The 30% reimbursement ruling

The 30% reimbursement ruling (the 30% facility) is an advantageous tax ruling specifically designed for foreign employees working in the Netherlands. When a number of conditions are met, an employer can grant a tax-free allowance amounting to circa 30% of the gross salary subject to Dutch payroll tax.

The 30% ruling results in a maximum (effective) tax rate of approximately 36.4% (instead of 52%). This tax-free allowance is considered compensation for expenses a foreign employee experiences when working outside his or her home country. The 30% facility applies to you if you were recruited outside of the Netherlands or seconded from a country other than the Netherlands to work in the Netherlands. Conditions including the following will apply to making use of the 30% facility (with effect from 1 January 2012):

  • You have an employment relationship.
  • You have specific expertise that is not or is only barely available on the Dutch employment market. You are deemed to possess that expertise if your salary (not including the tax-free allowance) in the Netherlands is at least € 37,000 per year (2017). Are you under the age of 30 and in possession of a Dutch university degree (or were you awarded an equivalent degree in a country other than the Netherlands)? If so, you can use the 30% facility if your salary (not including the tax-free allowance) in the Netherlands is at least € 28,125 per year (2017).
  • You have a valid decision. 
  • In the 24 months prior to your 1st day of work in the Netherlands you live more than 150 kilometres in a straight line form the Dutch border. 

For further and the most up-to-date information about the 30% facility please visit the website of the Dutch tax authorities (