30-4-2018

For expats: 30% ruling valid 5 years instead of 8 as of January 1st 2019

The tax advantage for highly skilled migrants working in The Netherlands, also known as the 30% ruling, is about to be changed. From January 1st 2019 it will be shortened from 8 years to 5 years. This change will affect not only newcomers, but also everyone that already benefits from the 30% ruling. The government plans will also affect the maximum loan capacity for expats.

Because of the 30% ruling, highly skilled expats only have to pay taxes over 70% of their gross salary in The Netherlands. The other 30% is tax-free. This tax advantage was designed to help expats overcome their high costs of relocating to our country. The ruling makes it easier to attract particular expertise that these specific migrants have.

Evaluation

The Dutch government asked research bureau Dialogic to evaluate the ruling. It turns out that 80% of employees that receive the tax advantage use it for five years or less. The other 20% is mostly planning a long-term stay in The Netherlands.

Need more info? We can help!

Do you want to know more about the changes in the 30% ruling and how this will affect your mortgage? Feel free to schedule an appointment with one of our experts!