The future of the 30% ruling in the Netherlands was uncertain. Dutch government has announced on Prinsjesdag that the ruling will stay yet will change once again. We think, compared to the situation in 2024, most of the changes come for the better. However, fewer people will be eligible for the ruling starting per 2025.
Background
The 30% ruling is a Dutch tax advantage for highly skilled employees who were hired abroad and relocated to the Netherlands. Employers can pay up to 30% of their salary as a tax-free allowance for up to 60 months (or five years).
A reduction of the 30% ruling (known as the ’30-20-10 scheme’) was implemented per 2024. This reduction will be reversed. The reversal is welcome news for companies and their international employees. The 30-20-10 scheme created additional administrative burdens and uncertainty.
What this means:
- Less paperwork and simpler processes for HR departments
- Greater clarity and stability for international employees
- Improved ability for Dutch companies to attract and retain global talent
The future of the 30% ruling
However, there will be changes, the main points are:
- The percentage is dropping from 30% to 27% in 2027
- Salary thresholds are increasing
- People already using the ruling before 2024 get to keep their current terms.
In more detail:
More info?
Do you wish to receive more info on the 30% ruling? Anyw Netherlands assists hundreds of employees and their employers with their 30% tax ruling applications per year. Do you want to know how? Please send us a note on info.nl@anywr-group.com!
