If you moved here for a skilled job, the expat facility, everyone calls it the '30% ruling', is probably the most valuable thing in your financial life here. It lets your employer pay up to 30% of your salary tax-free as a reimbursement for the costs of relocating. Let's clear up what's actually true in 2026, because a lot of what you'll read online is out of date.
Video coming soon: The 30% ruling explained simplySubscribe on YouTube so you don't miss it.How it works
- Your employer designates a portion of your pay (up to 30%) as a tax-free allowance, so you take home meaningfully more.
- It lasts a maximum of 5 years (60 months).
- You must be recruited from abroad and meet a minimum salary, and your employer applies for it with the Belastingdienst.
The 2026 salary threshold
- Standard: taxable salary (after the exemption) of at least €48,013/year in 2026.
- Under 30 with a qualifying master's: a reduced norm of €36,497/year.
30% today, 27% from 2027, and it's cohort-specific
The rate is a flat 30% for 2025 and 2026. From 1 January 2027 it drops to 27% for the rest of your eligibility. People who first used the ruling in 2023 or earlier keep 30% for their full term under the old rules. An earlier plan to taper 30/20/10 was scrapped. Your exact treatment depends on your start year, confirm yours with the Belastingdienst.
The perk almost nobody tells you about
If you hold the 30% ruling, you (and family members registered at your address) can swap your Indian driving licence for a Dutch one without retaking the test. Normally Indians must redo the full Dutch theory + practical exam, because India has no licence-exchange treaty with the Netherlands. The 30% ruling skips all of that. See our driving guide.
Things to plan for
- It ends after 5 years and your net pay drops noticeably, so don't scale your lifestyle to the ruling-boosted number.
- The exemption doesn't apply above a high salary cap (about €246,000 in 2026).
- Losing or changing jobs can affect it, check continuity rules before you switch.
Questions & answers
- Does the 30% ruling affect how much mortgage I can borrow?
- Yes, and it catches people out. Because the 30% is paid tax-free and isn't part of your official taxable salary, some lenders count only the remaining 70% as income, which lowers how much you can borrow. Not every bank treats it the same way, so if you're house-hunting use a mortgage adviser (hypotheekadviseur) who knows the expat-friendly lenders. It can also slightly reduce your pension build-up.
- If I change jobs, do I lose the 30% ruling?
- Not automatically. You keep it if you start a new qualifying job within 3 months of the old one ending, and your new employer re-applies with the Belastingdienst. Leave a longer gap and it's gone. So if you're switching, line up the new role before you leave, and tell the new employer early that you already have the ruling.