30% Ruling Netherlands 2026: How It Works, Salary Norms and the Move to 27% in 2027

The 30% ruling is one of the best-known perks of working in the Netherlands as an international. It lets your employer pay part of your salary tax-free to cover the extra costs of moving here. The Belastingdienst (Dutch Tax Administration) now calls it the Expat Scheme (expatregeling), and it is changing: the rate falls to 27% from 2027 for many people. This guide explains how the ruling works in 2026, who qualifies, the salary norms and cap, and what the 2027 changes mean for you.

How the 30% Ruling Works

Under the ruling, your employer can pay you a tax-free allowance for 'extraterritorial costs', the extra costs of working away from your home country, without you having to prove what you actually spent. In 2026 the maximum is 30% of your salary including the allowance. The rest of your salary is taxed as normal.

Your employer is not obliged to give you the full 30%. They may offer less, or none at all, so agree it in writing before you sign your contract. The ruling lasts a maximum of five years, reduced by any earlier periods you lived or worked in the Netherlands.

Who Qualifies

• Recruited or seconded from abroad: You must be hired from outside the Netherlands, or sent here by a foreign employer.
• The 150 km rule: In the 24 months before your first working day in the Netherlands, you must have lived more than 150 km from the Dutch border for more than 16 months. This excludes most people moving from Belgium and nearby parts of Germany.
• Specific expertise: This is tested mainly through a salary norm (see below). In rare sectors where almost everyone meets the norm, a scarcity test can also apply.
• A decision from the Belastingdienst: You and your employer apply together, and the tax authority must approve it before the allowance can be paid tax-free.
• A Dutch employer or one that withholds Dutch wage tax: The ruling runs through your employer's payroll.

2026 Salary Norms and Cap

The salary norm is based on your taxable salary, meaning your salary after the tax-free allowance has been taken off. This catches many people out.

The cap is linked to the public-sector pay ceiling under the Senior Officials in the Public Sector (Standards for Remuneration) Act (WNT). From 2026 it applies to everyone using the ruling, including people whose ruling began before 2023 and who previously benefited from transitional rules.

A quick example

Suppose your total gross salary is €80,000 in 2026 and your employer applies the full 30%. Your tax-free allowance is €24,000 and your taxable salary is €56,000. Because €56,000 is above the €48,013 norm, you qualify. To use the full 30% and still meet the general norm, your total salary needs to be at least about €68,600 in 2026. On a lower salary, the employer can pay a smaller tax-free percentage so your taxable salary stays above the norm.

What Changes in 2027: 30% Becomes 27%

The changes were set by law in the 2025 Tax Plan (Belastingplan 2025) and, according to official government business information, take effect on 1 January 2027.

The exact indexed 2027 norms and the 2027 WNT ceiling are published by the government around the turn of the year. Tax advisers have reported a 2027 WNT ceiling of €273,000, which at 27% would give a maximum allowance of €73,710, but confirm the final amounts on belastingdienst.nl before you rely on them. The drop to 27% does not restart or extend your five-year period.

How to Apply

1. Negotiate the ruling into your offer, including the percentage, before you sign your employment contract.
2. Check you meet the 150 km rule and that your taxable salary after the allowance will be above the norm.
3. Register with your municipality and get your BSN, the citizen service number your employer needs for payroll.
4. Apply jointly with your employer to the Belastingdienst using the official application form.
5. Apply within four months of starting work. If you do, the decision applies from your first working day. If you apply later, it only applies from the first day of the month after the application.
6. Keep your salary above the norm each year. If your wage falls below the indexed norm in a year, the ruling lapses retroactively from 1 January of that year.

Side Effects to Know About

• Lower taxable salary: Some benefits and entitlements that depend on taxable income, such as certain employee insurance benefits and possibly pension accrual, may be based on the lower figure. Ask your employer how their pension scheme handles it.
• Partial non-resident status: The old option to be treated as a non-resident for savings and investments (boxes 2 and 3) has been abolished, with only a limited transitional period for people who already used it. Do not assume it applies to you.
• Changing jobs: The ruling can continue with a new employer if you switch within three months and the new job also qualifies. The new employer must apply again.

Mistakes to Avoid

• Checking the gross salary against the norm: The test uses taxable salary after the allowance. A €60,000 package with the full 30% leaves €42,000 taxable, which is below the 2026 norm.
• Applying too late: Miss the four-month window and you lose the tax-free benefit for the months before your application.
• Assuming it is automatic: No employer has to offer it. Get the percentage in your contract.
• Counting on 30% after 2026: If your ruling started in 2024 or later, plan your budget on 27% from January 2027.
• Paying for 'guaranteed' approval: Some online services promise a guaranteed ruling for an upfront fee. Only the Belastingdienst decides, and your employer must be part of the application.

Final Thoughts

The 30% ruling remains a valuable benefit in 2026, worth up to €78,600 a year for top earners and several thousand euros for many mid-level professionals. But it is changing: if your ruling began in 2024 or later, the maximum falls to 27% in 2027 and the salary norm rises. Negotiate it before you sign, apply within four months and keep an eye on the norm every year.

Frequently Asked Questions

Disclaimer: This article is general information only and is not tax advice. The rules, norms and caps for the Expat Scheme change every year, and some 2027 amounts are still to be confirmed. Always check belastingdienst.nl and speak to your employer or a qualified tax adviser before making decisions.