The 30% ruling makes 30% of your gross salary tax-free for up to 5 years. In 2026, it's capped at €262,000/year. The rate drops to 27% in 2027 and 20% in 2028.
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30% Ruling — Quick Answer (2026)
💰 Benefit: 30% of gross salary tax-free
⏱ Duration: 5 years maximum
📊 Cap: €262,000/year (2026)
📉 Changing: 27% in 2027, 20% in 2028
⏰ Apply within: 4 months of starting work
🔑 Key requirement: Lived 150+ km from Dutch border
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How It Works
Your employer pays 30% of your gross salary as a tax-free allowance for extraterritorial costs — the extra expenses of living abroad. The remaining 70% is taxed normally.
Example on €80,000 salary:
- Without ruling: ~€80,000 taxed at Dutch rates → ~€50,000 net
- With ruling: €56,000 taxed + €24,000 tax-free → ~€55,000+ net
- **Effective savings: ~€5,000–€8,000/year**
Who Qualifies
- Recruited from abroad or assigned to a Dutch company
- Lived more than **150 km from the Dutch border** for at least 16 of the 24 months before starting work
- Have specific expertise that is **scarce in the Dutch labor market**
- Meet the minimum taxable salary after applying the ruling
What Is Changing
The government is phasing down the ruling:
- **2026:** 30% (current rate)
- **2027:** 27%
- **2028:** 20%
Transitional rules that protected pre-2024 holders expired December 31, 2025. The income cap of €262,000 now applies to everyone.
Critical Deadlines
Apply within 4 months of your start date. If you miss this window, you lose the ruling permanently. Your employer should submit the application to the Dutch Tax Authority (Belastingdienst). Verify they've done it.
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Should You Factor the 30% Ruling Into Your Decision?
✅ Best if: You're comparing offers and NL salary seems similar to Germany/France — the ruling can add €5,000–€10,000/year to net pay.
❌ Avoid if: Your salary is under the threshold — you won't qualify for both the HSM and the ruling.
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