30% ruling Netherlands: tax benefit for HSM expats

How the 30% ruling works for highly skilled migrants, eligibility, and what changes in 2025–2027.

The 30% ruling is a Dutch tax benefit for highly skilled foreign employees. It allows your employer to pay up to 30% of your gross salary as a tax-free allowance for up to 5 years. This compensates for extraterritorial costs: travel home, double housing, relocation. For HSM visa holders, it can effectively increase net income by 20–30%.

Eligibility: you must have lived more than 16 months in the 24 months before employment at a distance over 150 km from the Dutch border. Your salary must exceed €46,660 (or €35,468 if under 30 with a master's). You need specific expertise scarce in the Dutch labour market. Your employer applies for the ruling — you cannot do it yourself.

In 2025, the flat 30% applies for all 5 years. There is a maximum salary cap (around €233,000) and a cap on the tax-free allowance. From January 2027, new applicants will get 27% in the first year, with a phased reduction. Salary thresholds will also rise.

Box 3 wealth tax exemption was abolished for new applicants from January 2025. Existing ruling holders may keep it under transitional rules. Always check the latest rules on the Dutch Tax Authority or your employer's tax advisor.

If you qualify for HSM sponsorship, ask your employer whether they will apply for the 30% ruling. It is a significant benefit and many IND-recognised sponsors are familiar with the process. Combine it with a competitive salary to maximise your net position in the Netherlands.