What is the expat scheme? 🧐
The expat scheme (30% ruling) is a tax benefit for people from abroad who come to work temporarily in the Netherlands. If you meet the requirements, you receive 30% of your gross salary tax-free. This is meant to cover extra expenses, such as moving, housing, or school for your children. Your employer must apply for this benefit, and it is valid for a maximum of five years. The application is submitted to the Dutch Tax Office by your employer.
Requirements for the expat scheme
To be eligible for the expat scheme, several conditions must be met:
- Salary 💰 You must earn at least €46,660 per year (this amount is indexed annually). If you are younger than 30 and have a master’s degree, a lower threshold applies: €35,468 per year (figures for 2025).
- Nationality & expertise 🤓 The employee must come from abroad and must not have Dutch nationality. They must also have specific expertise that is scarce or unavailable on the Dutch labour market.
- Maximum allowance and salary cap 🤑 In 2025, you can receive a maximum tax-free allowance of €73,800, which corresponds to an annual salary of €246,000.
Changes to the expat scheme ⚠️
The expat scheme will change in the coming years. In 2025 and 2026, the tax-free allowance will remain a maximum of 30% of the annual salary. From 2027 onwards, this will be reduced to a maximum of 27%. Employees who start using the scheme after 2024 will therefore receive less tax benefit.
From 1 January 2025, you will no longer be able to choose partial foreign tax liability in your tax return. This means that you lived in the Netherlands but were partly treated as a foreign resident for tax purposes. You did not have to pay tax on assets in box 2 and 3. If you already used the expat scheme before 2024, transitional rules allow you to keep using this option until the end of 2026.
Practical impact on your income 🤔
The expat scheme can significantly affect your net income as a foreign employee. Because part of your salary is tax-free, you do not pay Dutch income tax on that portion. This can save you hundreds or even thousands of euros per month, depending on your salary. For example, for someone earning €80,000 per year, the 30% ruling results in €24,000 of tax-free income.
Use Grassfeld to manage your finances
Are you a foreigner working in the Netherlands and want to stay on top of your personal finances? Use Grassfeld! This (free) app ensures you always have a clear overview of your income and expenses. Once you link your bank account(s), your money flows are automatically categorised, and you can receive monthly financial reports.
Grassfeld also helps you set and reach savings goals and manage your budget, so you do not spend more than you earn. Download the app now in your app store and keep control over your finances while working abroad.
