Inside the Netherlands's 30% Tax Ruling for Expats
The Dutch government will keep the expat tax discount at 30% for 2026, with new minimum salary requirements of €48,013 for general applicants. Starting in 2027, the benefit will decrease to 27% and feature higher income thresholds for eligibility.
Inside the Netherlands's 30% Tax Ruling for Expats
The Netherlands continues to offer one of Europe's most attractive financial incentives for skilled professionals through its 30% tax ruling. This policy allows eligible expats to receive 30% of their gross salary tax-free, significantly increasing take-home pay for those relocating to Dutch cities. While recent political debates suggested more aggressive cuts, the current framework maintains the 30% rate throughout 2026 before a slight reduction to 27% starting January 1, 2027.
Who qualifies for the benefit
This tax break is specifically designed for employees recruited from abroad who possess expertise that is scarce in the local labor market. To qualify, you must be in a formal employment contract with a Dutch company; unfortunately, this means self-employed digital nomads and freelancers generally do not qualify unless they operate through a Dutch payroll umbrella.
Key requirements for 2026 include:
- An annual salary of at least €48,013 (or €36,497 for those under 30 with a master's degree).
- Living more than 150 kilometers from the Dutch border for at least 16 of the last 24 months prior to hiring.
- A valid decision from the Dutch Tax Administration, which usually takes about eight weeks to process.
Important changes and deadlines
If you were hired before January 1, 2024, you are "grandfathered" into the original rules and will keep the full 30% rate for your entire five-year eligibility period. For everyone else, the rate stays at 30% through 2026 but will automatically drop to 27% in 2027.
Additionally, the "partial foreign tax liability" benefit has been phased out. While older applicants have transitional relief through their 2026 tax returns, newer arrivals can no longer opt for non-resident status regarding savings and investment taxes.
How to apply
You and your employer must submit a joint application to the Belastingdienst. To maximize the benefit, your gross salary must be high enough that your remaining taxable income stays above the minimum threshold after the deduction is applied. For most applicants in 2026, this means a gross salary of at least €68,590 is required to utilize the full 30% allowance.
Stay informed on the latest nomad news to track further shifts in European tax policy.
Read our full Netherlands guide for the complete picture.