How does the 30% ruling in the Netherlands work

Are you a skilled migrant considering working in the Netherlands? The 30% ruling might be the key to unlocking significant tax benefits for you. In this user-friendly guide, we break down what the 30% ruling is, the actual tax benefits it offers, and how you can navigate the application process. And guess what? ADT is here to provide you with all the information you need!

Understanding the 30% Ruling: What's in It for You?

 30% ruling in the Netherlands is being reduced to 27% from January 1, 2027

This means that the employees who received the 30% ruling in 2024 or later, no transitional rules will apply. These employees will receive a maximum of 27% tax-free allowance as of 2027. The announced higher salary norm will also be applicable for this group as of 1 January 2025.

The 30% ruling is a tax advantage designed to attract skilled expatriates to the Netherlands. If you qualify, you can enjoy a tax-free allowance of 30% of your gross salary. Sounds intriguing. But let's dive into the specifics:

Tax-Free Allowance: Imagine only having to pay income tax on 70% of your gross salary. That's exactly what the 30% ruling offers—a 30% tax-free allowance, giving your finances a significant boost.

How Does It Work?

Now that you're curious about the benefits, let's discuss how the 30% ruling works:

Eligibility Criteria:  Not everyone is eligible. You must possess specific skills or expertise that are deemed scarce or unavailable in the Dutch labor market.

Joint Application: Both you and your employer need to apply for the 30% ruling. It's usually done at the beginning of your employment contract.

Duration: The ruling is applicable for a maximum of 5 years. Keep in mind that if you've had previous stays or employment in the Netherlands, this may impact the duration.

Salary Changes: Any changes in your salary or job position during the granted period may affect the ruling. It's crucial to assess and make adjustments accordingly.

Expiry and Renewal: The 30% ruling expires after the maximum period or if you no longer meet the eligibility criteria. Unfortunately, there's no option for renewal beyond the 5-year maximum.

Applying with ADT: Wondering how to navigate the application process hassle-free? ADT is here to guide you through the entire process, ensuring that you get all the potential benefits.

Let Dhi ADT Simplify Your 30% Ruling Journey

Ready to reap the benefits of the 30% ruling? ADT is your go-to partner, providing valuable information and expert assistance throughout the application process. Whether you're new to the Netherlands or considering a change in your employment terms, we've got you covered. Contact Dhi  ADT today for a smoother, stress-free experience with the 30% ruling. Your tax benefits await!