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Posted on October 08 2024

What do you mean by the 30% ruling for the EU Blue Card?

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By  Editor
Updated October 08 2024

The 30% ruling for the EU Blue Card is a tax benefit that the Dutch government introduced. It is applicable for individuals or foreign workers who are employed from outside the Netherlands to come and seek temporary work there. As per the 30% ruling, employers of these individuals will be required to pay 30% of their overall salary without taxes. The 30% ruling only applies to a maximum salary of the Standard Remuneration Act. The scheme was implemented to support foreign employees for expenses and relocation to the Netherlands. As per the recent update, the latest changes to the 30% ruling suggest that employees who were issued the 30% ruling in or before 2023 can benefit from the tax-free 30% rule for a maximum of five years. However, the same may not apply to recent applicants (those applying this year or 2025). Individuals applying in 2024 or later will have a 30% decrease every 20 months.

 

*Want to apply for an EU Blue Card? Let Y-Axis assist you with the process.

 

Requirements for the 30% Ruling

Individuals are required to fulfill the below requirements for the 30% ruling. To be applicable for the 30% ruling, you must:

 

  • Be a foreign employee.
  • Have a legal work permit.
  • Have a written statement from the employer stating that the 30% ruling will apply to you.
  • Not have resided in the Dutch area for over eight months in the recent 24 months before the employment start date in the Netherlands.
  • Fulfill the yearly salary criteria of €46,107 (for 2024)
  • Fulfill the yearly salary criteria of €35,048 if you have a Master’s degree and are under 30.

 

*Want to work in the Netherlands? Get in touch with experts at Y-Axis to guide you through the process.

 

What are the new changes announced to the 30% Ruling in 2024?

Here are some of the most recent changes announced to the 30% ruling in 2024:

 

  • Starting January 2025, partial non-resident tax status for boxes 2 and 3 taxation will be terminated.
  • Employees issued a 30% ruling in 2024 will not be able to take advantage of the 30% benefits for the full five years. The table below provides an overview.  

Tax percentage

Employment duration

30% taxes

1-20 months of employment

20% taxes

21-40 months of employment

10% taxes

41-60 months of employment

 

Note: The new changes may not affect individuals who began their employment in 2023 or before and those who started it before January 1, 2024.

 

*Are you looking for step-by-step assistance with Overseas Immigration? Contact Y-Axis, the world’s No. 1 overseas immigration consultancy, for end-to-end assistance!

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30% ruling for the EU Blue Card

Netherlands Blue card

30% ruling for EU Blue card

EU Blue card

Netherland Blue card

Overseas immigration

work in Netherlands

work abroad

Netherlands Tax Administration

residence permit

European work and residence

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