| GLOBAL MOBILITY
NETHERLANDS
KEY TAKEAWAYS Purpose and eligibility: The 30% ruling in the Netherlands helps attract highly skilled foreign employees by allowing employers to pay up to 30% of salaries tax-free. To qualify in 2025, employees must meet conditions like living 150 km outside the Netherlands for 16 of the past 24 months and earning at least €46,660 annually (€35,468 for under-30s with a master’s degree).
with a qualifying master’s degree. • Place of residence: The employee must have lived more than 150 kilometers from the Dutch border for at least 16 months in the 24 months prior to employment in the Netherlands. • Duration: The maximum duration of the scheme is five years. • Application and agreements: The scheme must be requested from the Tax Authorities and requires a joint application from employer and employee. introduced from 2024: the tax-free allowance may not exceed 30% of the Top Income Standards Act, which is determined annually. For 2025, this means that the maximum salary level to determine the tax-free allowance is €246.000, meaning that the allowance is never more than €73.800. This ceiling can have an impact on expats with very high salaries. employees receive a significant portion of their income tax-free, which increases their net salary. • Flexibility: Employers can easily compete in the international labour market. • Optional exemption: Employees Ceiling for tax-free allowance An important change has been Benefits of the scheme • Lower tax burden: Foreign with the 30% ruling can choose to be considered non-resident for income tax purposes, which can be advantageous as it saves wealth tax. Unfortunately, this advantage has been taken away from the 30% ruling holder from 1-1-2025 with an exception for employees benefiting from transitional rules. For example, an employee has a gross salary package of €80.000 per year. This results in a net take home of €52.804; if the 30% ruling is successfully applied, the net take home increases to €65,082, in 5 years this is a net pay advantage of €61.390 whereas the employer saves €12.910 because of lower employee insurance contributions.
and optional non-resident tax status. A 2024 cap limits the tax-free allowance to €73,800, affecting those with very high salaries. The scheme is valid for five years, with tax-free moving allowances up to €7,750 available.
The Netherlands: 30% tax-free allowance
Criticism and future: The 30% ruling faces scrutiny for its cost, with reforms
reducing the tax-free rate to 27% by 2027. Despite this, it remains a valuable tool for attracting international talent.
Benefits and changes: Employees benefit from a reduced tax burden
Leo Oudshoorn Senior Manager Wecountancy
“The 30% ruling is intended to make the Netherlands attractive for highly qualified foreign employees.”
T he 30% ruling is a tax facility in the Netherlands aimed at foreign employees with specific expertise. This scheme makes it possible for an employer to pay out a maximum of 30% of an employee’s salary tax-free as compensation for additional costs associated with working and living in the Netherlands. In 2025, this arrangement will continue to be of interest to employers and international workers, but there are some conditions and changes to take into account. Purpose of the scheme The 30% ruling is intended to make the Netherlands attractive for highly qualified foreign employees. Moving to the Netherlands often entails additional costs, such as housing, international moves and adapting to a new culture. Important conditions in 2025 To be eligible for the 30% ruling in 2025, a number of conditions must be met: • Specific expertise: The employee must have specific expertise that is difficult to find in the Netherlands. This is often linked to a minimum salary limit, which is adjusted annually. For 2025, a limit of €46.660 per year applies, or €35.468 for employees under the age of 30
financial scheme in the Netherlands that allows employers to compensate employees who move because of their work. This compensation is exempt from taxes, provided specific conditions are met. The purpose of the scheme is to alleviate the financial burden of a work- related move. Moreover, the tax-free moving allowance can be paid on top of the 30% tax free allowance.
Conditions for tax exemption: Work-related move: The move must take place because of the employee’s job. This could be, for example, because the employee is moving closer to his or her workplace or if the move is from outside the Netherlands. Maximum amount: The amount that may be reimbursed tax-free is a maximum of €7,750 per employee and does not require substantiation of actual made costs. The tax-free moving allowance can only be applied if the employer includes this in the employment conditions. If the employer’s total salary budget exceeds the expectations, it is possible to convert a part of the gross, taxable salary in the year of the move into a net tax-free relocation allowance, resulting in more net take home salary without increasing the employer’s costs. Criticism and future Although the 30% ruling scheme is popular, it is sometimes criticised for its high costs to the government. The introduction of the ceiling shows that the scheme is becoming increasingly limited. There will likely be more discussion about further reforms in the coming years, but it is still a splendid opportunity to attract foreign skilled workforce in the Netherlands, especially since, based on the current legislation, the tax-free moving allowance will not be changed.
ABOUT US... wecountancy.com
Leo specialises in advice in the field of payroll tax, social security, labour law and work permits. International cross-border workers, application of treaties and immigration law have attracted his attention for more than 25 years. Drawing up employment benefit schemes, seeking tax-free incentives, increasing employee net profits and simultaneously freezing employer costs are part of his core business and daily activities. His clients range from multinational corporations to start-up companies and their employees come from all over the world. Leo’s professional contributions appear monthly in an expat newspaper and, by giving webinars to cross-border interested parties, he regularly introduces Wecountancy Expat Services B.V. on social media. The combination of advice in the field of taxes, social security, labour law and work permit issues give clients a unique opportunity to do what they are good at and leave expat matters to Leo and his team.
Wecountancy represents a personal approach, defined by deep involvement and genuine attention. As a trusted partner for entrepreneurs, we collaborate to find the best solutions—especially when they’re not immediately obvious. Our ideal client mirrors our values: an entrepreneur who is open to change, with a modern perspective on business and a passion for forward-thinking approaches that align with today’s fast-evolving world. Founded in 2023 through the merger of the Activa Group and the Zirkzee Group, Wecountancy combines the expertise of two established organisations united by a shared mission: helping entrepreneurs turn their passion into success.
“Moving to the Netherlands often entails additional costs”
+31 (0)71 572 49 65 leooudshoorn@wecountancy.com irglobal.com/advisor/leo-oudshoorn
Moving allowance The tax-free moving allowance is a
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