In order to try and attract more international talent to the Netherlands, the Dutch government introduced a tax incentive called the ‘30% ruling’. This is usually available for people that are in possession of a ‘Highly-Skilled Migrant’ residence permit, and who had to move to the Netherlands for their new job, however not for every case.
The tax break is intended to help with the costs of relocating to a new country, such as travel expenses, costs of international education or furnished housing. You also benefit from the provision to exchange a non-EU driving license for a Dutch one (for both the person with the benefit and their partner). With the 30% ruling you may opt to be considered a non-resident tax payer for your worldwide assets.
To qualify for the 30% tax ruling, you must:
- 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.
How to apply
Your employer must apply for the 30% ruling with you (and often on your behalf) so it is best to talk to your HR department if you think that you are eligible for the ruling.
For more information, see the Dutch tax office website