Netherlands’ Thirty Percent 30% Ruling New Regulation for Expats – 2024/2025

Recently, we discussed the recent amendments to the 30% tax advantage applied to expats working as highly skilled migrants in the Netherlands. Pursuant to the change that came into effect in 2024, the 30% rule was to be gradually reduced over a 60-month period in intervals of 20 months, decreasing sequentially from 30% to 20% to 10%.

Shortly after this amendment, the newly established government in the Netherlands introduced a new regulation concerning the 30% rule. A report submitted to the government on June 14, 2024, conducted a detailed analysis of the original 30% regulation and the effects of the gradual reductions implemented in 2024. The report indicated that maintaining the 30% tax advantage for a full five years is more economical than reducing it incrementally to 20% and 10%. Furthermore, it was stated that the reduction from 20% to 10% would prompt many employees to opt for actual expatriate expense reimbursements instead of the fixed tax deduction, which would impose additional administrative burdens on employers without contributing to the treasury.

What Is the New Thirty Percent 30% Tax Regulation for Expats?

Under the newly introduced regulation, instead of a gradual reduction of the 30% tax advantage, a fixed tax deduction rate of 27% for a period of five years has been established for newly arriving highly skilled workers.

When Will the New Thirty Percent 30% Regulation Come into Effect?

This new regulation will be effective as of January 1, 2027. Nonetheless, any further actions taken by the government can be tracked through our website.

How Will the Thirty Percent 30% Tax Advantage Apply to Highly Skilled Migrants Who Start Working After January 1, 2024?

Highly skilled migrants who commence employment after January 1, 2024, will continue to benefit from the existing 30% advantage until the new regulation is implemented in 2027. The gradual reduction of the 30% advantage will not be applicable to these individuals.

How Will the Thirty Percent 30% Tax Advantage Apply to Highly Skilled Migrants Who Started Working Before January 1, 2024?

Highly skilled migrants who began employment before January 1, 2024, will continue to benefit from the 30% tax advantage for a period of five years.