Netherlands Tax Guide for Expats: 30% Ruling and Beyond

The Dutch Tax System

The Netherlands uses a unique Box system for taxation:

Box 1: Income from Work and Home

Progressive rates from 36.97% to 49.50% on employment income, business profits, and home ownership.

Box 2: Income from Substantial Interest

26.9% flat rate on income from a significant shareholding (5% or more) in a company.

Box 3: Income from Savings and Investments

Tax is levied on a deemed return on your net assets above approximately 57,000 EUR (single). The deemed return varies by asset type and is taxed at 36%.

The 30% Ruling

The 30% ruling allows qualifying expat employees to receive 30% of their gross salary tax-free as a reimbursement for extraterritorial costs. As of 2024, this has been reduced to 30% for the first 20 months, 20% for the next 20 months, and 10% for the final 20 months.

Eligibility

Recruited from abroad or transferred from a foreign company

Specific expertise not readily available in the Dutch labor market

Lived more than 150 km from the Dutch border for at least 16 of the 24 months before employment

Minimum salary threshold of approximately 46,107 EUR (2025)

Filing Your Dutch Tax Return

The Dutch tax year runs January to December. Returns are due by May 1 (automatically extended to September 1 for most filers). File through the Belastingdienst website using DigiD.

Key Deductions

Mortgage interest on your primary residence (eigenwoningforfait)

Commuting costs above certain thresholds (employer-dependent)

Study costs for career development

Charitable donations (gifts) above 1% of aggregate income

Medical expenses above a threshold

Alimony payments

Taxation.ai supports Dutch tax returns with automatic application of the 30% ruling, Box system calculations, and integration with DigiD for electronic filing.