The Everchanging 30%-Ruling: Here’s What You Need to Know

The 30%-ruling has seen some significant changes recently, with more on the way. If you’re an employer or an employee affected by this tax benefit, keeping up can be a challenge. That’s why we’ve put together this simple summary of what’s changed, what’s coming, and how you can prepare. 

Recent Changes in a Nutshell 

1. Salary Cap Introduced (2023) 

Since January 2023, the 30% ruling only applies to salaries up to € 233,000 (this will increase to € 246,000 in 2025). Any income above this cap doesn’t qualify for the tax-free allowance.

2. The 30/20/10 Rule (2024) will not apply

From January 2024, the tax-free allowance was supposed to decrease over the five years of the ruling: 

  • 30% tax-free for the first 20 months, 
  • 20% for the next 20 months, 
  • 10% for the final 20 months. 

This sparked a lot of criticism from employers and employees alike, as it would reduce net salaries and increase costs. Fortunately the changes were scrapped. Instead: 

  • The 30% allowance stays the same for 2025 and 2026. 
  • From 1 January 2027, the benefit will drop slightly to a flat 27% allowance

This decision simplifies the system and keeps the Netherlands competitive for skilled workers.

3. Higher Salary Norms Ahead 

To qualify for the 30%-ruling, employees must meet certain salary thresholds, which are going up: 

  • Minimum taxable salaries in 2024: € 46,107 (or € 35,048 for those under 30 with a master’s degree). 
  • Minimum taxable salaries as from 2025: € 46,660 (or € 35,468 for those under 30 with a master’s degree). 
  • New proposed minimum taxable salaries as from 2027: At least € 50,436 (or € 38,338 for those under 30 with a master’s degree, probably plus an inflation correction. 

These stricter norms aim to target highly skilled professionals but may make it harder for some to qualify. 

4. No More Partial Non-Resident Taxpayer Status (2024) 

Employees benefiting from the 30%-ruling will lose the option to be treated as partial non-residents for tax purposes. 

  • If you applied for the ruling before 2024, this change will take effect on 1 January 2027 (or earlier if your ruling ends before then). 
  • If you applied for the ruling in 2024 (for the first time), this change kicks in on 1 January 2025

What does this mean? It means that all your worldwide income, including investments and shareholdings, will become taxable in the Netherlands. 

How the Transitional Rules Work 

Here’s a quick look at how the new rules will affect you, depending on when your ruling started 

If your ruling started before 2024:  

  • You keep the full 30% allowance and current salary norms for the entire ruling. 
  • Partial non-residency status ends on 31 December 2026 (or earlier if your ruling expires sooner).  

If your ruling started in 2024: 

  • You’ll get the 30% allowance until 2026, then 27% from 2027 onward.
  • Partial non-residency ends on 1 January 2025

If your rulings starts after 2024

These changes will affect employees and employers in several ways: 

  • Lower Net Income: From 2027, the 27% allowance means less tax savings for employees. 
  • Higher Employer Costs: Companies offering tax-equalized packages may need to adjust budgets. 
  • More Tax Obligations: Employees will need to report and pay taxes on worldwide income, which could mean more complex tax returns. 
  • Administrative Adjustments: Employers need to stay on top of the evolving salary norms and new rules. 

  How to Prepare 

  • Review employment contracts and tax arrangements now to plan ahead. 
  • Keep an eye on updated salary norms to ensure eligibility. 
  • Understand how the loss of partial non-residency will impact your tax situation. 
  • Be ready for the transition to the 27% allowance in 2027. 

We’re Here to Help 

Changes like these can feel overwhelming, but you don’t have to navigate them alone. Our team can help with everything from superfast and efficient 30%-ruling applications to payroll advice and personal tax planning. We’re here to make the process simple, fast, and stress-free. 

Reach out to us today—we’d be happy to help!