The 30% ruling is an important motivation for people from abroad to work in the Netherlands. It offers compensation for the extra costs that people from abroad make when they choose to live and work in the Netherlands. Do you know the principles of this ruling? In this article I will share the highlights and give some more background on Settle Service’s fast track 30% ruling service.
The Dutch government introduced the 30% ruling after World War II. The originally secret ruling was meant for people, mainly Americans, who helped re-building the Netherlands. It was only in 1986 that the ruling became publicly known. (source: L. van der Hoorn, De 30% regeling nader onderzocht, 2018)
In the years between 1945 and 2019, the ruling was changed many times; not only the duration but also the percentage has changed (40% in the early days, 35% until 2001, 30% since then).
The 30% ruling now
Nowadays, the 30% ruling has a maximum duration of five years. The main conditions are:
- You have an employment relationship;
- You are recruited from another country by your employer, or you are sent from another country to your employer;
- Of the 2 years before your 1st working day in the Netherlands, you lived outside the Netherlands for more than 16 months, at a distance of more than 150 kilometres from the Dutch border;
- You have specific expertise that is not or is only barely available on the Dutch employment market;
- You have a valid decision.
The specific expertise from the above overview is translated into salary amount:
- In general your fiscal salary in 2019 has to be at least € 37.743;
- If you are younger than 30 years and you have a Dutch master or an equal grade from another country your fiscal salary has to be at least € 28.690;
- If you are a scientific researcher working at certain scientific organizations you will always be eligble for the 30% ruling.
Settle Service’s fast track 30% ruling service
Settle Service offers a fast track 30% ruling service. We perform many 30% applications per year; around 500 in 2018 and up until 15 May 2019 we have already performed 250 applications. When our team takes up your application, we will ask you to submit the required documents to us. Of course, we work with systems that guarantee your data privacy! Once we receive all documentation, we will judge if you are indeed eligible. If this is the case, your employer can instantly implement the ruling in their personnel administration. You will receive the official confirmation of your eligibility from the Belastingdienst (the Dutch Tax Authorities) a few weeks later.
Check out our online 30% ruling eligibility tool to see if you are eligible for the ruling!