Quick answer
The Netherlands' main incentive is the 30% ruling: qualifying employees recruited from abroad receive up to 30% of their salary tax-free for up to five years. In 2026 you need a taxable salary above about EUR 48,013. The rate drops to 27% from 2027. There is no digital nomad visa, and freelancers cannot use the ruling.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →You have a job offer in Amsterdam, or you want to base your freelance business in the Netherlands. You have heard of the 30% ruling and want to know if it applies to you. This guide covers who qualifies in 2026, what it saves, and what self-employed people can use instead.
Netherlands expat and digital nomad incentives in 2026: the key figures
| Item | Rule (2026) |
|---|---|
| 30% ruling – tax-free allowance | Up to 30% of salary in 2026; 27% from 1 January 2027 |
| Maximum duration | 60 months (5 years), reduced by earlier Dutch stays |
| Salary threshold | Taxable salary above EUR 48,013 (EUR 36,497 if under 30 with a Dutch-level master's) |
| Salary cap for the allowance | Ruling applies up to the public-sector pay norm, about EUR 262,000 |
| Distance condition | Lived more than 150 km from the Dutch border for at least 16 of the 24 months before starting |
| Application deadline | Within 4 months of starting work for full retroactive effect |
| Partial non-resident status (Box 2/3) | Abolished from 2025; transition until end of 2026 for 2023 rulings |
| Digital nomad visa | None |
Is this guide for you?
Read on if you…
- are moving to the Netherlands for a job and were recruited from abroad;
- want to know what the 2027 change means for your net pay;
- are self-employed and want the Dutch alternatives.
Probably not your case if you…
- already lived within 150 km of the Dutch border before your job started;
- just want to work remotely from the Netherlands for a few weeks as a tourist.
What is the 30% ruling and who qualifies?
The 30% ruling (30%-regeling) lets your employer pay part of your salary as a tax-free allowance. It is meant to cover the extra costs of living abroad – the extraterritorial costs. The tax office does not ask for receipts.
You qualify if all of these apply:
- You are an employee of a Dutch employer, or of a foreign employer registered for Dutch payroll tax.
- You were recruited or seconded from abroad.
- You lived more than 150 km from the Dutch border for more than 16 of the 24 months before your first working day.
- You have specific expertise that is scarce in the Dutch labour market. In practice, the salary threshold proves this.
- Your employer and you file a joint application with the Belastingdienst.
Here's the catch: the ruling is for employees only. Freelancers and owners of a sole proprietorship cannot use it. A director-shareholder of their own Dutch BV can, in principle, if all conditions are met.
Researchers and young graduates
Scientific researchers at recognised institutions do not need to meet the salary threshold. Employees under 30 with a master's degree have a lower threshold of about EUR 36,497.
How much does the 30% ruling save you?
The allowance is taken off your gross pay before tax. The threshold is tested on the salary after the allowance. So your total pay must be about EUR 68,590 (48,013 ÷ 0.7) to use the full 30%.
In 2026, Dutch income tax on work runs from 35.75% to 49.50%. The top rate starts above EUR 78,426. At the top band, every euro moved into the allowance saves almost 50 cents.
| Gross salary | Tax-free allowance (30%) | Taxable salary | Approx. yearly saving |
|---|---|---|---|
| EUR 70,000 | EUR 21,000 | EUR 49,000 | about EUR 7,900 |
| EUR 100,000 | EUR 30,000 | EUR 70,000 | about EUR 13,800 |
| EUR 150,000 | EUR 45,000 | EUR 105,000 | about EUR 22,300 |
These are rough 2026 figures that ignore tax credits. Credits shrink as income rises, so the real saving can be slightly higher.
What changes in 2027?
From 1 January 2027 the maximum allowance becomes 27%. The earlier plan for a 30/20/10 step-down was dropped. The salary thresholds will rise in 2027 as well.
International school fees
On top of the ruling, your employer can reimburse international school fees for your children tax-free. That is worth checking if you have kids.
What changed for Box 3 and foreign assets?
Until 2024, ruling holders could opt for partial non-resident tax status. That meant no Dutch tax on foreign savings and investments in Box 3 and on foreign Box 2 holdings.
That option ended on 1 January 2025. If your ruling was applied in your 2023 payroll, you keep it until the end of 2026. From 2027 at the latest, your worldwide investments are taxed in Box 3 like everyone else's. Read our capital gains tax guide for the Netherlands to see what that means.
What can freelancers and founders use instead?
There is no digital nomad visa. Working remotely on a tourist stay is not a residence route, and staying long can still make you Dutch tax resident.
For the self-employed, the incentives are smaller but real:
- Self-employed deduction (zelfstandigenaftrek): EUR 1,200 in 2026 if you work at least 1,225 hours a year in your business.
- Starter's deduction (startersaftrek): EUR 2,123 extra, up to three times in your first five years.
- SME profit exemption (MKB-winstvrijstelling): 12.70% of profit after deductions is exempt.
- Small business VAT scheme (KOR): no VAT charging if Dutch turnover stays below EUR 20,000.
More on deductions in personal tax deductions and benefits in the Netherlands.
Residence routes for non-EU nationals
EU, EEA and Swiss citizens can move freely. Others usually need one of these:
- Highly skilled migrant permit – employer-sponsored, with salary thresholds.
- EU Blue Card – for higher-qualified employees.
- Self-employment permit – based on a points test of your business plan.
- DAFT – an easier route for US and Japanese entrepreneurs under friendship treaties, with EUR 4,500 to invest in the business.
- Start-up visa – one year with an approved facilitator.
The IND (Immigration and Naturalisation Service) handles all of them. The full move process is in obtaining Dutch tax residency.
Example – Ravi, Indian software engineer moving from Bangalore
An Amsterdam scale-up hires Ravi in February 2026 at EUR 100,000 gross. He lived 7,000 km away, so he meets the distance test. His employer files the joint application in March, within four months. EUR 30,000 is paid tax-free, his taxable salary is EUR 70,000, and he saves about EUR 13,800 in 2026. From 2027 the allowance drops to EUR 27,000, cutting his saving by roughly EUR 1,500 a year.
Ravi's saving depends on timing, salary and paperwork. Yours does too.
Check whether you qualify for the 30% ruling before you sign your contract.
Find my savings →Common mistakes (and what they cost)
- Applying after four months → the ruling only starts from the first day of the month after the application, so you lose months of tax-free pay.
- Negotiating a salary just at the threshold → after the 30% cut, your taxable salary falls below the minimum and you lose the ruling for the year.
- Assuming freelancers qualify → you plan on a saving that does not exist.
- Forgetting earlier Dutch stays → past time in the Netherlands shortens your 60 months.
- Ignoring the Box 3 change → foreign investments become taxable and you file an incomplete return.
Frequently asked questions
What is the 30% ruling in the Netherlands in 2026?
It is a tax-free allowance of up to 30% of salary for employees recruited from abroad with scarce expertise. It lasts up to five years. In 2026 your taxable salary must exceed about EUR 48,013, or about EUR 36,497 if you are under 30 with a master's. From 2027 the maximum falls to 27%.
Can freelancers get the 30% ruling?
No. The ruling only applies to employees on a Dutch payroll. Freelancers and sole proprietors use the entrepreneur's deductions instead: the self-employed deduction, the starter's deduction and the SME profit exemption. Some founders become employees of their own Dutch BV, but that only works if all conditions, including recruitment from abroad, are met.
Does the Netherlands have a digital nomad visa?
No. The Netherlands does not offer a visa for remote workers employed abroad. Non-EU nationals need a regular permit, such as the highly skilled migrant permit, a self-employment permit or the DAFT route for US and Japanese citizens. EU citizens can live and work freely.
What is the 150 km rule?
To qualify for the 30% ruling, you must have lived more than 150 km from the Dutch border for more than 16 of the 24 months before your first working day. This excludes most residents of Belgium and western Germany. The distance is measured in a straight line.
Can I keep the ruling if I change employer?
Yes, if you start the new job within three months of leaving the old one and still meet the salary threshold. Your new employer must file a new application. The original end date stays the same, so changing jobs does not restart your five years.
Is partial non-resident status still available?
Not for new ruling holders. It was abolished from 1 January 2025. If your ruling was already applied in your payroll for 2023, you can keep it until the end of 2026. After that, your foreign savings and investments are taxed in Box 3 like any resident's.
Related guides
- Moving to the Netherlands: becoming tax resident
- Personal tax deductions and benefits in the Netherlands
- Capital gains and Box 3 in the Netherlands
- Netherlands tax system overview
- Expat tax incentives in Germany
- Expat tax incentives in Austria
- All country tax guides
Sources
- Belastingdienst – Dutch Tax and Customs Administration
- Wetten.overheid.nl – Wage Tax Act 1964 and Implementation Decree
- IND – Immigration and Naturalisation Service
- Business.gov.nl – Government information for entrepreneurs
- PwC Worldwide Tax Summaries – Netherlands (secondary check)
This guide is general information, not personalised tax advice. See how we research and review.
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