30% ruling: compensation for expats down to 27%

For whom? 

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

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 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 instead of €46,107 (in 2024, this amount is corrected for inflation yearly). 

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). 

When? 

The change in law will enter into effect on 1 January 2027.