30% ruling: compensation for expats down to 27%

What changes?

Are you an employer? And do you hire highly skilled migrants to work for you in the Netherlands? Or do you post employees with a specific skill abroad? The tax advantage of the 30% ruling (expat ruling) will go down. It will be 27% from 2027. And the wages you pay your employee must meet a higher standard (inkomensnorm ) to be able to use the expat facility.

The 30% ruling enables you to give your foreign or posted worker a tax advantage, to help meet costs for moving or a higher standard of living. You can pay part of the wages tax-free when you use this facility. You and your employee must meet the criteria of the 30% ruling.

The exact changes in your situation depend on the date on which you started using the 30% ruling for your employee.

If the 30% ruling started before 1 January 2024:

• You can pay your employee a maximum of 30% of their wages tax-free for 5 years. The income standard remains €46,107 (in 2024, this amount is corrected for inflation yearly).

If the 30% ruling (expat ruling) started after 1 January 2024:

• In 2024, 2025, and 2026, you are allowed to pay your employee a maximum of 30% of their wages tax-free. The income standard remains €46,107 (in 2024, this amount is corrected for inflation yearly).
• From 1 January 2027 you may pay your employee a maximum of 27% of their wages tax-free. The income standard is increased to €50,436.

Please note: A different income standard to be eligible for the expat ruling applies to employees aged under 30 with a master’s degree. The current standard of €35,048 will also be increased on 1 January 2027: to €38,388 (this amount is corrected for inflation yearly).

For whom?

• Entrepreneurs who hire highly skilled foreign workers.
• Entrepreneurs who post workers with a specific skill abroad.

When?

The change in law is expected to enter into effect on 1 January 2025.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.

Do you think government rules are unclear?

Do the rules create unnecessary administrative burdens? Or do you know how the rules could make doing business easier? You can report this (anonymously) to the Regulatory Reporting Centre (Meldpunt regelgeving).