30 percent ruling The Hague region

30% ruling


What is the 30% ruling?

The 30% facility is available for employees who are recruited from outside the Netherlands to work here temporarily. If they satisfy the conditions (stated below), they need not pay tax on up to 30% of their salary. This government measure helps them cover additional costs resulting from working in the Netherlands, such as travel expenses, additional housing costs and day-to-day expenses.

If your company is recognised by the IND as a sponsor, it will receive a letter specifying the period that you qualify for the 30% ruling. Under this rule, your employer may grant you a free (untaxed) reimbursement for the extraterritorial costs that you incur. If the application has been granted by the tax office, 30% of your taxable income is exempt from taxation.


The government wants to shorten the duration of the 30% facility from 8 to 5 years from 1 January 2019. Employees who arrive in the Netherlands on or after that date will enjoy the tax break for up to 5 years. Employees who already have the Tax and Customs Administration’s permission to use the facility will also be affected by the shorter duration. They must deduct 3 years from the end date stated in the Administration’s decision.

Transitional scheme

A transitional scheme will be introduced for employees who will be affected by the shorter duration in 2019 and 2020. They will remain eligible for the 30% facility until 31 December 2020. The end date stated in the Tax and Customs Administration’s decision determines how long an employee will continue to benefit from the 30% facility.

  1. If the end date is in 2019 or 2020, nothing will change for the employee.
  2. If the end date is in 2021, 2022 or 2023, the employee will continue not paying tax on up to 30% of their salary until 31 December 2020.
  3. If the end date is in or after 2024, the employee will not qualify for the transitional scheme. The end date will be brought forward by 3 years.

Read more about the shortening of the 30% ruling at the website of the Dutch government.


You have to meet the following rules:

  • The employee has to work as an employee;
  • The employee works for an employer that is registered with the Dutch tax office and pays payroll tax;
  • Employer and employee have to agree in writing that the 30 percent ruling is applicable;
  • The employee has to be transferred or recruited from abroad;
  • The employee did not reside within 150km from the Dutch border for the last 18 out of 24 months at the time of hiring;
  • The gross annual salary has to surpass a minimum (adjusted annually). In 2018, the annual taxable salary for an employee cannot be less than €37,296. A minimum salary of €28,350 is applicable for those who have completed a Master's degree and are younger than 30 years old. For scientific researchers no minimum salary is required;
  • The employee needs to have expertise that is scarcely available in the Netherlands.

Financial consequences

The 30%-ruling has certain consequences in terms of social security. Social security rights and premiums may also be affected as these will be based on salary only, therefore excluding the 30% allowance. Pension rights, however, can be based on the salary plus the tax-free 30% allowance provided it does not exceed the general maximum pensionable base of euro 105,075 per year for 2018.

How to apply

Complete the form and attach the required documents. Make sure that both the employer and employee sign the application. Send the form with the requested appendices to:

Belastingdienst/Kantoor Buitenland
Postbus 2865
6401 DJ Heerlen

You must submit the application within 4 months of your starting date, or else you will only be able to use the facility from the first day of the month after that in which you made the application.

Related Articles

If you start living and working in the Netherlands, you will also have to contribute to the Dutch tax system. There are several national taxes, of which the income tax is the most important.