keep their old terms.

People who start in 2026 get 30% for the months left in 2026. From 2027 they get 27%, like everyone who started after 2023. Only employees who had the ruling before 1 January 2024 keep 30% for their full term.

The 30% ruling for a founder with his own BV

The ruling is for employees. A founder can use it too, because a director who owns his company (DGA, directeur-grootaandeelhouder) is formally an employee of his own BV. Dutch practice and case law confirm that the ruling also applies to a director employed by his own company. The ruling sets zero conditions on the relationship between employee and shareholder.

The order of the steps decides everything. The law asks for an employee who was hired from abroad. So: set up the BV and sign the employment contract while you still live outside the Netherlands (more than 150 kilometres from the border), and relocate afterwards. Relocate first and set up the company later, and you were hired from inside the Netherlands. Then the ruling is closed to you. The salary threshold (€48,013) and the Dutch director salary (€58,000 in 2026) apply side by side. The norm applies to the salary after the 30% allowance. At €58,000 gross, only €40,600 stays taxable. That is below the norm, so plan on about €68,600 gross for the full 30%. For a founder who relocates to the Netherlands, setting up the BV together with the 30% ruling is one of the most valuable steps there is. We apply for the ruling as an add-on once you are registered in the Netherlands. The amount is in your proposal.

Paying the real costs of living abroad

Employer and employee may choose every year between the 30% flat rule and paying the real costs of living abroad free of tax. At lower salaries or for short stays, the real-cost option can work out better. At higher salaries the flat rule is almost always better.

Your foreign savings and investments (box 3)

Until 2025, holders of the ruling could keep their foreign investment income outside the Dutch tax on savings and investments (box 3). That rule was abolished in 2025, with a transition period until the end of 2026 for existing cases. If you start now, plan your foreign assets under the normal box 3 rules from the start. In 2026 the tax-free amount is €59,357 per person, and the rate is 36%.

If your ruling is about to end, see When your 30% ruling ends. That article is about the changes on your payslip and in box 3, and what to do in the last year.

The employer applies the ruling through the payroll every month. We handle the payroll for foreign-owned BVs and apply the ruling in it. You can read more about payroll and administration for a Dutch BV.

Terms on this page

30% ruling: Under this expat scheme, employers may pay part of the salary of recruited foreign specialists tax-free. This part is a reimbursement for extraterritorial costs. Conditions on distance and expertise apply. The current percentage and cap are on the figures page.
Customary salary (gebruikelijk loon): The minimum salary a DGA must pay themselves. The Dutch Tax Administration tests it against the yearly norm, the most comparable job and the best-paid employee. The salary may be lower in a few cases, such as when the most comparable job pays less or the salary is still too high for a new BV. A prior consultation (vooroverleg) with the Tax Administration gives certainty in advance.
BV (besloten vennootschap): The Dutch private limited company. It is a legal entity with registered shares and limited liability. The shareholder’s private assets are separate from the company’s debts. The BV is set up with a notarial deed. The minimum capital is €0.01.

All terms in the glossary →

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

How long does the 30% ruling last? +

At most 60 months (five years), minus earlier periods of work or residence in the Netherlands in the 25 years before you arrived.

What changes in 2027? +

The tax-free percentage drops from 30% to 27% and the salary threshold rises. Employees who started under the ruling before 2024 keep the old terms.

Can I get the 30% ruling when I start my own Dutch BV? +

Yes, through the payroll of your own BV. The order matters: set up the BV and sign the employment contract while you still live abroad, then relocate. The €58,000 director salary falls below the €48,013 threshold once you deduct the 30% (€40,600 stays taxable); plan on about €68,600 gross. Freelancers and sole traders fall outside the ruling; the BV is their way in.

What is the salary requirement? +

A taxable salary above €48,013 in 2026. If you are under 30 and have a recognised master's degree, the threshold is €36,497. Scientific researchers are exempt from the threshold. From 2027 the threshold is much higher.

When do I apply? +

Within four months of your first working day. The ruling then applies from your start date. If you apply later, the ruling starts only in the month after your application.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 6 October 2026