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The tax break for highly skilled migrants — and why it keeps getting cut
Part of: Expat Essentials
The 30% ruling (30%-regeling, now formally called the Expat Scheme or ET-regeling) is a tax facility for employees recruited from abroad to work in the Netherlands. If you qualify, your employer can pay you 30% of your salary tax-free, on top of your taxable income. The idea is to compensate for the extra costs of relocating internationally — housing, school, travel home — without requiring you to submit receipts for everything.
For high earners it is a significant benefit. On a €100,000 salary, 30% tax-free means you pay income tax on €70,000 instead. That difference in take-home pay is one reason the Netherlands attracts international talent, particularly in tech, finance, and research.
You must: - Be recruited or transferred from abroad (you cannot have lived within 150km of the Dutch border in the 24 months before taking the job) - Have a specific expertise that is scarce in the Dutch labour market - Earn above the minimum salary threshold: €48,013 gross per year in 2026 (€36,497 for employees under 30 with a verified Master's degree) - Have your employer apply on your behalf within 4 months of starting the role (late applications lose the benefit for the missed period)
Both you and your employer must sign the application. It goes to the Belastingdienst.
The ruling is granted for a maximum of 5 years, minus any time you previously lived or worked in the Netherlands.
The 30% ruling has been repeatedly reduced in recent years and faces further changes:
If you are currently on the ruling, check with a tax advisor what the 2027 changes mean for your specific situation. If you are considering a move to the Netherlands and the ruling is part of your package calculation, factor in that the benefit is smaller than it was five years ago and may shrink further.
There is an upper limit: the ruling cannot be applied to salary above the Balkenende norm (the public sector pay cap) — €262,000 in 2026. Above that threshold, the 30% benefit no longer applies.
The 30% ruling is a payroll tax benefit, not a visa or residence permit. It does not affect your BSN, your health insurance obligations (Zorgverzekering), or your right to work. It is purely about how much income tax your employer withholds each month.
Your employer applies through the Belastingdienst. If the application is late, you lose the benefit for the period before the application — it is not backdated beyond 4 months from your start date. Make sure your HR or payroll team files promptly.
These guides are written to help you understand the Netherlands — not to replace professional advice. We do our best to be accurate but we make mistakes and information goes out of date. For anything that affects your legal status, taxes, finances, or health, verify with an official source or a qualified advisor.