The 30% ruling in the Netherlands is a tax advantage for highly skilled migrants who come to work in the country. It allows these individuals to receive up to 30% of their taxable salary tax-free for a period of up to five years. The ruling is designed to help companies attract and retain the best talent from around the world, regardless of their nationality.
To be eligible for the 30% ruling, there are several requirements that must be met. Firstly, the individual must have been recruited from abroad and have a valid work permit. Secondly, their taxable salary must exceed a certain minimum amount, which is set annually by the Dutch government. The minimum amounts for 2023 are € 41,953 per year or € 31,891 per year if you are under 30 years old and have a Master’s Degree. Finally, the employee must have specific expertise or qualifications that are deemed to be in short supply in the Netherlands.
The 30% ruling has several benefits for highly skilled migrants. Firstly, it reduces their tax burden, making the Netherlands a more attractive place to work. Secondly, it can also help to reduce the cost of living for the individual, as many expenses, such as housing and travel, are reimbursed tax-free as part of the ruling. Finally, the 30% ruling can also improve an individual's net income, as the tax-free portion of their salary is not subject to social security contributions.
30% applicants from January 1st, 2023 and onwards will have their applicable salary capped at € 223,000 from one year later : January 1st, 2024 and onwards. This means that any salary received above € 223,000 per year will be taxed regularly without application of the 30% ruling.
In addition to the benefits for the individual, the 30% ruling also has a positive impact on the Dutch economy. By attracting and retaining highly skilled workers from around the world, the country is able to maintain its position as a leading hub for innovation and technological development. Moreover, the 30% ruling can also help to stimulate economic growth and create new job opportunities, as companies are able to expand and grow with the help of the talented workers they have attracted.
In conclusion, the 30% ruling in the Netherlands is an attractive option for highly skilled migrants who are looking to work in the country. It offers a range of benefits, including reduced tax burden, lower cost of living, and improved net income, making the Netherlands a more attractive place to work and live. Additionally, the 30% ruling also helps to stimulate economic growth and create new job opportunities, contributing to the overall success of the Dutch economy.
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