What’s the 30% Ruling ?

What’s the 30% Ruling ?

Hey there, savvy expats and globe-trotters eyeing the Netherlands for your next career move! Let’s dive into the 30% ruling—a sweet deal that could see you keeping more of your paycheck away from the taxman. But, like all good things, there are a few boxes you need to tick first. So, grab a coffee, and let’s break it down in a way that won’t make your eyes glaze over.

What’s the 30% Ruling Anyway?

Imagine this: you land a job in the tulip-adorned lands of the Netherlands, and instead of paying taxes on your full salary, you only pay taxes on 70% of it. The other 30%? Tax-free, baby! Sounds good, right? But there are a few “buts” you should know about.

The Basic Must-Knows

  • Time’s Ticking: You’ve got a 5-year max to enjoy this perk. Use it wisely!
  • Not Too Local: Before you set foot in the Netherlands, you should have been living at least 150km away from the Dutch border for more than 16 out of the last 24 months.
  • Recruited from Afar: You need to be headhunted from outside the Netherlands. If you moved here and then started job hunting, that’s a no-go for the 30% ruling.

Show Me the Money

  • Minimum Earnings: After the 30% adjustment, you should be earning at least EUR 46,107. For the maths enthusiasts, that means your gross salary needs to be at least EUR 65,897 to fully benefit.
  • Young Guns with Degrees: Under 30 with a university master’s? The bar is lower for you—earn more than EUR 35,048 (or EUR 50,069 for the full 30% benefit).
  • High Rollers Listen Up: Earning more than EUR 233,000? The tax break caps out, and the rules are changing. If you’re already on this scheme since 2022, you’ve got until 2026 before the cap hits you.
  • Staggered Goodbye: From 2024, the tax break eases you out gently—30% for the first 20 months, then 20%, and finally, 10% in the last 20 months.

The Fine Print

  • On the Clock: Land your job and apply within 4 months to get the benefit from day one. Miss the window, and you’ll be wishing you hadn’t.
  • Switching Jobs?: You’ve got to apply all over again within 4 months of your new gig. Plus, nab that new contract within 3 months to keep things smooth.
  • Partial Non-Residency: From 2024, this applies until the end of 2024, but if you’re already in the club, you’re good until the end of 2026.

So there you have it—the 30% ruling in a nutshell, without the tax jargon headache. Whether you’re here for the career boost, the culture, or the stroopwafels, knowing these bits can help make your Dutch adventure a bit more lucrative. Cheers to making smart moves and enjoying more of what you earn in this beautiful corner of the world!


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