30% Ruling Eligibility Criteria in the Netherlands for Expats

Introduction to Eligibility for the 30% Ruling

The 30% ruling is a facility granted by the Dutch Tax and Customs Administration (Belastingdienst) to employees who come to the Netherlands from another country to work. It is not automatically applied and requires a joint application from both the employee and the employer. The key objective is to compensate for the extraterritorial costs (additional expenses) often incurred by foreign employees.

Meeting all criteria is essential, and failure to do so can result in rejection or withdrawal of the ruling.

1. Recruitment from Abroad (Inducement Criterion)

You must have been recruited or assigned from outside of the Netherlands by a Dutch employer. This means there must have been an "inducement" to move to the Netherlands specifically for the job.

• Prior Residence: You must not have lived in the Netherlands or within 150 kilometers of the Dutch border for more than 16 months in the 24 months prior to your first working day in the Netherlands. This is a very strict geographical and time-based requirement.
• External Hiring: You cannot have been living or working in the Netherlands and then spontaneously apply for the ruling. It implies a move specifically for the employment.

2. Specific Expertise / Salary Norm

The Dutch tax authorities deem that you possess "specific expertise" that is scarce in the Dutch labor market if your taxable salary (after applying the 30% ruling) meets a certain minimum threshold. This threshold is adjusted annually.

• Minimum Taxable Salary: For 2025 (estimate), this minimum taxable salary (70% of gross income) is typically around €36,889. This means your full gross salary must be high enough to still exceed this amount after the 30% deduction.
• Reduced Norm for Young Graduates: For employees under 30 years old who hold a Master's degree, a lower salary norm applies, usually around €28,041 (2025 estimate).

3. The 150-Kilometer Rule

This is a strict geographical requirement and is often misunderstood. For at least 16 months in the 24 months immediately prior to your first working day in the Netherlands, you must have lived more than 150 kilometers from the Dutch border. This means that living just across the border (e.g., in parts of Belgium or Germany) prior to your move would typically disqualify you.

4. Valid Employment Contract

You must be employed by a Dutch employer who has an income withholding obligation (i.e., they are required to withhold wage tax). This typically means a formal employment contract. The ruling is specifically tied to the employment relationship.

Timeline and Duration

• Maximum Duration: The 30% ruling is granted for a maximum period of 5 years. Any periods of prior employment or residence in the Netherlands within the last 25 years can reduce this maximum duration.
• Application Deadline: The application for the 30% ruling must be submitted within 4 months of your first working day in the Netherlands. If submitted later, the ruling will only apply from the first day of the month following the application.
• Validity: The ruling ceases when your employment ends or if you no longer meet the salary norm (e.g., due to reduced working hours or a salary decrease).