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

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.

 

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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.

 

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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.

 

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