The Dutch expat scheme is changing in 2027: what HR/Payroll needs to know now

From 1 January 2027, the Dutch expat tax scheme (commonly known as the 30% ruling) will change in a way that directly affects both employers and internationally hired employees. The maximum tax-free allowance will be reduced from 30% to 27% and the salary thresholds used to qualify for the scheme will increase.

For HR teams and globally mobile employees, this is more than a technical adjustment. It has a direct impact on net salary expectations, employment costs, and long-term workforce planning.

In this article, we outline the key changes and highlight why the timing of an employee’s start date under the scheme becomes increasingly relevant.

From 30% to 27%: a structural change in net remuneration

The most visible change is the reduction of the tax-free allowance. Where employers can currently apply a maximum of 30% of the gross salary tax-free, this will be reduced to 27% from 2027 onward for new applications and eligible cases.

While the percentage change may appear limited, the impact on net salary can be significant, especially for employees who rely on the scheme as part of their international compensation package.

For HR professionals, this means that existing compensation benchmarks for international hires may need to be reassessed.

Salary thresholds will increase in 2027

Alongside the percentage reduction, the Dutch government is increasing the minimum salary thresholds required to qualify for the expat scheme.

This means that:

• Fewer employees may qualify under the new thresholds

• Cost-to-company calculations for international hires may change

• The gap between “eligible” and “non-eligible” roles may widen

These adjustments are intended to rebalance the scheme, but in practice they add complexity to international hiring strategies.

Transitional rules: not all employees are affected in the same way

A key element often overlooked in initial assessments is the transitional rules. Employees who already make use of the expat scheme before specific cut-off dates may, in many cases, remain under the current rules for the remainder of their five-year eligibility period.

However, this protection is not universal. The impact depends on:

• When the expat scheme was first granted

• Whether eligibility was maintained continuously

This creates a clear distinction between legacy cases and new entrants to the scheme after the legislative change. For organizations with a large international workforce, this can result in multiple parallel compensation regimes within the same company.

The following tables clearly illustrates the differences between the different groups (differences are highlighted in orange):

Notes

* The increased salary norms was announced in the 2025 Tax Plan and was set at €50,436 and €38,338 (2024 price level) and are subject to annual indexation. The amounts shown here already include the announced 2026 indexation of 2.90%. The 2027 indexation is not known yet and will be published at a later stage.

Different salary thresholds in 2027: why timing matters 

 One of the more complex consequences of the reform is that different salary thresholds may apply in 2027, depending on when the employee started using the expat scheme. 

 In practice, this means that:

•  Employees who entered the scheme under earlier conditions may be assessed under different thresholds than new entrants 

•  Payroll and HR teams must distinguish between different cohorts of expats

•  Misalignment can lead to incorrect assumptions about eligibility or net salary outcomes

 This structure is not always immediately visible in standard HR processes, but it becomes highly relevant when modeling long-term compensation packages or planning international recruitment. 

What this means for HR and global mobility strategies

While the legislative changes are still some time away, their impact should not be underestimated.

Organizations that proactively review their international compensation frameworks can:

•  Avoid unexpected increases in employment costs
  

•  Ensure consistent employee communication around net salary changes

• Maintain competitiveness in international recruitment markets

 Most importantly, they can prevent uncertainty for employees whose financial planning is directly tied to the expat scheme. 

How Exterus can support

The upcoming changes introduce a level of complexity that goes beyond standard payroll or HR advisory questions. Especially when dealing with mixed populations of employees under different transitional regimes, clarity becomes essential.

At Exterus, we help organizations translate these legislative changes into clear, workable HR and mobility policies. From impact assessments to employee communication strategies, we support you in making informed, confident decisions.

If you would like to understand what these changes mean for your organization specifically, we are happy to help you explore the implications in more detail.