What is the 30% Ruling?

The 30% (formerly 35%) reimbursement ruling is a tax advantage for expat employees in the Netherlands. In a nutshell, the Dutch government offers extra incentives to attract foreigner specialists with specific skills and / or expertise that are scarce or not available in the local marketplace.

In general, specialists who meet certain criteria are entitled to many fiscal and non-fiscal advantages.

Substantial tax relief (30% tax free reimbursement)

The most significant benefit is that the full Dutch taxable salary is reduced to a 70% taxable salary (i.e. 30% of agreed wage is exempt from payroll tax and personal income tax).

The Tax and Customs Administration offers a maximum effective tax rate of 36,4% (30%*100/70 of the gross salary) so that expats can cover their extraterritorial expenses. These expenses are costs that (nearly) all expatriates have to cover when working away from their homeland and may include: 
 Costs of water, gas, electricity etc (if prices in the Netherlands are higher than in the country of origin)
 Application costs for residence permit, visa, driving license etc.
Hotel expenses (if expats still live in their homeland)


  Various housing costs (especially in the initial stage)
  Traveling expenses and / or telephone calls to his / her country of origin
  Dutch courses costs for the expat and his / her family

Other tax reliefs

 Additional tax-free reimbursement for certain expenses (i.e. fees for international schools for expatriates' children).

 Possible exemption from the Dutch net-wealth taxation (i.e. partial non-resident taxpayers). Investments in real estate are not included though.

 Tax-free income from interest in any non-Dutch entity.

 All other income tax deductions still remain applicable.

 Entrepreneurial expats can also use this ruling if employed by their corporation (Ltd or Dutch BV). Besides, they can take advantage of this compensation to attract more specialists from abroad.

 Exchange foreign driving license for a Dutch one without taking the (otherwise required) driving test. This applies for family members as well.

Official issues
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