Can you lose the 30%-Ruling?

Congratulations! You successfully filed the application for the 30%ruling with all the relevant information, and proved that your contract salary meets the required minimum income threshold. Now, with your grant letter in hand, you can simply enjoy the benefits of the 30%-ruling. Unfortunately, the title of this blog post suggests otherwise. Below we explain what to do -and more importantly, what not to do- to keep your 30%-ruling.

Continued eligibility for the 30%-ruling

The 30%-ruling allows employers to split the agreed compensation package of the expat into 70% taxable salary and designate up to 30% as a tax-free expat allowance. This taxable salary portion needs to be more than the minimum annual taxable salary requirement. For 2025, this is indexed at €46.660, or €35.468 if you are younger than 30 and have a qualifying master’s degree (see below).

This minimum salary requirement is not only relevant when filing the application but also remains a requirement for the duration of your grant. If your taxable salary falls below this minimum level in any given year, you will lose the 30%-ruling with retroactive effect to the first day of that year. The ruling is then lost for the duration of your stay in The Netherlands.

For this reason, you may not receive the full 30% of your income as a tax-free allowance if your income is close to the minimum salary requirement. Instead, a lower tax-free percentage may apply to ensure compliance with the minimum salary threshold (see examples 1 and 2 in the next section below).

PLEASE NOTE: If 2025 or later is the first time you make use of the 30%-ruling, then starting in 2027, your minimum annual salary requirement will be subject to a 9% increase, in addition to the annual indexation.

Younger than 30 and a master’s degree

The minimum annual salary requirement for the 30%-ruling is €46.660 for 2025. However, for professionals under the age of 30 with a qualified master’s degree, the minimum annual salary requirement is €35.468 for 2025.

This lower minimum salary requirement can help maximize the benefit of the 30% -ruling (see Examples 2 and 3 below). To be eligible for the lower minimum salary requirement you must have a qualified master’s degree and approval from the Dutch tax authorities. Dutch master’s degrees are considered qualified, but non-Dutch master’s degrees need to be evaluated and certified by the IDW (https://idw.nl/en/) before the Dutch tax authorities approve them.

The request for approval of the lower minimum salary requirement is generally filed with the 30%-ruling application. However, this request can also be filed as a supplement after the ruling is granted.

PLEASE NOTE: The month after you turn 30, you must meet the regular minimum salary requirement. Having to meet a minimum salary of €46.660 (2025) instead of €35.468 (2025) is a significant jump that requires an upfront salary review to ensure that you meet the new requirement.

Example 1

Agreed compensation package incl. holiday allowance:    €75.000
€75.000 x 30% = €22.500 (= maximum possible tax free allowance)

€75.000  - €22.500 = € 52.500 (= taxable income)

€ 52.500 is higher than the minimum salary requirement for 2025 (€46.660)

Tax-free allowance under the 30%-ruling: €22.500 (= the full 30% tax-free)

Example 2

Agreed compensation package incl. holiday allowance:    €55.000
€55.000 x 30% = €16.500 (= maximum possible tax free allowance)

€55.000  - €16.500 = € 38.500 (= taxable income)

€ 38.500 is lower than the minimum salary requirement for 2025 (€46.660)

Tax-free allowance under the 30%-ruling should therefore be limited to max € 8.340 or 15% tax-free (€55.000 - €46.660)

Example 3

Same situation as Example 2. However, in this case, the employee is 28 years old and has a qualified master’s degree.
€55.000 x 30% = €16.500 (= maximum possible tax free allowance)

€55.000  - €16.500 = € 38.500 (= taxable income)

€ 38.500 is higher than the minimum salary requirement for young masters in 2025 (€35.468)

Tax-free allowance under the 30%-ruling is € 16.500 (the actual maximum of 30% tax-free)

The above examples seem straightforward enough. However, we often encounter situations like Example 2 where the full 30% was incorrectly designated as the tax-free expat allowance in the payroll, especially in companies unfamiliar with the 30%-ruling. This is often only flagged when re-applying for the 30%-ruling after changing employers or during an audit by the Dutch tax authorities, which can result in the 30%-ruling being revoked retroactively. This can happen years later, meaning that the expat may be liable for several years of additional tax.

Working part-time, taking unpaid leave or parental leave and the 30%-ruling

When working part-time, taking unpaid leave or a sabbatical, your income is reduced and you run the risk of your income falling below the minimum annual(ized) salary requirement. It is therefore recommended that you calculate the effect on your salary before deciding to take that sabbatical or to work part-time.

However, an exception is made for salary reductions due to qualified parental, adoption, and maternity leave. If your income falls below the minimum salary requirement because of this leave, your eligibility for the 30%-ruling remains in effect.

Change of employer and the 30%-ruling

When changing employers, it is possible to transfer the 30%-ruling to your new employer, provided that the period between the two jobs is less than 3 months and that you continue to meet the minimum salary requirements. If the period between employer’s exceeds this 3-month term, then you lose the 30%-ruling.

Conversely, if there is an overlap between the two employers -for example, still staying on the payroll while transferring your work to your successor - this overlap may impede the transfer of the 30%-ruling and result in losing the ruling altogether.

Conclusion

The 30%-ruling offers significant tax advantages, but maintaining eligibility requires careful attention to salary thresholds, employment gaps, and leave policies. By staying informed and planning ahead, you can ensure that you continue to benefit from this ruling without unexpected financial consequences. If you have any doubts, consult with a tax advisor to safeguard your tax benefits and avoid unpleasant surprises.