The 30% ruling is a Dutch tax facility aiming at attracting foreign employees with specific skills or expertise to work in the Netherlands. On this page you will find a brief overview of the 30% ruling including the conditions, the application procedure and two fictional examples.
The 30% ruling provides a tax free allowance (30% allowance) which is deemed to cover all so-called extraterritorial costs. Extraterritorial costs are defined as the extra costs for staying outside of the country of origin. Such costs relate for example to:
The 30% ruling can be granted for a maximum of 5 years (60 months). This period will be reduced with earlier periods of stay or employment in the Netherlands.
In this example, the 30% allowance amounts to € 16.500. This is 30% of the salary. This example shows that the benefit of the 30% ruling is € 6.163 (€ 40.620 – € 34.457).
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