|Tax advantage for expats: The 30%-ruling|
Expats working in The Netherlands are entitled to the 30% ruling. It is a facility for employees from abroad who possess special expertise which is scarce on the Dutch labour market. The 30% ruling is applied on your renumuration (salary, bonus etc) and ensures that up to 30% of the gross renumeration received is not taxed since it is treated as a tax-free cost allowance! With a top tax rate of 52% application of the 30% ruling provides a major tax advantage!
Advantages of the 30% ruling are:
In 2019, the annual taxable salary for an employee must be at least € 37.743 or € 53.918 (Gross salary). A lower salary of at least € 28,690 or € 40.968 (gross salary) is applicable for those who have completed a Master's degree and are younger than 30 years old. Scientific researchers, employees working in scientific education or doctors in training do not require a minimum salary in order to apply for the 30% ruling.
Attention: If you change employer you must reapply for the 30% ruling within 3 month of ending your previous job contract.