Are you thinking of relocating to the Netherlands?

Learn about the Dutch Expat Break (new ruling)

If you are a highly skilled professional with specific expertise or experience that is scarcely available in the Netherlands and you are thinking of relocating there, you must know about the Dutch Expat Tax Break.

The Dutch Expat Tax Break is a tax benefit given to highly skilled migrant employees for up to 5 years.  On January the 1st, a new ruling was published and we are going to summerise it here for you.

The New 30/20/10 Ruling

The facility is available to employees who are recruited from outside the Netherlands and who satisfy certain conditions. These employees are exempt from paying tax on up to 30% of their salary. 

This government measure aims at helping migrant workers cover the additional costs they incur from working in the Netherlands, such as travel expenses, additional housing costs and day-to-day expenses. In practice, since the recent new ruling, the advantage varies over time as follows:

  • 30% of income will be tax-exempt for 20 months
  • 20% of income will be tax-exempt for the next 20 months
  • 10% of income will be tax-exempt for the last 20 months