FRECUENTLY ASKED QUESTIONS
30% Ruling in The Netherlands
This tax deduction has to be requested from the tax authorities in the Netherlands, and can only apply to qualified migrants who have been hired from another country by Dutch companies. In most cases, your employer applies the 30% ruling for you and in an average of 6 to 10 months, you can have an answer if they approve the benefit.
This tax credit is applied to the salary of the qualified migrant who has been hired from abroad by a Dutch company. The employee is exempt from 30% of taxes on his salary, including offshore expenses.
One of the objectives of the 30% is to attract qualified migrants from other countries and be able to fill the jobs that have not found qualified employees in the country.
Offshore costs include:
– Additional living costs, because the price in the Netherlands is higher than in the country you come from, such as expenses for meals, gas, water, and electricity
– Costs of a familiarization trip to the Netherlands, such as looking for a house or a school
– Fees for applying for or converting official personal documents, such as residence permits, visas, and driving licenses.
– Costs of medical examinations and vaccinations for the stay in the Netherlands
double housing costs if you continue to live in your country of origin, – Hotel expenses
– Housing costs (initial)
– If you receive housing, only (first) housing costs that exceed 18% of current employment wages are offshore costs. The rest of the costs are salaries.
– Storage costs for the part of the inheritance that you are not going to transfer to the Netherlands.
– Travel expenses to your country of origin, e.g. for family visits or family reunions
– Additional costs for completing the income tax return, if this is more expensive than having the return completed by a comparable tax advisor in your home country. Here a maximum of €1,000 applies.
– Language training costs for you and your family members staying with you additional (non-commercial) calling charges to call your home country.
– The costs of a social security exemption application, such as an A1 or E101 certificate of coverage
– Expatriate allowances, bonuses, and similar allowances (overseas service bonus, expatriate allowance, foreign allowance)
– Capital losses
– Costs of buying and selling a home (reimbursement of home purchase expenses, broker fees)
– Compensation for higher tax rates in the country of employment (tax equalization)
If you come to work in the Netherlands, you also have specific experience that is not found or hardly found in the Dutch labor market and a confirmation by the Belastingdienst, you can make use of this benefit.
- You are a paid employee.
- You were hired outside of the Netherlands by a Dutch company.
- You have a specific or highly qualified experience that is not found or hardly found on the Dutch labor market, if you are considered a skilled migrant.
- Be a resident more than 150km from the Dutch border, at the time of being hired.
For all decisions issued from January 1, 2019, will be valid for a maximum of 5 years.
If your decision was issued between January 1, 2012, and January 1, 2019, then it has a maximum duration of 8 years, but due to a transitional arrangement, the end date of this decision may no longer be correct. and soon you will receive a new decision.
Your salary, excluding the Dutch tax-free allowance, must be more than:
€39,467 in 2022
€38,961 in 2021
€38,347 in 2020
If you are under 30 and have a master’s degree in the Netherlands or have obtained an equivalent degree in another country, then your salary, excluding Dutch tax-free allowance, must be more than:
€30,001 in 2022
€29,616 in 2021
€29,149 in 2020
To make use of the 30% ruling you must live more than 150 kilometers, as the crow flies, from the Dutch border for more than 16 months in the 24 months before your first working day in the Netherlands.
You are not allowed to have lived in Belgium, Luxembourg, and parts of Germany, France, or the UK.
In that case, you can always make use of the 30% facility. The amount of your salary is not important.
You can make use of the 30% ruling benefit if, in the 24 months before the start of your Ph.D. research in the Netherlands, you lived more than 16 of the previous 24 months within 150 kilometers, as the crow flies, of the Dutch border.
During your doctoral research, between obtaining your doctorate and starting your work in the Netherlands, you are allowed to have lived in the Netherlands, or within a radius of 150 kilometers from the Dutch border.
You can keep a 30% ruling, even if you change jobs. Once you have confirmed the 30% ruling decision, you can continue with the next Dutch company with which you have an employment contract, however, this transition period cannot exceed 3 months, otherwise, you will request the benefit. The maximum time that this benefit can have is for a maximum of 5 years, adding up all the companies with which you have remained with a 30% ruling.
Yes, it is possible to apply, but it depends a lot on the time you have applied. If you apply within 4 months after you started working for your new employer, then you can use the 30% benefit ruling from the first day of work at your new employer, meaning the benefit is considered retroactively.
All decisions issued from January 1, 2019, are valid for a maximum of 5 years.
For decisions issued between January 1, 2012, and January 1, 2019, they are valid for a maximum of 8 years, however these decisions are being corrected up to a maximum of 5 years, so it is advisable to review the final decision .
You can opt for partial foreign tax liability in the income statement, if you live in the Netherlands and make use of the 30% facility. So, you are a non-resident taxpayer for your taxable income from substantial interest, box 2, and your taxable income from savings and investments, that is, box 3.
You can be a partial nonresident taxpayer from the first day of the calendar year in which you decide to do so, but not before the first day you use the 30% ruling benefit.