30% tax ruling

If you come to work in the Netherlands, you are possibly confronted with extra costs, so-called extraterritorial costs. Your employer may grant you a free (untaxed) reimbursement for the extraterritorial costs that you incur. Your employer may also provide you with 30% of your wage, including reimbursement, tax-free. This facility is known as the 30%-facility and the application is done by your employer at the tax authorities.

The 30% facility applies to you if you were recruited outside of the Netherlands or seconded from a country other than the Netherlands to work in the Netherlands. Conditions including the following will apply to making use of the 30% facility:

  • You have an employment relationship.
  • You have specific expertise that is not or is only barely available on the Dutch employment market.
  • You have a valid decision.
  • In the 24 months prior to your 1st day of work in the Netherlands you live more than 150 kilometres in a straight line from the Dutch border.

There are exceptions to the 24-month term and for people who are PhD candidate. For more information, please check the website of the Tax Administration

The 30% tax ruling has some other benefits of which one is an easier process of exchanging your drivers license to a Dutch license. More information can be found here.