Shorter duration for the 30 percent-ruling

8 March 2020

The Council of Ministers (Ministerraad) has agreed to the proposal put forward by the State Secretary of Finance (staatssecretaris van Financiƫn) to shorten the duration of the so-called 30% Ruling from eight to five years as of 1 January 2019.

Portretfoto van Clea Cremers
Written by:
Clea Cremers Senior tax advisor
Young people who have just moved to the Netherlands

Provided a number of specific conditions are met, employers may pay a maximum of 30% of the salaries of their expat employees working temporarily in the Netherlands tax free. The ruling is designed to compensate the additional expenditure, such as travelling and housing costs, and living expenses, that these people incur in order to be able to work in the Netherlands.

The maximum length of time in which people qualify under the ruling as new arrival employees is currently eight years. The duration of the ruling is expected to be cut back to five years as of 1 January 2019.

At present, it does not seem likely that a transitory allowance will be made for people who already benefit from the ruling.

Would you like to know more about the 30% Ruling? Our specialist would be pleased to help you!

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