New alert: 30% Ruling Denied for Employee on Search Year Visa

A recent court case has confirmed that employees living in the Netherlands on a search year visa after completing their studies are in some cases not eligible for the 30% ruling tax benefit. 

What’s the case?

An Indian national moved to the Netherlands in September 2019 for his studies. His family joined him in June 2020. After graduating in September 2020, he remained in the Netherlands on a search year visa and worked for several employers. On November 24, 2021, he signed an employment contract with a Dutch employer.

What did the court decide?

The Noord-Holland District Court ruled that the employee did not qualify for the 30% ruling. The decision was based on the fact that he was already living in the Netherlands (and was considered a tax resident of the Netherlands) when he signed the employment contract. The court emphasized that he had established a durable connection to the Netherlands, disqualifying him as an incoming employee (also known as the ‘hired from abroad’ requirement) under the 30% ruling criteria.

Why does this matter?

This case highlights the importance of analyzing all requirements before submitting a complex application for the 30% ruling. Employers and employees should carefully review the conditions before applying.

Key takeaway

If you’re considering applying for the 30% ruling for yourself or your employee, ensure you meet all the requirements. Dutchtaxadvice.nl has extensive experience with all types of complex 30% ruling applications. If you need assistance with the application or simply wish to check the eligibility for it, you can always reach out to us at info@dutchtaxadvice.nl  or complete our contact form on our website, and one of our experts will be happy to help you!

For more details, check out the court’s full ruling:

  • Noord-Holland District Court, August 19, 2024 (published January 14, 2025), ECLI:NL:RBNHO:2024:10994, HAA 23/2905