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The 30% Facility
The 30% Facility

When an employee is hired from abroad to work in the Netherlands, they may be eligible to receive a tax exemption known as the 30% facility (or 30% ruling).

This tax-free allowance is considered a compensation for extra costs that an employee may incur for working outside their home country, the so-called extraterritorial costs.

If a number of conditions is met, your employer can apply for your 30% facility at the Dutch Tax and Customs Administration. A full explanation of the 30% facility with all conditions and exceptions can be found on the website of the Dutch Tax and Customes Administration.

If this facility is granted, 30% of your gross salary will be paid to you without tax deduction. You will only pay tax on 70% of your gross salary.

A number of conditions will have to be met (different for those with an MSc or PhD):

  • You were recruited outside The Netherlands (more than 150 kilometres in a straight line from the Dutch border) or you already enjoy the 30% facility.
  • Your all-in gross salary is over € 53.919 (2019).

After the application for the 30% facility has been submitted, it takes 9 to 12 weeks to receive the decision of the Dutch Tax and Customs Administration. Upon receiving a positive decision the 30% facility will become effective retroactively.

Posted on donderdag 16 mei 2019
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