Key takeaways
The 30% ruling (also called the Dutch 30 ruling or expat scheme) is a tax break for foreign workers in the Netherlands. The idea is to compensate for extra costs you face moving from abroad – things like higher rent, unfamiliar systems, relocation expenses. Many expat families use the extra income to cover international school fees or supplement their kids' Dutch education with AP courses and College Prep from Legacy.
- The 30% ruling allows foreign employees to receive 30% of their gross salary tax-free as compensation for extraterritorial costs
- Minimum salary requirements for 2026: €46,107 for employees, €35,048 for workers younger than 30 with a master's degree
- You must have lived outside the Netherlands for 16 months in the 24 months before your first working day to be eligible
- The ruling is applicable for a maximum of 5 years and must be applied for within four months of starting employment
Contents
- 1 How Does the 30% Ruling Work in the Netherlands?
- 2 Who Is Eligible for the 30 in 2026?
- 3 How to Apply for the Expat Scheme
- 4 How Long Does the Tax Benefit Last?
- 5 The De Jong Family in Amsterdam
- 6 Tax Break vs. Living Costs
- 7 What the Numbers Look Like
- 8 First Working Day Matters
- 9 What Legacy Offers Expat Families
- 10 Top Tips from Our Expert
We are a US-accredited international online school that coexists with local schooling. Families are responsible for ensuring compliance with any local education requirements applicable to their situation.
How Does the 30% Ruling Work in the Netherlands?
The 30% ruling is basically a tax break the Dutch government gives to foreign workers. You move to the Netherlands for a job. You face extra costs because you’re not from here. Higher rent. Relocation expenses. Getting used to a new system.
The Dutch government says: we get it. We’ll give you a break.
30% of your salary becomes tax-free. Not a bonus. Not extra money on top. Just 30% of what you already earn gets treated as an allowance for moving here. Instead of paying income tax on your full salary, you pay on 70%. This tax exemption reduces your taxable salary significantly.
Example makes this clearer. Annual salary €60,000. With the 30% ruling, €18,000 is tax-free. You pay income tax on €42,000 instead of the full €60,000.
According to the Dutch Tax Administration, one of the reasons the ruling exists is to attract skilled people from abroad. The Netherlands wants your expertise.
Who Is Eligible for the 30 in 2026?
Not everyone gets the 30% ruling. You need to tick a few boxes.
Salary threshold: €46,107 gross per year for most people. If you’re under 30 with a master’s degree, it drops to €35,048. These numbers change annually, so double-check when you apply. To qualify, you must meet the minimum salary requirement for your category.
Residency before moving: You must’ve lived outside the Netherlands for at least 16 months in the 24 months before your first working day here. Living near the Dutch border (within 150 kilometers) doesn’t count as “outside.” If you stayed in the Netherlands or within the border zone during that period, those months don’t count toward your eligibility.
Specific expertise: Your employer has to prove they couldn’t find someone with your skills in the Dutch labor market. This usually means specialized knowledge, technical expertise, or experience that’s hard to find locally. Special exception: if you work at a designated research facility recognized by the Dutch government, some eligibility criteria may be relaxed.
Employment contract: You need a proper Dutch employment contract. If you switch jobs within the Netherlands, the ruling can transfer to your new employer, but the 5-year max still applies across all employers.
How to Apply for the Expat Scheme
Your employer handles the application. You can’t apply yourself.
They submit it to the Dutch Tax Administration within four months of your first working day in the Netherlands. Miss that window and you lose the retroactive benefit.
Documents they’ll need: your employment contract, proof you did not live in the Netherlands for 16 months in the previous 24, and evidence of your specific expertise (degrees, certifications, work history).
If approved, the ruling kicks in from day one of your employment. If rejected, there’s no appeal. You can reapply if circumstances change, but that four-month clock from your start date still matters.
According to IamExpat’s guide on the 30% ruling, the Belastingdienst will get back to you with a decision after reviewing your application.
How Long Does the Tax Benefit Last?
Maximum 5 years. No extensions.
If you worked in the Netherlands before and already used the ruling for part of that time, the total across all periods can’t exceed 5 years. So if you used it for 2 years in a previous job, you get 3 years max in your current job.
The ruling ends early if you move outside the Netherlands (more than 150 km from the border), your employment ends, or you cancel it voluntarily.
Partial foreign tax liability (PFTL): If you use the 30% ruling, you can opt for it. This means the Netherlands only taxes your Dutch income. Investment income, savings, assets outside the Netherlands? Not taxed here.
In Dutch tax terms, this affects Box 2 and Box 3 income. Box 2 covers income from substantial interest (shareholdings). Box 3 covers savings and investments. With PFTL, foreign Box 2 and Box 3 assets aren’t taxed in the Netherlands.
Worth exploring if you have significant foreign assets. Talk to a tax consultant to see if this makes sense for your situation. Keep in mind: you’ll still need to file an income tax return annually with the Dutch Tax Administration.
The De Jong Family in Amsterdam
Erik and Sofie de Jong moved from Belgium to Amsterdam in 2024. Erik got a job at a local tech company. Salary – €55,000. He qualified for the 30% ruling. That’s €16,500 tax-free every year.
Two kids: Noah, 14, and Lotte, 11. Both go to a Dutch public school. International schools in Amsterdam? €40,000+ per year for both kids combined.
Even with the 30% ruling, they couldn’t swing it.
So they enrolled Noah in Legacy’s AP courses instead. He took AP Calculus AB and AP English Language and Composition alongside his Dutch school program. Classes ran evenings. Didn’t mess with his school day.
May 2026, he earned 5s on both AP exams.
Cost for both courses? Fraction of one year at an international school. His Dutch school counted them as independent study. Now he’s applying to universities in Belgium and the Netherlands with strong AP credits on his transcript.
Lotte’s joining Legacy’s middle school program next year.
Tax Break vs. Living Costs
The 30% ruling is a significant tax advantage. No question. But the Netherlands isn’t cheap.
Amsterdam, The Hague, Rotterdam, Utrecht – housing costs are brutal. Family apartment in Amsterdam? Easily €2,000+ per month. Childcare runs high if both parents work. International schools charge €15,000 to €25,000 per kid per year.
Many expat families use the tax benefit to offset these expenses. Some choose Dutch public schools and add English-language programs like AP courses or College Prep from Legacy.
Gives kids US-accredited coursework without the full cost of switching schools.
What the Numbers Look Like
Let’s put real numbers to it.
Salary €50,000: Without ruling: you pay tax on €50,000. With ruling: €15,000 tax-free. You pay tax on €35,000.
Difference? Roughly €5,000-€6,000 extra in your pocket annually. Depends on your bracket.
Salary €70,000: Without ruling: you pay tax on €70,000. With ruling: €21,000 tax-free. You pay tax on €49,000.
Difference? Roughly €7,000-€8,000 extra per year.
That makes a dent in monthly budgets. Especially for families juggling Dutch schools and supplementary education.
First Working Day Matters
Your first day at work in the Netherlands starts the clock – physically from a Dutch location for your Dutch employer.
Start January 15, 2026? You have until May 15, 2026 to apply (four months). If approved, the ruling applies retroactively from January 15.
Apply June 1 instead? Ruling only kicks in from June 1 forward. You lose January 15 to May 31.
Also: if you stayed within 150 km of the Dutch border before your first working day, that period doesn’t count toward the “16 months outside the Netherlands” requirement.
Plan your move with that in mind.
What Legacy Offers Expat Families
We’re a WASC-accredited online school founded in 2023. Serving 1,200+ students from 30+ countries.
We don’t replace your kid’s Dutch education. We add to it.
AP courses. College Guidance. English enrichment. Summer school. Part-time courses.
Live classes, 15 students max. Curriculum via FlexPoint Education Cloud. Qualified teachers. QR-verified transcripts. Dual enrollment with Arizona State and the University of South Florida.
College Board-approved AP credits accepted by 500+ universities worldwide.
Book a trial class. Free session for your kid and a parent meeting with our admissions team.
Top Tips from Our Expert
Maya Robinson, College Prep Advisor at Legacy Online School
- Apply within four months. Your employer handles it, but follow up. Miss the deadline and you lose retroactive benefits.
- Watch the salary threshold. If your salary drops below the minimum, you lose the ruling. Plan accordingly.
- Use the extra income strategically. Many families put it toward education – international schools or supplementary programs like AP courses.
- Remember the 5-year limit. When it ends, your tax bill goes up. Budget for that if you’re staying longer.
Disclaimer: This article provides general information about the 30% ruling in the Netherlands. Tax laws are complex and subject to change. We are not tax advisors or legal professionals. Families are solely responsible for consulting qualified tax consultants or legal advisors to ensure compliance with Dutch tax laws and regulations.
We are a US-accredited international online school that coexists with local schooling. Families are responsible for ensuring compliance with any local education requirements applicable to their situation.
Legacy Online School’s programs are offered as supplementary education for students in the Netherlands. Under Dutch law (Leerplichtwet 1969), children aged 5–16 residing in the Netherlands are required to attend an accredited school. Legacy Online School does not offer full-time K–12 education as a substitute for compulsory school attendance for students permanently residing in the Netherlands. Families are solely responsible for ensuring compliance with Dutch compulsory education requirements.
