The Dutch expat scheme (previously known as the 30% ruling) provides a tax-free reimbursement for qualifying employees recruited from abroad to work in the Netherlands.
The Dutch government has confirmed that the 30% ruling for international employees will remain in place, but with important changes from 2027 onwards. The tax-free allowance will be reduced from 30% to 27%, and stricter salary requirements will apply to new entrants.
Under the current scheme, eligible employees recruited from abroad can receive up to 30% of their salary as a tax-free allowance for a maximum of five years. In 2026, the general salary threshold is €48,013, with a lower threshold for qualifying employees under 30 with a master's degree.
A key aspect of the reforms is the transitional arrangement. Employees who were already benefiting from the 30% ruling on or before 31 December 2023 will retain the existing 30% benefit after 2027. Employees who entered the scheme in 2024 will move to the 27% rate but keep the current salary requirements. Those entering from 2025 onwards will be subject to both the lower 27% rate and the new, higher salary thresholds.
In addition, the tax benefit is capped at a maximum salary base of €262,000. Income above this threshold is excluded from the calculation of the tax-free allowance.
Ahead of Prinsjesdag (Budget Day) 2026, the expectation is that the government will largely maintain the previously announced changes to the Dutch expat scheme (expatregeling), formerly known as the 30% ruling. So as things stand, the tax-free allowance is set to decrease from 30% to 27% from 1 January 2027, with no further changes currently anticipated.
For employers that rely on international talent, the changes may increase recruitment costs and reduce the overall attractiveness of Dutch compensation packages. HR teams are therefore advised to review current expat populations, assess the impact of transitional rules, and prepare for the revised framework ahead of 2027.
For further information, please contact one of our tax professionals.
