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The Netherlands – More limitations to the 30% ruling for expats starting 1 January 2024

The 30% ruling is considered as one of the most advantageous tax rulings for expatiates employees.
However, starting 1 January 2024 the 30% ruling shall be limited as follows.

  • The 30% ruling shall apply to a maximum salary as determined in the Standard for Remuneration Act.
    For 2024 this is set at € 233,000 and will be amended annually.
  • For the first 20 months the maximum tax-free allowance will be calculated at 30%.
    The following 20 months, the tax-free allowance will be calculated at 20%.
    In the last 20 months, the tax-free allowance will be calculated at 10%. 
  • The partial non-resident tax status will be abolished as of 1 January 2025.
    Expatriates with the 30% ruling shall then also be taxed on their worldwide income in the Netherlands.

There will be a transition period for expatriates who were are granted the 30% ruling with a starting date before 1 January 2024.
Currently the 30% ruling is granted for a maximum period of 60 months and this maximum period shall remain unchanged.