EnErgo*

Did you know you can have 30% of your salary untaxed in the Netherlands? I talk with professionals outside the Netherlands every day, and most of them don't know that they could have 30% of their salary untaxed for the first five years here. Here’s everything you need to know if you’re thinking about making the move. Sooo, what is the 30% ruling? The 30% ruling is a unique tax incentive for foreign workers with specialized expertise who work in the Netherlands. This allows employers to pay 30% of your salary tax-free, meaning you only pay tax on the remaining 70% of your gross income. This is a great help from the Dutch government to make relocating more financially appealing. How to apply? The 30% ruling is available to employees who meet the following criteria: Highly skilled migrant: You must have a job with a salary that meets the Dutch government’s minimum requirement (currently about €46,000  per year, or €35,000 for younger or highly educated candidates). Specialized expertise: The position should require skills or expertise that are in shortage or considered valuable in the Netherlands. Living abroad: You must have lived more than 150 km away from the Dutch border for at least 16 of the last 24 months before starting your job in the Netherlands. Benefits of the 30% Ruling Tax-free Income: 30% of your salary is tax-free, which can significantly increase your disposable income. Expat Benefits: The ruling includes other perks, such as exemptions on certain international school fees, the possibility to bring family members, and more. Simplified Taxation: As a highly skilled migrant, you may also qualify for deductions on costs related to moving and settling in the Netherlands. Good to know: The 30% ruling is granted for a maximum period of 5 years. However, depending on your circumstances, the duration may be shorter. Initially, it’s granted for 4 years, but it can be extended by another year in certain cases (e.g., if your job is in a shortage occupation or you’re transferring from a related company). How to apply: To apply for the 30% ruling, your employer must submit the application on your behalf to the Dutch tax office (Belastingdienst). The process can take several weeks, so it’s best to apply as soon as possible once you start working in the Netherlands. Currently, there are discussions about restructuring the 30% ruling, with potential changes for the horizon- but that’s a topic for a future post! In short, the 30% ruling can provide substantial tax relief and help ease the financial transition to living in the Netherlands. Whether you’re working in tech, healthcare, engineering, or another field in high demand, this benefit can make your expat experience even more rewarding. If you're considering moving to the Netherlands for a new job opportunity, ask your employer about the 30% ruling and start your adventure with a tax break! Do you have any questions? Hit me up and let’s talk!