To qualify for the 30% ruling in the Netherlands, now formally called the Expat Scheme, an employee must be recruited from outside the Netherlands, hold a position that requires specific expertise scarce on the Dutch labour market, and meet the applicable salary threshold. The scheme applies to employees in paid employment only; self-employed individuals and sole traders do not qualify directly through this route. The sections below address the most common eligibility questions in detail.
What are the eligibility requirements for the 30% ruling?
The 30% ruling, officially the Expat Scheme, requires an employee to satisfy several cumulative conditions set by the Dutch Tax Administration. All of the following must apply simultaneously: the employee must be in paid employment, recruited from outside the Netherlands, and possess specific expertise that is scarce on the Dutch labour market, demonstrated primarily through a qualifying salary level.
The core conditions are:
- Paid employment: The scheme applies only to employees working under an employment contract. It cannot be applied directly to freelancers or the self-employed.
- Recruited from abroad: The employee must have been hired from outside the Netherlands. Residents of Aruba, the BES islands, Curaçao, and Sint Maarten are also treated as recruited from abroad for this purpose.
- Specific expertise: The employee must possess expertise that is scarce on the Dutch labour market, typically evidenced by meeting the minimum salary threshold (see below).
- Distance requirement: In the 24 months prior to the first working day in the Netherlands, the employee must have lived more than 150 kilometres from the Dutch border for at least 16 of those months.
- Valid approval: Both the employer and employee must apply jointly to the Dutch Tax Administration and receive a formal decision (beschikking) confirming eligibility.
Certain categories, scientific researchers at designated facilities and doctors in specialist training, qualify regardless of salary level. For all other applicants, the salary threshold is the primary measure of specific expertise.
What counts as ‘specific expertise’ under the 30% ruling?
Under the Expat Scheme, specific expertise is defined as knowledge or skills that are scarce on the Dutch labour market. In practice, the Dutch Tax Administration uses salary as the primary proxy for this scarcity. If an employee’s annual taxable salary, excluding the tax-free allowance itself, exceeds the applicable threshold, the expertise condition is considered met.
The current salary thresholds are:
- General threshold (2026): Annual salary above €48,013
- Reduced threshold for employees under 30 with a Dutch academic master’s degree or equivalent foreign qualification (2026): Annual salary above €36,497
Two additional categories are exempt from any salary requirement altogether:
- Scientific researchers conducting research at a designated research facility in the Netherlands
- Doctors in specialist training (artsen in opleiding tot specialist)
For employees with a PhD who begin doctoral research in the Netherlands, specific rules apply regarding the 150 km distance period: the time spent conducting PhD research and the period between completing the doctorate and starting work in the Netherlands do not count against the applicant, provided the initial distance condition was met when the PhD research began.
It is important to note that meeting the salary threshold does not automatically guarantee approval. The Tax Administration reviews each application on its merits, and the documentation submitted must clearly support the claimed expertise and employment conditions.
Does the 150 km distance rule affect all applicants?
The 150 km distance rule applies to the vast majority of applicants, but there are specific exceptions. As a general rule, an employee must have lived more than 150 kilometres from the Dutch border, measured as the crow flies, for at least 16 of the 24 months immediately before their first working day in the Netherlands. This requirement effectively excludes most residents of Belgium, Luxembourg, and parts of Germany, France, and the United Kingdom.
However, the distance rule does not apply in the same way to all applicants. There are two notable exceptions:
- Returning employees: If an employee previously qualified for the Expat Scheme, worked in the Netherlands, and then moved abroad again, they may re-qualify even if they did not live more than 150 km from the border, provided their previous work period started no more than five years ago, they held a valid Expat Scheme decision at that time, and they met the original distance condition when that earlier period began.
- PhD candidates: An employee who conducted doctoral research in the Netherlands may have lived within 150 km of the border during that research period without this disqualifying them, as long as the distance condition was satisfied in the 24 months before the PhD research commenced.
The duration of the Expat Scheme decision is also affected by any prior periods of work or residence in the Netherlands within the past 25 years. The Tax Administration will reduce the five-year entitlement accordingly, unless the prior stay was genuinely incidental, for example, occasional business trips of fewer than 20 days per year, or personal visits not exceeding six weeks annually.
How long can an employee benefit from the 30% ruling?
Under the current rules, the maximum duration of the Expat Scheme is five years. This period is stated on the formal decision issued by the Dutch Tax Administration. Employees who began using the scheme before 1 January 2024 retain access to the full 30% tax-free allowance for their entire five-year period under the old rules.
For employees who became eligible on or after 1 January 2024, the scheme is subject to a phased reduction. As of 1 January 2027, the maximum tax-free percentage will decrease from 30% to 27%. The maximum untaxed allowance in 2026 is €78,600, which applies to employees earning a salary of €262,000 or more who use the scheme for the full year.
The five-year period may be shortened if the employee has previously worked or resided in the Netherlands. The Tax Administration deducts any qualifying prior periods from the total entitlement. This reduction does not apply if the previous stay ended more than 25 years before the current employment began, or if prior presence in the Netherlands was genuinely incidental and within the thresholds described above.
Since 1 January 2025, employees using the Expat Scheme can no longer apply for the partial foreign tax liability (partiële buitenlandse belastingplicht). This means they must now declare their income from substantial interest (Box 2) and savings and investments (Box 3) in the Netherlands, even on foreign capital income, a significant change for those with assets abroad.
What happens if the 30% ruling application is rejected?
If the Dutch Tax Administration rejects an Expat Scheme application, the employer cannot apply the tax-free allowance to the employee’s salary. The employee will be taxed on their full gross salary under the standard Dutch income tax rates, without any compensation for extraterritorial costs through this route.
A rejection typically occurs when one or more of the eligibility conditions are not met, most commonly the salary threshold, the 150 km distance requirement, or insufficient documentation. In practice, this means the application must be carefully prepared with complete supporting documents, including the employment contract, proof of qualifications, and evidence of prior residence outside the Netherlands.
If an application is rejected, it may be possible to object to the decision (bezwaar maken) within the statutory period, or to reapply if the circumstances change. Given the complexity of the rules and the financial significance of the scheme, it is advisable to seek specialist legal or tax advice before submitting an application and, if necessary, when challenging a negative outcome. The specific procedural steps and prospects of a successful objection will depend on the individual circumstances.
When should the 30% ruling application be submitted?
The application for the Expat Scheme must be submitted jointly by the employer and the employee within four months of the employee’s first working day in the Netherlands. If this deadline is met, the scheme can be applied from the very first working day. If the application is submitted after the four-month window, the Tax Administration will only grant the scheme from the first day of the month in which the application was received, meaning earlier months are lost.
The process involves the following steps:
- The employer and employee complete the application form together, available on the Dutch Tax Administration website.
- Supporting documents are attached, typically the employment contract, proof of qualifications, and evidence of prior residence outside the Netherlands.
- The Tax Administration reviews the application and issues a decision (beschikking) within eight weeks.
- The decision states the start date and expiry date of the scheme.
If an employee changes employers, the scheme does not transfer automatically. A new application must be submitted within four months of the first working day at the new employer, provided the employee starts with the new employer within three months of leaving the previous one. If the new employer belongs to the same connected group of withholding agents, the existing decision remains valid and no new application is needed.
Given that timing errors can result in a permanent loss of part of the entitlement, early preparation is essential. Employers hiring expats in the Netherlands are strongly advised to initiate the application process as soon as the employment agreement is signed.
How Russell Advocaten Can Help Expats in the Netherlands
Navigating the Expat Scheme, and the broader legal landscape of living and working in the Netherlands, involves more than a single tax application. Russell Advocaten Amsterdam is an internationally oriented law firm with decades of experience advising expats on the full range of legal questions that arise when relocating to the Netherlands. The firm’s lawyers communicate fluently in English, German, and Dutch, which makes them a practical and accessible partner for international clients.
Russell Advocaten assists expats with matters including:
- Immigration and residence permits: Advising on the correct permit for your situation, whether as a highly skilled migrant, researcher, or entrepreneur
- Employment law: Reviewing employment contracts, advising on Dutch labour law obligations, and supporting in employment disputes
- Setting up a business: Guiding entrepreneurs through the legal steps of establishing a company in the Netherlands
- Real estate and rental: Advising on lease agreements and tenant rights for those renting a house in the Netherlands as an expat
- Contracts and liability: Reviewing and negotiating commercial agreements under Dutch law
- Family law: Assisting with cross-border family matters for international clients
Russell Advocaten is an official partner of IN Amsterdam, the expat centre of the City of Amsterdam, and is recommended by the Legal 500, an independent guide to leading law firms across Europe. The firm is also part of the Primerus network, connecting clients to legal expertise in more than 40 countries.
Whether you are preparing an Expat Scheme application, reviewing an employment contract, or seeking guidance on your rights as an international resident, the team at Russell Advocaten is available to assist. Contact Russell Advocaten to discuss your specific situation with an experienced lawyer.
This information is general in nature and does not constitute legal advice for your specific situation. For advice tailored to your circumstances, please consult a lawyer at Russell Advocaten.
Veelgestelde vragen
Can I still apply for the 30% ruling if I have already started working in the Netherlands but haven't submitted an application yet?
Yes, but timing is critical. If you apply within four months of your first working day, the scheme applies retroactively from day one. If you miss that window, the Dutch Tax Administration will only grant the benefit from the first day of the month in which they receive your application — meaning you permanently lose the tax advantage for the earlier months. If you are approaching or have already passed the four-month deadline, contact a tax or legal specialist immediately to assess your options.
What happens to my 30% ruling if I change jobs in the Netherlands?
Your existing Expat Scheme decision does not automatically transfer to a new employer. You and your new employer must submit a fresh application within four months of your first working day at the new company. There is one important exception: if your new employer belongs to the same connected group of withholding agents as your previous one, the existing decision remains valid and no new application is required. Additionally, if you start with the new employer within three months of leaving the previous one and still meet all eligibility conditions, continuity of the scheme can generally be maintained.
Does the 30% ruling affect my mortgage eligibility or other financial assessments in the Netherlands?
This is a common concern for expats. Because the 30% ruling reduces your taxable income, some mortgage lenders may base their lending calculations on your lower taxable salary rather than your full gross salary, which can affect your borrowing capacity. However, practices vary between lenders — some will take your full gross salary into account. It is advisable to discuss this explicitly with a mortgage advisor before applying for a home loan, so you understand how your Expat Scheme status will be treated.
Can my family members or partner also benefit from the 30% ruling?
The 30% ruling is granted to the qualifying employee individually and cannot be transferred to or shared with a partner or family members. However, until 31 December 2024, qualifying employees could opt for the partial foreign tax liability status, which had indirect benefits for household tax planning — particularly for partners with foreign assets. Since 1 January 2025, this option has been abolished, meaning all household members residing in the Netherlands are now fully subject to Dutch tax rules on their worldwide income and assets.
What is the most common mistake applicants make when applying for the 30% ruling?
The most frequent pitfalls are missing the four-month application deadline and submitting incomplete documentation. Specifically, applicants often underestimate the evidence required to demonstrate prior residence outside the Netherlands — such as foreign utility bills, rental agreements, or official registration records — or fail to provide adequate proof of qualifications for the reduced salary threshold. Preparing a complete and well-documented application from the outset is far more effective than trying to remedy a rejection after the fact.
I live in Belgium and have been offered a job in the Netherlands — does the 150 km rule automatically disqualify me?
In most cases, yes. Belgium shares a border with the Netherlands, so the vast majority of Belgian residents will not meet the requirement of living more than 150 km from the Dutch border for at least 16 of the 24 months prior to starting work. The same generally applies to residents of Luxembourg and many parts of Germany, France, and the United Kingdom. There are narrow exceptions — such as for returning employees who previously held a valid Expat Scheme decision — but these are assessed on a case-by-case basis. If you are in this situation, legal advice before accepting the role is strongly recommended.
Will the upcoming reduction from 30% to 27% affect me, and is there anything I can do about it?
Whether the reduction affects you depends on when your Expat Scheme eligibility began. Employees who became eligible before 1 January 2024 are protected under transitional rules and retain the full 30% tax-free allowance for their entire five-year period. For employees who became eligible on or after 1 January 2024, the maximum tax-free percentage will decrease from 30% to 27% as of 1 January 2027. There is currently no opt-out mechanism for this reduction, so it is worth factoring this change into any long-term financial planning you undertake while working in the Netherlands.
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