What is the 30 Percent Ruling?
The 30 percent ruling is a tax benefit for expats who move to the Netherlands to work. This ruling helps cover extra costs, like housing and travel, that you might face while living in a foreign country. At Voorwaarts Tax Advisors, we focus on helping expats with tax advice, including the 30 percent ruling.
Who Can Get the 30 Percent Ruling?
To qualify for the 30 percent ruling, you need to meet these conditions:
- Moved from Abroad: You must have lived in another country before starting your job in the Netherlands.
- Special Skills: You must have specific skills that are not easily found in the Dutch job market. You’ll need to prove this in your application.
- Dutch BSN Required: You need a Dutch (BSN) for tax purposes, as the 30 percent exemption applies to your gross income.
Benefits of the 30 Percent Ruling
The 30 percent ruling offers several advantages, such as:
- Tax-Free Income: You can receive a tax-free allowance of 30 percent of your salary.
- Tax Exemptions: Income from savings and investments is exempt from tax (except for domestic real estate).
- Dividend Exemptions: Dividends from major shareholders are tax-free, except for direct shares in a Dutch company.
- Practical Perks: The ruling simplifies getting a Dutch driver’s license and provides other benefits.
Recent Changes to the 30 Percent Ruling
In 2012, some rules changed, which brought both limits and new options:
New Limits:
- The maximum time you can receive the ruling is now 8 years instead of 10 years.
- If you have lived or worked in the Netherlands in the last 25 years, those years count against your eligibility.
- Dutch citizens need to have lived and worked abroad for at least 25 years to qualify as expats.
- People living within 150 km of the Dutch border for two-thirds of the last 24 months do not qualify.
New Opportunities:
- The requirement for special skills now has a minimum salary of €35,000 taxable income (about €50,000 including the tax-free part).
- Young PhD graduates can get the ruling right after finishing their PhD, without needing to be recruited from abroad, and they have a lower minimum salary of €26,605.
- Research scientists do not need to meet the salary requirement.
Contact Us!
For more information about the 30 percent ruling and how we can assist you, please reach out to us today. Let’s work together to make your move to the Netherlands smooth and beneficial.