The 30% reimbursement ruling (also known as the 30% facility) is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer can grant a tax-free allowance equivalent to 30% of the gross salary subject to Dutch payroll tax.
How do you calculate 30% ruling?
The 30% ruling is coordinated and supervised by the Belastingdienst (Dutch tax office). It’s possible to calculate the fiscal benefit of the ruling by calculating 30% of your gross annual salary. This amount is free from payroll and income tax.
Who qualifies for the 30% ruling?
Other requirements for the 30% ruling
You are an employee of a company in the Netherlands. You have specific professional expertise that is scarce or not available in the Netherlands. Highly skilled migrants are deemed to have such expertise when their income meets the above salary requirements.
How does the 30% rule work?
The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt. By regularly keeping your expenses balanced across these main spending areas, you can put your money to work more efficiently.
How long does the 30 ruling last?
The 30% ruling is granted for a maximum period of 60 months (5 years). For employments that started before January 1, 2012 the maximum duration period is 10 years. The 30% ruling is only applicable for the maximum period as long as the conditions to the ruling are met.
Can I apply for the 30 percent ruling if I have lived in the Netherlands before?
If you have already been working in the Netherlands for some years, you can still apply but previous years will not be taken into account and will be deducted from the the term that you can receive the 30% ruling.
What is good salary Netherlands?
According to the Centraal Planbureau (CPB), in 2021 the median gross income for a person working in the Netherlands is 36.500 euros annually or 2.816 euros gross per month. A salary can vary greatly from the median income as it is influenced by age, sector, professional experience and hours worked.
Who can get 30 ruling Netherlands?
Expats who have been recruited from abroad for a position in the Netherlands may be eligible for the 30% tax ruling. In order to be eligible for the 30% ruling you have to be in an employment situation. For those who work as self-employed, it is not possible to claim the 30% ruling.
Do you need Masters for 30% ruling?
A qualifying Master degree should be an equivalent of a Dutch Masters degree in university education. For submission of the 30% ruling it is required to request for a diploma evaluation.
How do you get 30% ruling in the Netherlands?
To obtain the 30% ruling, an application form should be filed with the Dutch tax authorities. To apply the ruling from the start of the Dutch employment or assignment, the application for the 30% ruling must be filed within a period of four months after the commencement date of the employment.
Is the 30 percent rule before or after taxes?
One popular rule of thumb is the 30% rule, which says to spend around 30% of your gross income on rent. So if you earn $2,800 per month before taxes, you should spend about $840 per month on rent.
How much money should I have by 30?
By age 30, you should have saved close to $47,000, assuming you’re earning a relatively average salary. This target number is based on the rule of thumb you should aim to have about one year’s salary saved by the time you’re entering your fourth decade.
What is the 30 percent rule of income?
The most common rule of thumb to determine how much you can afford to spend on housing is that it should be no more than 30% of your gross monthly income, which is your total income before taxes or other deductions are taken out. For renters, that 30% includes rent and utility costs like heat, water and electricity.
Can you lose 30% ruling?
How is the 30% ruling lost? The 30% ruling is lost when you no longer have a job, if you have been unemployed for a longer period than three months. If you switch jobs and with the new job you do not meet the criteria for the 30% ruling request.
What to do when 30 ends ruling?
30 % ruling is ending as of January 2021
Without the 30% ruling, you can no longer opt to be considered a partial non-domestic taxpayer. In other words, you will be treated as a full resident tax payer and you will need to state your worldwide assets in your Dutch tax return.
How can I save tax in the Netherlands?
Eight tax tips for expats
- New in the Netherlands? …
- Be aware of tax treaties. …
- 30% ruling and tax exemptions. …
- Mortgage interest on primary residence is deductable. …
- Benefit from residence-related deductions. …
- Non-working spouses eligible for tax rebate. …
- Check your childcare allowance entitlements.