How long can you benefit from the 30% ruling in the Netherlands?

Russell Advocaten · 24 sep 2026

Under the current expat scheme, eligible employees can benefit from a tax-free allowance for a maximum period of 5 years. This duration applies from the first working day in the Netherlands and is stated on the official decision issued by the Dutch Tax Administration. The sections below address the most common questions about how this period is calculated, what can reduce it, and what to consider when it ends.

What changed about the 30% ruling duration in recent years?

The maximum duration of the 30% ruling has been reduced significantly over the years, from 10 years to 8 years, and ultimately to the current maximum of 5 years. For employees who began using the scheme before 1 January 2024, the original rules continue to apply for the full 5-year period. For those who became eligible on or after 1 January 2024, additional changes are phased in.

The most notable upcoming change concerns the tax-free percentage itself. As of 1 January 2027, the maximum tax-free reimbursement will be reduced from 30% to 27% of gross salary. This reduction applies to employees who started using the scheme after 1 January 2024. Employees who entered the scheme before that date retain the 30% rate for the remainder of their 5-year period.

Further changes introduced since 2025 include the removal of the partial foreign tax liability option. Since 1 January 2025, employees using the expat scheme can no longer be treated as foreign taxpayers for Box 2 (substantial interest) and Box 3 (savings and investments) purposes. They are now required to declare their worldwide capital income in the Netherlands, in line with standard resident taxpayer rules.

There is also a cap on the salary to which the tax-free allowance applies. The maximum untaxed allowance in 2026 is €78,600, which applies to employees earning €262,000 or more annually. For those earning less, the allowance is calculated proportionally. These ongoing adjustments reflect a broader policy direction of gradually scaling back the scheme, making it important to monitor any further legislative developments.

Does the 5-year period reset if you change employers?

No, the 5-year period does not reset when you change employers. The duration of the expat scheme runs from the date of your first working day in the Netherlands, regardless of how many employers you work for during that time. The total entitlement remains fixed at 5 years, and the end date is recorded in the original decision issued by the Tax Administration.

That said, changing employers does require administrative action to ensure continuity of the scheme. The rules vary depending on the circumstances:

Same connected group of employers: If you move to another employer within the same group of withholding agents and you continue to meet the conditions, your existing decision remains valid. No new application is required.
New employer outside the group: You and your new employer must submit a new application to the Tax Administration. This must be filed within 4 months of your first working day with the new employer. If you start with the new employer within 3 months of leaving your previous role, the scheme can continue from the first day at the new employer without a gap.
Company takeover: If your employer’s business is acquired by another company, employees using the expat scheme retain the arrangement when transferring to the new entity.

A change of position within the same company does not necessarily require a new application, but it is advisable to verify this with the Tax Administration in advance.

What periods are deducted from your 30% ruling duration?

The Tax Administration deducts any prior periods of work or residence in the Netherlands from the 5-year duration of the expat scheme. This means that if you have previously lived or worked in the Netherlands, your entitlement may be shorter than 5 years from the start of your current employment.

The deduction applies to periods within the preceding 25 years. However, there are specific situations in which no deduction is made:

You previously worked or resided in the Netherlands, but that period ended more than 25 years before the start of your current employment.
You worked in the Netherlands only occasionally during the past 25 years, amounting to fewer than 20 days per year in total, for example, during business trips from abroad.
You stayed in the Netherlands occasionally for personal reasons such as holidays or family visits, and this did not exceed 6 weeks per year or a single consecutive period of 3 months.

For employees who previously qualified for the expat scheme and then relocated outside the Netherlands, a return to the Netherlands does not automatically restart the 5-year clock. The prior period under the scheme is counted, and the remaining duration is what applies to the new working period. The exact end date is stated in the decision issued by the Tax Administration, which should be checked carefully before making any assumptions about the remaining entitlement.

Can the 30% ruling be extended beyond 5 years?

No, the expat scheme cannot be extended beyond the maximum period of 5 years. Once the decision expires, the tax-free allowance ends, and the employee is subject to standard Dutch income tax rules in full. There is no formal mechanism to apply for an extension of the 5-year period.

The only scenario in which an employee might benefit from the scheme for a longer total period is if they leave the Netherlands and return at a later stage, provided they meet all the eligibility conditions again, including the requirement to have lived more than 150 kilometres from the Dutch border for more than 16 of the 24 months prior to the new start date. In that case, a fresh application can be submitted, but the duration of any previous period under the scheme will be deducted from the new 5-year maximum.

It is worth noting that the scheme’s duration has already been reduced from 10 years to 5 years in previous years, and further reductions to the tax-free percentage are planned for 2027. Any future legislative changes could affect employees currently within their 5-year period, making it prudent to stay informed and seek specialist advice well before the scheme expires.

What happens when the 30% ruling expires?

When the expat scheme expires, the employee’s full salary becomes subject to standard Dutch income tax without any tax-free allowance. This can result in a meaningful reduction in net income, depending on the salary level and the percentage that was previously applied. Employers and employees should plan for this transition in advance.

The following changes take effect upon expiry:

Full income tax liability: The employee is taxed on their entire gross salary under the standard Dutch progressive income tax rates, with no tax-free component.
Loss of partial foreign tax liability: Since 1 January 2025, this option has already been removed for employees who started the scheme after 1 January 2024, so this change may already have taken effect during the scheme period.
Payroll adjustments: The employer must update payroll administration to reflect the end of the tax-free allowance. The expiry date is stated in the Tax Administration’s decision, so both parties should be aware of it well in advance.
Review of employment terms: In some cases, the original employment contract may have been structured on the assumption that the 30% ruling would apply. It may be appropriate to revisit the terms of employment once the scheme ends.

Employees who are uncertain about their tax position after expiry, or who are considering whether to remain in the Netherlands, should consult a tax adviser or legal specialist to understand the full financial implications.

When should an expat seek legal advice on the 30% ruling?

An expat should seek legal or specialist advice on the expat scheme at several key moments: when first assessing eligibility, when changing employers, when the scheme is approaching expiry, and whenever legislative changes are announced that may affect the terms of an existing decision. Early advice helps avoid gaps in entitlement and ensures the scheme is applied correctly throughout its duration.

Specific situations that warrant professional guidance include:

Uncertainty about whether the salary threshold or distance requirement is met at the time of application.
A change of employer, particularly where it is unclear whether the new employer falls within the same connected group of withholding agents.
A return to the Netherlands after a prior period of work or residence, where the remaining duration of the scheme needs to be calculated.
Questions about how the 2027 reduction from 30% to 27% will affect an existing decision.
Employment contracts that need to be reviewed in light of the scheme’s expiry or changing conditions.
Broader questions about legal advice for expats covering residence, employment, or business matters in the Netherlands.

Given the ongoing changes to the scheme since 2024 and the planned adjustments for 2027, the regulatory environment around the expat scheme is more dynamic than it has been in previous years. Relying on general information alone carries risk, particularly where employment contracts, payroll structures, or long-term financial planning are involved.

How Russell Advocaten assists expats with the 30% ruling

Russell Advocaten Amsterdam is an internationally oriented law firm with decades of experience advising expats on the legal aspects of living, working, and doing business in the Netherlands. The firm’s lawyers communicate fluently in English, German, and Dutch, making them well placed to assist international clients navigating Dutch legal and regulatory frameworks.

For expats dealing with questions related to the expat scheme and broader legal matters in the Netherlands, Russell Advocaten offers practical support across a range of areas:

Reviewing employment contracts in light of the expat scheme and advising on terms that may need to be updated when the scheme expires.
Advising on employer changes and whether a new application to the Tax Administration is required to maintain continuity of the scheme.
Providing guidance on immigration and residence permits, setting up a business in the Netherlands, real estate and rental matters, and family law, covering the full spectrum of legal questions that expats commonly face.
Supporting international clients through the firm’s membership of the Primerus network, which connects 3,000 lawyers across 40 countries for cross-border matters.
Acting as a trusted legal partner for expats in Amsterdam through the firm’s official partnership with IN Amsterdam, the expat centre of the City of Amsterdam.

Whether you are newly arrived in the Netherlands, approaching the end of your expat scheme entitlement, or navigating a change in your employment situation, Russell Advocaten can provide clear, professional guidance tailored to your circumstances. Contact Russell Advocaten to discuss your situation with one of our lawyers.

This information is general in nature and does not constitute legal advice for your specific situation. Please consult a lawyer at Russell Advocaten for advice tailored to your circumstances.

Veelgestelde vragen

How do I know exactly when my 30% ruling expires?

The exact expiry date of your 30% ruling is stated in the official decision letter issued by the Dutch Tax Administration (Belastingdienst) when your application was approved. You should locate this document and note the end date carefully, as neither your employer nor the Tax Administration will automatically notify you when the expiry is approaching. If you cannot find your decision letter, contact the Tax Administration or a specialist adviser to retrieve the details.

What happens if my new employer misses the 4-month deadline to file a continuity application?

If the new application is not submitted within 4 months of your first working day with the new employer, you will lose the right to apply the 30% ruling from day one at that employer. In practice, this means the tax-free allowance cannot be backdated, and you will be taxed on your full salary for the period between your start date and the date the application is eventually filed — or the ruling may be denied entirely for that employment. Acting quickly when changing employers and ensuring your new HR or payroll team is aware of the deadline is essential to avoid this outcome.

Can I negotiate a higher gross salary with my employer to compensate for the loss of the 30% ruling when it expires?

Yes, renegotiating your gross salary is one of the most practical ways to offset the net income reduction when the 30% ruling expires, and it is worth raising this conversation with your employer well before the expiry date. Some employment contracts include clauses that already anticipate this transition, while others may need to be formally amended. A lawyer or tax adviser can help you understand the financial impact and prepare for salary negotiations with accurate figures.

Does the 30% ruling affect my Dutch state pension (AOW) accrual or other social security entitlements?

The 30% ruling itself does not directly affect your AOW accrual, as pension rights are based on your years of residence in the Netherlands rather than your tax status. However, the removal of the partial foreign tax liability option since January 2025 means that employees can no longer opt out of Dutch social security contributions for Box 2 and Box 3 income. If you have questions about how your specific social security position is affected — particularly if you have pension entitlements in another country — it is advisable to seek specialist advice, as cross-border situations can be complex.

If I work partly from home in the Netherlands and partly abroad, does this affect my 30% ruling entitlement or duration?

Working partially abroad can have implications for your 30% ruling, particularly if a significant portion of your working days are spent outside the Netherlands, as the scheme is tied to employment income earned in a Dutch context. The Tax Administration may scrutinise arrangements where an employee regularly works from another country, and in some cases this could affect the applicable percentage or eligibility. If your role involves substantial cross-border working, it is strongly recommended to discuss your specific situation with a tax or legal specialist before assuming the full ruling applies.

What is the salary threshold required to qualify for the 30% ruling, and does it change over time?

To qualify for the 30% ruling, employees must meet a minimum taxable salary threshold, which is adjusted annually. For 2025, the general threshold is €46,107 gross per year (after applying the 30% allowance), with a lower threshold applying to employees under 30 who hold a qualifying master’s degree. It is important to verify the current threshold each year, as failing to meet it can result in loss of eligibility. Your employer’s payroll administration should monitor this, but checking independently — especially around salary reviews — is good practice.

Is there anything I should do to prepare financially in the 12 months before my 30% ruling ends?

Yes — the 12 months before expiry is the ideal window to take several practical steps: calculate the expected reduction in your net monthly income, review your employment contract to identify any terms that reference the ruling, and discuss with your employer whether a salary adjustment is appropriate. You should also reassess your personal financial planning, including mortgage affordability, savings contributions, and any investment structures that may be affected by your new tax position as a full resident taxpayer. Consulting both a tax adviser and a lawyer during this period will give you the clearest picture of your options.

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