Under certain conditions, employees hired from outside of the Netherlands, a special tax ruling exists called the ‘30% ruling’.
The 30% facility ruling is a Dutch tax incentive to attract foreign employees with specific skills or expertise to work in the Netherlands.
The 30% facility ruling provides a tax free reimbursement (30%-allowance) which is deemed to cover all extra costs for staying outside of the country of origin. Other benefits apply, we will be happy to inform you of these benefits in our advice to you.
One of the conditions to be eligible for the 30%-ruling is that the employee should be assigned or recruited from outside the Netherlands. For safety sake, the Dutch employment/assignment agreement should preferably be concluded before arrival in the Netherlands.
If applicable, the 30% facility is granted for a maximum of 8 years (96 months). This period will generally be reduced with any earlier periods of stay or employment in the Netherlands.
You can learn more about this 30% ruling in our news section.
The ruling allows an employer to provide an employee with a tax-free allowance of up to 30% of his/her wages, resulting in a cash benefit on the remuneration of around 15%.
We have a very competitive all-in fixed fee structure for 30% ruling applications. Please contact us for more information.