Frequent question: What is the 30 percent tax rule in the Netherlands?

Who qualifies for the 30% ruling?

In order to apply the 30% ruling, there must be an employer and an employee. The 30% ruling is specifically privileged to employees posted or recruited from abroad by a Dutch employer or a foreign employer registered as a Dutch wage tax withholding agent.

How do you calculate 30% ruling?

The 30% ruling is coordinated and supervised by the Belastingdienst (Dutch tax office). It’s possible to calculate the fiscal benefit of the ruling by calculating 30% of your gross annual salary. This amount is free from payroll and income tax.

Can Dutch citizens get 30% ruling?

Answer: An incoming employee with the Dutch nationality can indeed qualify for the 30% ruling. … This means you must have been outside the Netherlands for a period of 25 years before your return to the Netherlands or the start of your employment contract in the Netherlands.

How long is 30% ruling?

If you have already been working in the Netherlands for some years, you can still apply but previous years will not be taken into account and will be deducted from the the term that you can receive the 30% ruling. The processing period may last from one to six months depending on the case.

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How can I avoid tax in Netherlands?

If you own property in another country, you can usually avoid paying tax on it through the double taxation deduction.

1 Personal deductions

  1. Charitable donations.
  2. Study expenses.
  3. Healthcare costs (if not covered by insurance)
  4. Alimony payments.
  5. Life annuity payments.

Can you get 30% ruling twice?

Yes, you can switch employers and continue the 30%-ruling on your new employment. You and your new employer will need to submit a new application for the 30%-ruling. The gap between your previous job and the new one cannot be more than 3 months.

What do you do after 30% ruling ends?

After your 30% ruling has ended, you can still allocate certain income to each other in an effective way, but limited tax levied on Box 2 and Box 3 income is no longer the case. All in all, this means that losing your 30% ruling may have consequences for your partner’s income tax return as well.

How is bonus taxed Netherlands?

If you are then paid a bonus, or holiday pay or any other amount by your employer that is subject to wage tax, the percentage applicable can be 52%, as you are or are about to exceed the threshold to the 52% tax bracket. … Hence the higher amount of tax than 51,75% is possible.

How much salary is good in Netherlands?

According to the Centraal Planbureau (CPB), in 2021 the median gross income for a person working in the Netherlands is 36.500 euros annually or 2.816 euros gross per month. A salary can vary greatly from the median income as it is influenced by age, sector, professional experience and hours worked.

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Is healthcare free in Netherlands?

Your Dutch health insurance policy entitles you to free medical treatment in the Netherlands, including standard prescriptions. Public health insurance does not cover some treatment, such as dental treatment and physiotherapy. However, you will need a private insurance policy.