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Dutch expat ruling reduced to 5 years

The Dutch government has announced to reduce the maximum duration of the 30% ruling from eight to five years. The reduced duration will apply as of 2019 for both new and existing cases (without transitional law).

The maximum period of five years will also apply to the partial non-resident taxpayer status and to the possibility of reimbursing actual extraterritorial expenses tax-free. The other conditions of the 30% ruling do not change.


The 30% ruling is a beneficial Dutch expat tax ruling. Under conditions, it is possible to reimburse 30% of the wage of an employee as a tax free allowance. In order to apply for the 30% ruling, amongst others, the employee needs to be recruited from abroad and have specific knowledge that is hardly available on the Dutch labour market. The 30% allowance is deemed to cover the extra costs of working outside the country of origin, such as travel costs, accommodation costs and the cost of living.

Take away

It is important to review the consequences for your expat population as soon as possible. Some expats may already be affected in roughly half a year's time. For all future applications for the 30% ruling, it is important to indicate that, on the basis of the government's announcement, the maximum term of the 30% ruling will be five years.

Contact us

Maaike Sips

Senior Manager Knowledge Centre Tax, PwC Netherlands

Tel: +31 (0)6 5375 55 65

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