30% ruling for highly skilled migrants

This means one 30% of your gross salary is paid to you tax-free. 70% of your salary on which you will be taxed. The 30% is paid to you as compensation for costs that you as an expat would not have had if you had stayed at home (the “extraterritorial costs”).

As if that were not enough, any international school fees that your employer pays in the Netherlands will also be tax free.

There is one important thing to remember: it is only valid for five years and as long as you continue to meet the criteria. Payingit International can handle the complete application for you!

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Annelot Zietse, Annelot Zietse

You must meet certain criteria to eligible for and to apply the 30% ruling:

You are hired from abroad or are being stationed in the Netherlands.

You have a specific expertise that is not directly available on the Dutch labor market.

Your salary meets a minimum level. You can find the income requirements here.

You have to live at least 150 km away from the Dutch border and want to move here.
Payingit International submits the application for you. We are the payroll company you are affiliated with in the Netherlands. It takes some work and usually it takes a while for the application to be processed. Keep in mind that it is important to deliver everything within four months of your labor agreement’s start date. If your application is submitted more than four months after you started, you will not get the full benefit.
Employers benefit from a significant cost reduction and are therefore generally happy to work with you to apply for the 30% ruling for you. Instead of handling expense reports from you – this is a lot of administration – they can apply the 30% ruling.
In addition to whether you meet the conditions for the 30% ruling, you must also meet the following conditions:

You (both the employee and your employer) must have received a ruling letter from the tax authorities, as proof that the 30% compensation can be applied. The maximum term is five years.

Specific expertise must be evaluated and approved by the Dutch tax authorities. The Tax and Customs Administration looks at:

– the employee’s level of education;

– relevant work experience (two and a half years in a comparable position is considered sufficient);

– whether your salary is high enough to prove your expertise;

– you have to earn a certain minimum wage. This level is determined annually by the Tax and Customs Administration. There is one salary level for people under the age of 30 and another for people over the age of 30. Click here for the current salary standards for the 30% ruling;

– you must have lived for at least two-thirds of a period of 24 months at least 150 kilometers from the Dutch border before you started your job in the Netherlands;

– final condition: An employer may reimburse a maximum of 30% of the salary, including the allowance, tax-free.
Payingit International will handle the application from A to Z. We have a list of documents that you need to provide us with, so that we can finalize the application for you. Apart from that you can lean back and let us do the work. We charge a fee for the registration process, which we discuss with you in advance.

The current salary standards for the 30% facility can be found on our website. We update these figures whenever we receive new information from the tax authorities and inform you about them if necessary.

We advise you to see what effect the 30% ruling has on your salary. You can use the Payroll Calculator on our website for this. This information is very valuable for you to know and it will help you make your stay in the Netherlands a success. If you have any other question, you can always call us or fill in our contact form and we will get back to you within 24 hours.

Payingit International

Recognized IND sponsor and certified partner
In-depth knowledge of Dutch labor and tax law
Extensive partner network in regards to relocation, housing and legal advice

Who are we?

Payingit International provides payroll and employment solutions. umbrella company and recognized IND sponsor. We take over the responsibility of the employment, so that expats have the freedom to work for whichever company they want. As an employer this gives you the freedom to focus on your core business. We have our clients’ and employees well-being as our number one priority. We work with the knowledge that every employment is different and that’s why our advice is always tailor-made in order to get what’s best for you.

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Katarzyna Szafranska, Katarzyna Szafranska