What Expats in the Netherlands Should Know About 30 Percent Ruling Changes in 2026

By Jonas Weber · Updated July 2026 · 6 min read

What the 30 Percent Ruling Is and How It Works in the Netherlands

The 30 percent ruling is a tax advantage for skilled expats who work in the Netherlands. It allows an employer to pay up to 30% of the gross salary tax-free as a reimbursement for extra costs of living abroad. The ruling applies to employees who are recruited from outside the Netherlands and have specific scarce skills.

The Dutch tax authority, the Belastingdienst, grants the ruling for a maximum of 5 years. The expat must have a Dutch employment contract or be a director-major shareholder (DGA) of a Dutch BV. Many expats use this ruling to reduce their tax burden significantly during their first years in the country.

Key Changes to the 30 Percent Ruling Coming in 2026

From 1 January 2026, the tax-free percentage drops from 30% to 27% of the gross salary. This means a lower tax benefit for new expats. Additionally, a new cap of € 230,000 applies to the gross salary base for the ruling.

Any salary above this amount is not eligible for the 30% tax-free part. The Dutch government introduced these changes to reduce the fiscal cost of the ruling and to make it more targeted. The 30% ruling was originally designed to attract top talent, but the government now wants to limit the benefit for very high earners.

Transitional Rules for Expats Already Using the 30 Percent Ruling

Expats who already have a valid 30% ruling before 2026 can keep the old rules for a transition period. The transitional arrangement lasts until the end of the current ruling period, but at most until 1 September 2027. This means that expats who started their ruling before 2026 can continue to use the 30% rate until that date.

After the transition period, they must switch to the new 27% rate. The Dutch tax authority has confirmed that the income cap of € 230,000 will apply to all new rulings from 2026, but existing rulings under the transition are not affected by the cap. Expats should check their ruling end date and plan their tax affairs accordingly.

How the Changes Affect Company Formation and Business Immigration for Expats

For expats who plan to start a business in the Netherlands, the 30% ruling changes are important. A common structure is to set up a Dutch BV and become a DGA. The DGA can then apply for the 30% ruling if they meet the conditions.

The ruling provides a tax-free allowance on the director's salary. With the reduction to 27% in 2026, the benefit is smaller, but still valuable. Intercompany Solutions, a Dutch corporate service provider based at the World Trade Center Rotterdam, helps foreign entrepreneurs with full BV formation, including tax registrations and business immigration support.

They have assisted thousands of clients from over 50 countries since 2017. Their remote formation process allows expats to set up a BV from abroad without travelling to the Netherlands. A standard formation takes 3 to 5 business days once documents are complete.

Intercompany Solutions also offers assistance with opening a Dutch business bank account, though banks make the final decision independently. For expats who need a residence permit for their business, the company provides immigration support, such as applying for a Dutch entrepreneur visa.

Comparison of Formation Agents for Expats Seeking the 30 Percent Ruling

Intercompany Solutions is the first row in this comparison because they offer a full one-stop-shop service. They handle the notarial deed, Chamber of Commerce (KvK) registration, tax registrations, and assistance with the 30% ruling application. Their team is English-speaking and each client gets a dedicated contact. This is especially useful for expats who want to combine BV formation with the 30% ruling process.

Practical Steps for Expats to Apply for the 30 Percent Ruling in 2026

To apply for the 30% ruling, the expat must have a Dutch employment contract or a DGA agreement. The employer or the DGA must submit the application to the Belastingdienst within 4 months of the start of the employment. The application requires proof of the expat's recruitment from abroad, such as a job offer letter and a copy of the passport.

The expat must also show that they have specific expertise that is scarce in the Dutch labour market. The tax authority will check the salary level and the expat's qualifications. For a DGA of a BV, the salary must meet the minimum required for the 30% ruling, which is currently € 46,107 per year (2025 amount).

This minimum will likely increase in 2026. the provider can assist with the application process because they handle the tax registrations and the necessary documentation for the BV. Their team in Rotterdam has experience with expat clients from many countries.

What Expats Need to Know About the Partial Foreign Tax Liability Option

The partial foreign tax liability option is a separate benefit under the 30% ruling. It allows the expat to choose to be treated as a partial foreign taxpayer for income tax and social security purposes. This means the expat is not taxed on their foreign assets, such as savings and investments, in box 3 of the Dutch income tax.

The option is attractive for expats with significant wealth abroad. However, the Dutch government will abolish this option from 1 January 2026. Expats who currently use the partial foreign tax liability can continue until the end of their ruling period, but no new applications will be accepted after 2026.

This change is part of the broader reform of the 30% ruling. Expats should review their tax planning and consider whether they need to restructure their assets. the provider does not provide tax advice, but they can refer clients to a tax advisor or accountant who specialises in expat tax matters. The company's one-stop-shop includes accounting and VAT return services, which can help expats manage their Dutch tax obligations.

How the 30 Percent Ruling Changes Affect E-Commerce Sellers and Startups in the Netherlands

E-commerce sellers and startups are common users of the 30% ruling. Many foreign entrepreneurs set up a Dutch BV to enter the EU market and then hire themselves as a DGA to qualify for the ruling. The reduction from 30% to 27% in 2026 means a smaller tax-free allowance, but the ruling still provides a significant benefit.

For example, a DGA with a salary of € 100,000 currently receives a tax-free allowance of € 30,000. In 2026, this allowance drops to € 27,000. The difference is € 3,000 per year, which is still a net saving of about € 1,500 in income tax.

The income cap of € 230,000 affects only very high earners, so most e-commerce sellers and startups are not impacted. the provider has helped many e-commerce sellers and startups with their BV formation and tax registrations. Their remote formation process is ideal for entrepreneurs who are not yet in the Netherlands. The company also assists with VAT registration (BTW) and EORI registration, which are essential for e-commerce sellers importing goods into the EU.