If you moved to the Netherlands for work, there’s a good chance the 30% ruling is one of the reasons your payslip looks as good as it does. From 1 January 2027 that changes: for most expats the 30% ruling becomes a 27% ruling. Here’s what that means.
Short answer: from 2027 most expats can get a maximum of 27% of their salary tax-free instead of 30%, and the minimum salary to qualify goes up. If your ruling started on or before 31 December 2023, you keep 30% for your full 5 years.
What is the 30% ruling?
The 30% ruling (officially the expat scheme) lets your employer pay part of your salary tax-free, as a fixed allowance for the extra costs of moving here from abroad. It lasts a maximum of 5 years. It’s one of the main reasons the Netherlands is attractive to skilled workers from outside the country.
What changes in 2027?
- 30% becomes 27%. The maximum tax-free allowance drops to 27% for the rest of your ruling period.
- Higher salary thresholds. The minimum salary you need to qualify goes up in 2027.
- The earlier plan is gone. A 30-20-10 phase-out was planned before, but it was replaced by a flat 27%.
Does it affect you? It depends on when your ruling started
According to Forvis Mazars, there are three groups from 2027:
- Ruling started on or before 31 December 2023: you keep 30% for your whole 5-year period, with the current salary rules
- Ruling started in 2024: you drop to 27% from 2027, but the current (lower) salary thresholds keep applying
- Ruling started from 1 January 2025: you drop to 27% from 2027, and the new higher salary thresholds apply
The salary thresholds
To qualify, you need to earn more than a minimum taxable salary (the amount after the tax-free allowance). In 2026 that’s:
- €48,013 per year in general
- €36,497 if you’re under 30 and have a master’s degree
From 2027 the general threshold goes up to around €52,500 after indexation. The ruling also has a maximum: in 2026 it only applies to salary up to €262,000.
What does it mean in money?
A simple example. Say you earn €90,000 a year:
- With 30%, up to €27,000 can be paid tax-free
- With 27%, that’s up to €24,300
That’s €2,700 more of your salary being taxed. At the 2027 second bracket rate of about 38%, that works out to roughly €1,000 more tax a year. Not the end of the world, but worth knowing when you budget. Your own numbers depend on your salary, your contract and how your employer applies the ruling.
Who qualifies for the ruling?
- You’re recruited from abroad by a Dutch employer
- You lived more than 150 km from the Dutch border for more than two thirds of the 24 months before you started. Coming from South Africa, that’s easy
- You earn more than the salary threshold
- You and your employer apply together, within four months of your start date
Moving here from South Africa? The ruling is often part of the highly skilled migrant route.
A bonus perk: your driving licence
With the expat ruling you can exchange a foreign driving licence from any country for a Dutch one, without taking the Dutch exams. That’s a big deal if you have a South African driving licence, which can’t be exchanged otherwise.
What should you do?
- Check when your ruling started. That decides which group you’re in
- Ask HR or payroll how they’ll apply the change from January 2027
- Check your first payslip of 2027
- Starting a new job soon? Make sure the ruling is in your contract, and apply within four months
FAQ
Is the 30% ruling being abolished?
No. It’s being reduced to 27% from 1 January 2027 for most people, not abolished.
I got the 30% ruling in 2023. Does anything change?
No. If your ruling started on or before 31 December 2023, you keep 30% for your full 5 years.
How long does the ruling last?
A maximum of 5 years, minus any time you previously lived or worked in the Netherlands.
I’m not a tax advisor, and the details depend on your personal situation. Sources: Business.gov.nl, Forvis Mazars, PwC. Last checked: September 2026.
More changes coming: read what Prinsjesdag 2026 means for expats in 2027.
