Hello Going Expat people,

Always when I talk about moving to the Netherlands, I inform you of the possibility to benefit from 30% tax ruling, that is, the possibility to receive 30% of your salary not taxed for 5 years.

The basic rules for having this tax advantage (valid only for expats) remain the same, what changes is the % over the years until its disappearance.

Let’s review the requirements together.

The requirements may change slightly depending on the variants, such as if you have a PhD, but the basic, and most important, requirements are as follows:

  • You must have been recruited abroad. So when you are not yet registered in the Netherlands.
  • The residence of the last 2 years before the request of 30% tax ruling, must be over 150km from the Dutch border.
  • You must not have already received the benefit during a previous work experience.
  • The skills of the work that will be carried out are considered difficult to find already on site.
  • From 30 years old onwards the basic salary of the new job must be €46,107 (previously it was around € 39,000) under 30 years of  €35,048 (previously it was around € 30,000) – it is gross in both cases – .
  • The company must also be registered in the Netherlands and then pay taxes in the country where it practices.

As anticipated these elements do not change.

So what changes then?

Starting from January 2024, all those who will access the bonus (I am talking about new beneficiaries), will gradually see reduced the portion of salary that will not be taxed until the end of 2026. However, those who come with these features starting from 2025 may not be able to enjoy the benefit anymore.

The maximum time you can take advantage of the tax ruling is 60 months, about 5 years.

The first 20 months include the benefit on 30% of salary

The next 20 months will see a first reduction to 20% of salary

Finally, the last 20 months will see the bonus applied only to 10% of salary.

I’d like to remind you that this is not a tax discount, but a portion/ percentage of the salary that is paid gross, then no taxes. Gradually this percentage will go from 30 to 10.

What happens to those who already benefit from the 30% tax ruling?

Nothing, all those who can enjoy the tax benefit, approved before 1/01/2024 will continue to receive 30% of the untaxed salary, taxes will be clearly calculated on the remaining 70%, until and no later than 2026.

Those who will have access to tax relief from 1/01/2024 can take advantage of it for 60 months (about 5 years) but with the reduction mentioned above – first 30% then 20% and finally 10% –

Let’s make a few example to clarify:

Beneficiary of the ruling since 2019 – nothing changes, the 70% of the salary will continue to be taxed and 30% will be paid bruto until 2024

Beneficiary of the ruling from 2023 – will continue to have 70% of the taxed salary until 2026 (30% tax ruling).

Beneficiary of the ruling from January 2024 – until August 2025 will be taxed 70% of the salary (30% tax ruling), from September 2025 to May 2027 will receive the salary taxed for 80% of its total (20% tax ruling) and from June 2027 to February 2029 90% of the salary will be taxed (10% tax ruling).

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