30 percent tax ruling in the Netherlands

From 2022, the taxable salary for an employee can't be under €39,647. A minimum salary of €30,001 is applicable for those who have completed a Master's degree and are younger than 30 years old. This means that by taking into account the 30% tax ruling, your salary can't become less than these amounts. Furthermore, for scientific researchers, employees working in scientific education or doctors in training, no minimum salary is required. Please note that there are restrictions regarding the companies or institutions for which this group of employees can work. 

• Overall the employee must have experience in an area of expertise which is scarse on the Dutch labor market.
• People hired from within a 150km radius of the Dutch border are not entitled to the 30% ruling.
• There is a 25 year look back period. This means that all periods of residence or work in The Netherlands ending in the previous 25 years are deducted from the maximum 8 years period the ruling can be valid. This means for most Dutch nationals that they will not qualify for the ruling.

Employees working in the Netherlands under the 30%-ruling are entitled to the following tax advantages:
1. approximately 30% of their gross salary is paid as a tax-free '30%-cost reimbursement';
2. for other income elements than salary, they can choose for the so-called deemed non resident taxation.
3. Capital gains (e.g. on the sale of a real estate or shares) are not taxable in the Netherlands.

The taxation on Item 2. depends on whether the employee is considered a resident tax payer or a non-resident tax payer. In principle:
1. resident tax payers are employees who are living in the Netherlands;
2. non-residents tax payers are employees who are not living in the Netherlands.

In principle you are considered a non-resident if you and/or your spouse and family are (still) living abroad (outside the Netherlands). Although you have the option to be considered a resident taxpayer. Therefore we will give you some general remarks regarding these 2 different fiscal options: 

a) non-residents are not liable for Dutch taxation for foreign working days, holidays and sick days (this means days spent outside the Netherlands). These days are taxable in their home country. The difference in the Dutch and home country tax rates could lead to a tax benefit; or
b) non-residents have the option to be taxed like resident tax payers (partial taxation like in Item 1.). This implies that they loose the opportunity to deduct the foreign days as mentioned earlier, but might be able to deduct the mortgage interest in their foreign home. The request for the partial taxation can be made together with the application for the 30%-ruling, but ultimately when the tax return is filed.