
The 30% Tax Facility
The Netherlands is a country that welcomes onderzoekers (researchers) and kennismigranten (highly skilled migrants), truly valuing their input and impact on Dutch society and industry. Not only is the Netherlands a great place to live and work in the short or long term, due to its open-market policy and prime transportation location it is often listed as one of the top countries for international trade.

Recognising that highly skilled migrants and researchers are needed to further strengthen the Dutch economy, culture, and research fields, alongside the fast-tracked registration process, the Government of the Netherlands also offers the 30% Tax Facility, which covers up to 30% of an employee’s remuneration as a tax-free expense allowance in compensation for extraterritorial costs, without having to provide evidence for these costs.
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The 30% Tax Facility applies to if the employees was recruited outside of the Netherlands or seconded from a country other than the Netherlands to work in the Netherlands. Conditions including the following apply to making use of the 30% facility:
- Valid employment
- The employee is recruited from another country by the employer, or is sent from another country to the employer
- Of the 2 years before the first working day in the Netherlands, the employee lived outside the Netherlands for more than 16 months, at a distance of more than 150 kilometres from the Dutch border
- The employee has specific expertise that is not or is only barely available in the employment market in the Netherlands
- The employee has a valid decision
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The 30% Tax Facility for employees from abroad has a maximum term of 5 years (from 2019).
This term may be reduced if:
- You have already worked or stayed in the Netherlands before taking up this employment. In this case, the term will be reduced by the length of time previously stayed/worked in the Netherlands
- The request to be considered for the 30% Tax Facility is not submitted within 4 months of starting the job in the Netherlands
In order to apply for the 30% Tax Facility for incoming employees, you must have permission from the Belastingdienst (Tax and Customs Administration). The request has to be submitted jointly, by employer and employee, to the Belastingdienst, which will make a decision. If in disagreement with the decision, it is possible to file an objection.
If the request has been made within 4 months of the start of the employee's employment, the facility can apply from the first day of employment. If the request was made later, the facility will be applied from the first day of the month following the month in which the request was made. The commencement date of the facility will be specified in the ruling from the Belastingdienst.
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In the 2024 Tax Plan a measure was adopted to scale back the 30% facility. This measure entails that the tax-free allowance that may be paid, decreases during the course of 5 years:
- Over the first 20 months a maximum of 30% of the salary may be paid as a tax free allowance
- The percentage drops to 20% for the following 20 months
- And the percentage drops to 10% for the last 20 months
For employees that are already applying the 30% facility in December 2023, a transitional rule is provided under which the 30% facility will not be scaled back during the 5 year their 30% facility is in place.
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From 1 January 2025, the income standards for the 30% facility will be as follows:
- Lower income: taxable annual income exceeds €35,468 excluding untaxed compensation;
- Higher income: an employee's taxable annual income exceeds € 46,660 excluding the untaxed allowance.
Please note: if an employee's taxable wages fall below the income standard after application of the untaxed reimbursement, the employee will not be eligible for a full untaxed reimbursement of 30% of the wages. In that case, a lower untaxed reimbursement of less than 30% must be paid – referred to as a partiële toepassing (partial application) – so that the taxable wage meets the income standard.
Changes to the 30% facility following the implementation of the Belastingplan (Tax Plan) 2025
With effect from 1 January 2024, the 30% facility was changed to a 30-20-10% facility. As a result, the maximum untaxed remuneration became dependent on the maximum duration of the scheme. Except where transitional law would apply, the maximum untaxed remuneration was 30% for the first 20 months, 20% for the subsequent 20 months and 10% for the last 20 months of the maximum term.The Eerste Kamer (Senate) had agreed to this change under the condition that the 30% facility would be evaluated in 2024, after which kabinet (Cabinet) would have to come up with better proposals for adjusting the facility. In June 2024, the evaluation report Kunde, kosten en keuzes (Skills, costs and choices) was published, as a result of which new changes to the 30% facility were announced in the 2025 Tax Plan.
The 27% facility
The new plans indicate that the 30-20-10% scheme will be largely reversed with effect from 1 January 2025 and a flat rate of 30% untaxed compensation will again apply for the years 2025 and 2026. With effect from 1 January 2027, the scheme will be scaled down to a 27% scheme, where the untaxed compensation will be capped at 27% and stricter income standards will apply. The new income standard from January 2027 will be €50,436 for regular situations, and €38,338 for employees under 30 with a master's degree. These amounts will be indexed by the table correction factor for 2025, 2026 and 2027.
Transitional arrangements
There is a transitional arrangement for employees for whom the 30% facility was applied in payroll before 2024. A partial transitional arrangement applies to employees for whom the 30% facility was first applied in the payroll in 2024. The groups of employees can be categorised as follows:- Employees who activated the 30% facility before 2024: retain the right to a full 30% allowance after the 27% facility takes effect on 1 January 2027, provided the old (indexable) income standard of €46,107 (2024 amount) (excluding the untaxed allowance) is met. The employer can pay this group of employees up to 30% of the income tax-free for a period of up to 5 years.
- Employees who activated the 30% facility for the first time in 2024: retain the right to a full 30% allowance in 2024, 2025 and 2026, provided the old (indexable) income standard of €46,107 (2024 amount) (excluding the untaxed allowance) is met. From 1 January 2027, the percentage of the maximum untaxed compensation will be adjusted from 30% to 27%, but the old (indexable) income standard of €46,107 will still apply. This means that, depending on the maximum term, the employer can pay the employee a maximum of 30% in part and a maximum of 27% tax-free in part.
- Employees who activated the 30% facility for the first time in or after 2025: are not eligible for transitional arrangements. They will still be entitled to the maximum 30% allowance in 2025 and 2026, provided they meet the old (to be indexed) income standard of €46,107 (amount 2024). From 1 January 2027, the percentage of the maximum untaxed reimbursement will be adjusted from 30% to 27% as well as an increased (to be indexed) income standard of €50,436 (€38,338 for employees under 30 with a master's degree) will apply.
The above can be presented schematically as follows, where the amounts mentioned are still the 2024 amounts, before indexation to 2025 and beyond:
Category Income criteria Maximum tax-free reimbursement 30% facility activated before 1-1-2024 for the first time
Current income criteria (€46,107)
30%
30% facility activated in 2024 for the first time Current income criteria (€46,107)
30%; from 1-1-2027 decreased to 27% 30% facility activated in 2025 for the first time Current income criteria (€46,107); increased income criteria (€50,436*) from 1-1-2027 30%; from 1-1-2027 decreased to 27% Under 30 master’s degree holder,
30% facility activated before 1-1-2024 for the first timeCurrent income criteria (€35,048)
30% Under 30 master’s degree holder,
30% facility activated in 2024 for the first timeCurrent income criteria (€35,048)
30%; from 1-1-2027 decreased to 27% Under 30 master’s degree holder,
30% facility activated in 2025 for the first time
Current income criteria (€35,048); increased income criteria (€38,338) from 1-1-2027
30%; from 1-1-2027 decreased to 27%
* Amounts subject to annual indexation
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When the employee changes jobs, the 30% Tax Facility may be continued as usual. The period between the old and the new employment must not exceed 3 months. A new joint request together with the new employer must be submitted and the new employer must prove that the employee still fulfils the condition of possessing scarce, specific expertise.
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Employees making use of the 30% Tax Facility can opt to be treated as a partiële buitenlandse belastingplicht (partial non-resident tax payer) even if they are a resident taxpayer. This means that the employee will not be taxed on income from investment and savings outside the Netherlands.
The partial foreign taxpayer status will be abolished from January 1, 2025. However, this amendment is also subject to a transitional rule. Employees who are applying the 30% facility in December 2023 will still be able to use this tax scheme until December 31, 2026 at the latest.
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The 2023 Tax Plan regulated that the tax free allowance that can be paid based on the 30% facility would be capped. This capping will take effect from January 1, 2024. From then on, a tax free allowance of maximum 30% of salary up to the ‘Balkenende norm’ can be paid. In 2024, this income norm will be € 233,000 and thus an employer can give a maximum tax free allowance of € 69,900.
The capping applies to employees using the 30% facility from January 1, 2023.
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In addition to the 30% Tax Facility, school fees for an international school (or for the international department of a school in the Netherlands), may be reimbursed free of tax.
This is permitted if:
- The curriculum at the school (department) is based on a international system.
- The school (department) is in principle only open to children of seconded employees.
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Employees who qualify for the 30% ruling and their family members can exchange any foreign driving licence for a Dutch driving licence. To apply for the exchange of the driving licence under this rule, bring the following items to the municipal office desk for driving licences:
- Complete a gezondheidsverklaring (Certificate of Fitness Statement) form at the Centraal Bureau Rijvaardigheidsbewijzen – CBR website. A DigiD is required to do so. The form is only in Dutch. There is a fee for the form (digitally).
- Take this form with to the municipality, along with the following documents:
- Current valid driving licence, which will not be returned
- Passport or identity card
- Passport-sized photo taken according to Dutch regulations
- Proof of qualification for the 30% Tax Facility
- Cash or debit/credit card to pay the exchange fee
When the licence is ready for collection the applicant will be notified. A passport or identity card is required for proof of identity when collecting the new licence.
Go to our Education & Careers section for a list of international schools in the Maastricht Region.
TIP: If the total extraterritorial expenses exceed the allowance paid under the 30% Tax Facility, it is possible to have the actual expenses reimbursed. In this case however, evidence for these extraterritorial expenses will have to be provided.