As a working migrant in the Netherlands, you can hack the Dutch tax system. Have you ever heard about the 30% ruling in the Netherlands? It’s a way to gain some expat benefits in the Netherlands. In this article, we’ll cover everything you need to know about the 30% ruling eligibility.
About the taxation in the Netherlands for expats
30% ruling in the Netherlands
Other expat benefits in the Netherlands
About the taxation in the Netherlands for expats
Before discussing the 30% ruling in the Netherlands, let’s understand the local taxation system. The most common taxes are:
Income tax in the Netherlands
The Netherlands follows a progressive tax system, meaning that the more you earn, the more you pay the government. Tax rates in 2025 are as follows:
| Income, EUR | Tax rate, % |
|---|---|
| up to 38,441 | 35.82 |
| from 38,441 to 76,817 | 37.48 |
| from 76,817 | 49.50 |
Expats income tax rates in the Netherlands are the same. However, to attract a qualified workforce, the country offers unique tax benefits for expats in the Netherlands. One such is the 30% ruling, which we’ll cover later.
While working and earning in the Netherlands, remember to support your loved ones back home with fast and beneficial Profee transfers.
National insurance contributions
A part of your salary goes to the national insurance contributions. TThis money will be paid back to you in the case of unemployment, retirement, having a child, and other situations when you have an official right not to work or work less. The Dutch tax system aims to provide a safety pillow for its citizens in an emergency.
Rates are defined two times a year and may differ depending on various factors, such as your employer. You can check the up-to-date information on this website. It’s all in Dutch, though, so be ready to spend some time translating the pages if you don’t know the language yet.
If you’re an employee, the company pays national insurance contributions and income tax in the Netherlands on your behalf. If you’re self-employed, you must pay taxes by yourself. One of the important deadlines to remember — digitally file your income tax return before May 1st each year.
30% ruling in the Netherlands
What is the 30% tax exemption in the Netherlands?
This is compensation that expats can receive as support for their relocation. With government funding, businesses may cover employees’ extraterritorial costs or pay a non-taxable salary to you, which means it will be 30% higher.
What is the period for the 30% tax exemption in the Netherlands?
You can use the 30% ruling in the Netherlands for up to five years.
What are the 30% ruling eligibility criteria?
Let’s see if you have a chance to receive this expat benefit in the Netherlands. To apply for the 30% ruling in 2025, you must:
- Be employed by a company that operates in the Netherlands;
- Be a highly skilled migrant. You should complete professional training and have a university degree.
- Meet the income requirements that are listed here.
- Before moving to the Netherlands, you should have lived at least 150 kilometres away from the borders. But only for 16 months out of 24 months prior to your relocation.
Every rule has exceptions; it applies to the 30% ruling eligibility, too. For example, if you’re conducting research or are completing doctoral training, the income criterion does not apply to you.
How to apply for the 30% ruling in the Netherlands?
Receiving 30% tax benefits for expats in the Netherlands is a collaborative process between you and your employer, as you cannot apply solely by yourself. Contact your company and follow these steps:
- Ensure eligibility.
- Decide in which form you’d like to receive the benefits.
- Complete the application form on the official website .
- Submit the application to the Dutch Tax Administration (Belastingdienst) as soon as possible.
- Wait for up to eight weeks for the approval.
- Adjust your payroll and enjoy expat benefits in the Netherlands.
Now you know how to apply for the 30% ruling in the Netherlands. It’s not complicated but time-consuming, so be patient and work closely with your employer. As locals, they should be helpful with explaining the 30% ruling in 2025 to you.
Changes in the 30% ruling
You can skip this section if you have already started using your 30% ruling before January 1st 2024. For others, let’s explore the changes
- Deduction from 30% to 27%. You’ll receive 30% in 2025 and 2026, but the benefit will be reduced to 27% starting from 2027.
- Since January 1st, 2024, the 30% ruling can only be applied to a capped amount, known as the maximum remuneration.
- Starting January 1st, 2025, foreign employees benefiting from the 30% ruling are no longer eligible for partial foreign tax liability. It affects the expat income tax in the Netherlands.
What if I change the job?
When changing positions but not leaving the company, you shouldn’t submit a new application. However, you must start the process from scratch again when changing employers. In most cases, you won’t lose the benefit, but it’ll take some time to complete the application and wait for approval.
Other expat benefits in the Netherlands
There are social and tax benefits for expats in the Netherlands that you need to know about.
Moving expenses
If you are invited to relocate as a part of your job offer, your employer may provide financial support for:
- Plane tickets;
- Delivery costs;
- Visa and other documentation fees;
- School fees for your children;
- Extra housing expenses.
This is not obligatory for a company, but if you ask, you may receive some funds for relocation. The company should also explain the taxation in the Netherlands for expats. So contact your HRs and ask them about expat income tax in the Netherlands and some pitfalls of the system that you need to keep in mind.
Child benefits and allowances
Even if you’re an expat with a child, you can receive it once registered as a person living on the country’s territory. Child benefits are paid quarterly; the total sum depends on your child’s age.
| Age | Amount paid, EUR |
|---|---|
| 0-5 | 286.45 |
| 6-11 | 286.45 |
| 12-17 | 409.21 |
To receive the funds, you have to meet several criteria, such as:
- Holding a resident permit;
- A child must be registered at your address;
- You must pay at least a part of childcare costs
The complete list can be found on this website
Healthcare benefits
Everyone in the Netherlands must obtain Dutch health insurance. To avoid paying the full price, you, as an expat, may apply for healthcare benefits. You should be over 18 years old and have an income that is not “too high.” This is the official quote, so the level of earnings is not set. You can submit a form online; learn how here.
How to benefit from overseas transfers?
As an expat, you not only have to deal with the bureaucracy but also find ways to send money back home without spending a fortune on it. For savvy and smart migrants, Profee offers beneficial remittances from the Netherlands to over 90+ destinations globally.
- Low fees and unmatched exchange rates to take care of your wallet.
- Safety to ensure that your data is protected and funds arrive at their destination.
- Speed. The transfer will take several minutes, so you won’t waste time and can spend the day exploring the Netherlands and local culture (read how to plan a trip on budget here).
- Convenience. You can send money from home, park, work, train or everywhere else. All you need is your phone and internet access.
- It’s easy for the recipients. They don’t need to download any apps or go to banks. The funds will arrive automatically, so they can start spending them immediately.
Try Profee out today and see that your life in the Netherlands can be even more stress-free and pleasant.
Conclusion
In this article, we highlighted key aspects of the Dutch tax system and explored the 30% ruling in the Netherlands. Shortly, the 30% tax exemption in the Netherlands is an expat benefit, which you can get if you collaborate with an employer. Receiving it will help you to manage your budget better. Check if you’re eligible and submit the application for a higher salary for 5 years or get financial cover for your relocation expenses. After you deal with this, send money back home with secure Profee transfers.
