30% ruling knowledge migrants

Due to labor market shortages, it's increasingly challenging to find the right employees. This is especially true when seeking highly educated employees with specialized knowledge. Therefore, in certain situations, foreign employees with specific expertise can also work in the Netherlands. Special tax rules apply to this group of employees – known as knowledge migrants and expats.

What is the 30% ruling for knowledge migrants?

The 30% ruling for knowledge migrants is a tax-free allowance. As an employer, you can pay up to 30 percent of the salary tax-free to an employee. The application of the 30% ruling applies to knowledge migrants. These are employees from abroad who come to work in the Netherlands because they have special knowledge. Knowledge migrants are also called knowledge workers. The money from the tax benefit can be used by the knowledge migrants for the extra costs they incur to come work in the Netherlands, known as extraterritorial costs.

Do expats qualify for the 30% ruling?

Expats are also eligible. An expat is an employee who is temporarily dispatched by their company to another country. That employee then lives and works there. If the expat comes to work in the Netherlands, they can take advantage of the benefits of the 30% ruling.

What are extraterritorial costs?

Extraterritorial costs are costs that foreign employees incur when they come to work in the Netherlands. Examples of extraterritorial costs are travel expenses, visa costs, moving costs, or additional costs because they have to pay for two houses. Costs for a Dutch course or phone costs for calling abroad also fall under extraterritorial costs. The 30% ruling is intended for these costs.

When is an employee considered a knowledge migrant and eligible for the 30% ruling?

Special conditions apply to be eligible for the ruling. **The employee must be a knowledge migrant.** This means that the employee must have special knowledge about a certain topic. It is difficult for you to find someone with that knowledge in the Netherlands. Therefore, you sought an employee abroad. **The employee must have lived more than 150 kilometers from the Dutch border.** This must have been the case for the period of 2 years before they start working in the Netherlands. Employees from Belgium, Luxembourg, and parts of Germany, France, and the United Kingdom cannot use the ruling. They live too close to the Dutch border. **The employee has incurred extra costs to come work in the Netherlands.** The employee must have spent extra money to start working in the Netherlands. These extra expenses, known as extraterritorial costs, need to be shown with proof. Age and salary also play a role: If the employee is **younger than 30**, the taxable salary must be at least €35,048 (amount for 2024). This amount is without free allowances and excluding the 30% ruling. If the employee is **older than 30**, they must have a minimum taxable salary of €46,107 (amount for 2024). The salary norms **do not apply** to employees conducting scientific research or doctors in training. If an employee meets all these conditions, they can use the 30% ruling as a knowledge migrant. You, as the employer, can then pay 30% of the salary tax-free for the first 20 months.

How long can a knowledge migrant use the ruling?

An employee can use this for a maximum of 5 years. From 2024, the government will phase out the 30% ruling by 10% every 20 months: **1-20 months** = 30% tax-free **21-40 months** = 20% tax-free **41-60 months** = 10% tax-free More changes from January 1, 2024: The extra costs for moving to the Netherlands can no longer be reimbursed tax-free without limit. From 2024, you must report to the Tax Authorities every year how you want to reimburse the extra costs. You have two options: You reimburse the costs that the employee has actually incurred tax-free. You do this based on declarations that the employee submits to you. You reimburse the costs by paying out 30% of the salary tax-free. You do not need to indicate which costs the employee has actually incurred. From January 1, 2024, there is a maximum amount for this. You may reimburse the costs up to a maximum of 30% of the Wet Normering Topinkomens (WNT) for top salaries. This amount is determined annually.

How do you apply for the 30% ruling?

You apply for it together with the employee. You do this at the Tax Authorities. The Tax Authorities evaluate the application and provide a response within 10 weeks. Once you have received the decision, you can immediately apply the ruling. The application form can be found on the website of the [Tax Authoriti[]()es](https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/themaoverstijgend/programmas_en_formulieren/verzoek-loonheffingen-30-regeling-2024).

What do you do if the employee takes leave?

Different rules apply for almost every type of leave regarding whether or not the salary continues to be paid. More information about forms of leave can be found in "[What does the Work and Care Act entail?](https://maqqie.nl/kennisbank/arbeidsrecht-en-wetgeving/wet-arbeid-en-zorg)" If the employee's salary falls below the minimum taxable income for the 30% ruling due to taking leave, they are no longer eligible for the ruling. However, there is an exception if the employee uses one of these forms of leave: Maternity leave Paternity leave Adoption leave Foster care leave Parental leave According to the law, you do not need to consider the lower salary during this leave. The employee can thus continue to use the 30% ruling.

Does the 30% ruling apply if an employee works for 2 employers?

Yes, the ruling can also be applied by 2 employers. The condition is that the employee earns the minimum prescribed taxable salary at both employers.

Should you apply the 30% ruling to the transition compensation or the severance payment?

It is not applied to the transition compensation or the severance payment. It only applies to the salary that the employee earns at that moment. The transition compensation or the severance payment is also calculated over the salary that the employee previously earned.

Working with knowledge migrants without all the regulatory work?

Hiring knowledge migrants in the Netherlands comes with quite a bit of paperwork. Maqqie helps you with this and ensures that the process is simple and efficient. As a recognized IND sponsor, we can use the accelerated admission procedure.

Would you like Maqqie to help you with the application of knowledge migrants?

Find out more