Netherlands 30% ruling: eligibility and application in 2026

What the ruling does

Subject to a valid decision and salary test, an employer may pay up to 30% of salary including the allowance tax-free instead of reimbursing actual extraterritorial costs. The employer is not required to pay the full 30%; the employment agreement and payroll implementation matter.

From 2026, the maximum full-year tax-free allowance is €78,600. It is time-apportioned when the scheme applies for only part of a year.

Core eligibility tests

• You are employed by the employer applying the scheme.
• You have specific expertise, normally demonstrated through the indexed salary test.
• You were recruited from outside the Netherlands.
• During the 24 months before your first Dutch working day, you lived more than 150 kilometres from the Dutch border for more than 16 months.
• The Dutch Tax Administration issues a valid decision.

For 2026, taxable annual salary excluding the tax-free allowance must be more than €48,013. For employees under 30 with a qualifying academic master degree, the threshold is more than €36,497. Certain researchers and medical specialists in training are exempt from the salary test.

How to apply

The employee and employer complete the application together. The Tax Administration states that it normally responds within eight weeks. Submit evidence of recruitment, residence history, employment and qualifications.

The 150-kilometre residence rule

The test looks back over the 24 months before the first working day. You must have lived more than 150 kilometres in a straight line from the Dutch border for more than 16 months. This generally excludes Belgium, Luxembourg and parts of Germany, France and the United Kingdom.

Prior Dutch work, study or residence can affect both eligibility and duration. Disclose the full history rather than only the latest address.

Duration and employer changes

A decision can run for a maximum of five years, reduced for certain earlier periods in the Netherlands. When changing to an employer outside the same group, a continuation request is generally needed. Continuation may be possible when the new employment starts within three months after the old employment ends and all conditions remain met.

Common mistakes

• Assuming an HSM permit automatically grants the ruling.
• Using the wrong salary figure or including the allowance in the expertise salary.
• Ignoring the 150-kilometre residence history.
• Failing to agree the treatment in the employment contract.
• Assuming the allowance must always equal exactly 30%.
• Not reviewing eligibility after unpaid leave, salary change or employer switch.