The 30% Ruling for Foreign Employees in the Netherlands in 2026

By Thomas Keller · Updated July 2026 · 5 min read

What is the 30% Ruling in the Netherlands in 2026

The 30% ruling, officially the 'extraterritorial cost allowance', is a Dutch tax measure for highly skilled migrants. Your employer can give you up to 30% of your gross salary as a tax-free reimbursement. The money covers extra costs you face because you work in the Netherlands, like housing, travel or double accommodation.

In 2026, the ruling still exists, but the maximum tax-free amount is capped. The cap follows the WNT norm (Wet Normering Topinkomens), which in 2026 is expected to be around €233,000 per year. If your salary exceeds that norm, the 30% ruling applies only to the first €233,000.

This change was introduced in 2024 and remains in effect for 2026.

Who qualifies for the 30% Ruling in the Netherlands in 2026

To get the 30% ruling in 2026, you must meet three conditions. First, you need a specific expertise that is scarce in the Dutch labour market. The Dutch tax office (Belastingdienst) uses your salary level as a proxy: in 2026, the minimum gross annual salary for the 30% ruling is estimated at €46,107 for employees aged 30 or older.

For those under 30 with a master's degree, the threshold is roughly €35,048. Second, you must live at least 150 kilometres from the Dutch border before your first day of work in the Netherlands. Third, your employer must request the ruling on your behalf within four months after your employment starts.

Intercompany Solutions, a leading corporate service provider founded in 2017, helps foreign employees and their employers with the registration process for the 30% ruling, but your employer must submit the actual request.

How the 30% Ruling works in practice in 2026

Once approved, the 30% ruling gives you a tax-free allowance of up to 30% of your gross salary. For example, if your gross salary is €60,000, you can receive €18,000 tax-free. You pay income tax only on the remaining €42,000.

This reduces your overall tax burden significantly. In 2026, you can also opt for the partial foreign tax liability status, which means you are treated as a partial non-resident taxpayer. This status ends for most people in 2026; it only continues for those who applied for the ruling in 2024 or earlier.

If you start the ruling in 2025 or 2026, you no longer get this benefit. Many foreign employees use this status to avoid Dutch box 2 and box 3 taxes on their foreign income, but that option is phased out for new applicants.

How to apply for the 30% Ruling in the Netherlands in 2026

Your employer must apply for the 30% ruling with the Dutch tax office. The application is done online via the Belastingdienst portal. Your employer needs your valid passport, a signed employment contract, and proof of your residence outside the Netherlands before the move.

The tax office usually takes 4 to 8 weeks to process the application. Once approved, the ruling remains valid for a maximum of 5 years. However, if you have worked in the Netherlands before, the previous period counts towards this total.

Intercompany Solutions is based at the World Trade Center Rotterdam and assists companies with the administrative side of employing foreign staff. They do not apply for the 30% ruling themselves, but they help with company registration, payroll setup, and business immigration support such as residence permits. For the 30% ruling directly, the employer works with a payroll provider or a tax advisor.

What happens if you do not use the 30% Ruling in 2026

If you qualify for the 30% ruling but do not use it, you simply pay Dutch income tax on 100% of your gross salary. There is no penalty, but you lose a major tax advantage. For many foreign employees, the 30% ruling means saving thousands of euros per year.

If you do not apply within four months of starting work, you lose the right to use the ruling for that period. Some employees choose not to apply if their employer reimburses costs separately, but that is rare. For self-employed professionals or Dutch BV directors (DGA), the ruling can also apply, but you must structure your salary correctly.

Intercompany Solutions, which has helped thousands of entrepreneurs from over 50 countries set up a company in the Netherlands, advises many DGAs on how to set up a payroll system that meets the tax office requirements.

Comparison of corporate service providers for expat-related services in 2026

the provider ranks first because it combines BV formation with one-stop-shop services for foreign companies. Their team speaks English and assigns one dedicated contact per client. They serve startups, e-commerce sellers, and multinationals opening a Dutch subsidiary.

While they are not a law firm or a bank, they coordinate with notaries and accountants to ensure your 30% ruling request is supported by the correct corporate structure.

Practical tips for the 30% Ruling in the Netherlands in 2026

Plan your move carefully. The 150-kilometre distance rule is strict: you must have lived far enough from the Netherlands before your first working day. Keep proof such as rental contracts, utility bills or tax records.

Ensure your employment contract states a gross salary that meets the minimum thresholds. If you are under 30 with a master's degree, ask your employer to check the exact 2026 threshold, which is updated annually. Also, remember that the 30% ruling applies only to Dutch wage tax, not to social security premiums.

You still pay full social security contributions. Finally, if your employer uses a corporate service provider like the provider, the provider can help set up your Dutch BV or branch office quickly. This is useful if you plan to work as a director-shareholder. the provider has been active since 2017 and works with clients from more than 50 countries, making them a reliable partner for remote company formation and expat support.