30 percent ruling

The 30 percent ruling gives employers the possibility to pay a part of the wage, up to 30%, tax-free for employees from abroad who temporarily work in the Netherlands. Very simply put, it can be seen as compensation for relocation.

It concerns a compensation for the additional costs that incurs for these employees in order to be able to work in the Netherlands, such as travel expenses, costs for housing and living expenses. The regulation is intended, among other things, to attract employees from abroad with a specific expertise that is not or scarcely present in the Netherlands.

For many years The Netherlands has been well-known for its High Tech Industry, represented by the Brainport Eindhoven.

Due to the scarcity of candidates in this business area we benefit our extensive international network by searching abroad for matching candidates. For example very specific candidates with a technical education (BSc. or MSc). in Mechanical Engineering, Physics, Industrial Engineering, Electrical Engineering or similar and a minimum of 1-year relevant work experience are in high demand.

30 percent ruling in the Netherlands

As a leading global recruiter, we see more companies and professionals make use of the 30 percent ruling.

Not just the big corporates but also companies that operate further down the supply chain. The opportunities have been there for some time already, but companies only recently started to look for different solutions to attract candidates.

Companies increasingly are open to get foreign contribution to their workforce, for which they can get good compensation.

At this stage (end of 2018), the regulation can still be used up to 8 years. In our surrounding countries, you can only benefit from similar regulations for 5 years. The Dutch government has plans to reduce the duration of the regulation from 8 to 5 years as of 1 January 2019. We will be sure to keep this information up-to-date for your future reference.

If you have any interest in the regulation or want to start a new opportunity in High Tech in The Netherlands, I invite you to contact Hays and we will be sure to service you throughout the on boarding process.

Are you temporarily working in the Netherlands?

Then you may incur extra costs, for example because the cost of living here is more expensive than in your country. Your employer may reimburse these so-called extraterritorial costs to you untaxed.

Instead, your employer may also choose to pay 30 percent of your salary, including reimbursement, tax-free to you.

Click here to see if you meet the conditions to use the 30% ruling.

Do you want to use the 30% regulation?

Then complete a request together with your employer on the website of the Dutch Tax Authority.

Source: Dutch Tax Authority

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