The 30% Ruling Rule Changes for Highly Skilled Migrants

The 30% ruling is a Dutch tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When eligible, the employer can pay 30% of the employee's salary tax-free, which significantly increases net take-home pay.

It is designed to attract global talent (like software engineers, designers, and scientists) to meet specific skills shortages in the Dutch market.

The Dutch government recently passed amendments to the 30% ruling structure. Instead of a flat 30% tax-free allowance for the full duration, a sliding scale has been introduced:

• First 20 months: 30% of the salary is tax-free.
• Second 20 months: 20% of the salary is tax-free.
• Final 20 months: 10% of the salary is tax-free.

This phased reduction (often referred to as the 30-20-10% rule) reduces the maximum tax advantage over the standard 5-year duration but still offers substantial tax savings compared to standard tax rates.

To qualify for the 30% ruling under the updated policy, the following criteria must be met:

You must have been recruited from abroad and have lived at least 150 kilometers away from the Dutch border for 16 out of the 24 months preceding your first working day in the Netherlands.

You must also meet a minimum taxable salary threshold, which is adjusted annually. For 2026, the standard taxable salary minimum is €46,107, or €35,048 for migrants under the age of 30 who hold a Master's degree.