30% ruling becomes 27% ruling
The advantageous 30% ruling is getting harder to obtain! Read more here.
Restrictions
Last year, it was abruptly decided that the 30%-ruling was to be restricted. The maximum tax-exempt reimbursement of 30% would no longer apply for up to 60 months; instead, after every 20 months, the reimbursement would decrease by 10%. So, it would go from 30% to 20%, and eventually down to 10% for the last 20 months. This restriction was immediately met with a lot of criticism; it was seen as disavantageous to the Netherlands’ business and investment climate and would make for too much administrative hassle. In 2024, the 30% ruling was set to be evaluated again, and there were already suggestions that the restriction might be reversed. And that is exactly what happened in the Dutch Tax Plan 2025!
In the 2025 Tax Plans, the previously implemented restriction is being revoked, but, unfortunately, the 30% ruling will be limited in another way which is described below.
The 27% ruling
The maximum tax-free reimbursement of 30% will be reduced to 27% starting as of 2027.
In addition, from 2027 onwards, the income threshold for the 30%-ruling will be raised from €46,107 to €50,436. For employees under 30 years old with a master’s degree that are making use of the 30%-ruling, the income threshold will increase from €35,048 to €38,388. This is a significant increase, which will be indexed annually. In addition there is no longer an option to choose for partial non-domestic taxation from 2025 onwards.
These measures will result in fewer expats qualifying for the ruling and a decrease in the tax-exempt reimbursement. For all expats who already qualified for the 30% ruling before January 1, 2024, the maximum tax-exempt reimbursement will remain at 30% for the entire duration and they will be able to opt for partial non-domestic taxation until 2026.
Suurmond Tax consultants will, as before, be at your side to help you gain the 30% ruling – although there are a lot more restrictions than there used to be, of course. We have obtained favourable results in many different situations.
Or do you already have the 30%-ruling and is it ending soon? Then contact us and we can advise as to the consequences and tax optimisation possibilities!