While orienting for your migration to the Netherlands, you’ve probably read about the 30% ruling that applies here. This Dutch tax reduction law -that only applies to migrant workers- makes it possible for employers to pay out a tax-free cost allowance to their employees. By including this amount (roughly 30%) in the employee’s salary, the employee’s net salary is increased while costs remain the same for the employer. This is the very essence of the Netherlands’ 30 percent tax ruling.

But before you take-off to cloud nine, it’s good to know that there are a few conditions that apply for the 30% facility.

• There must be an employment contract
• You are not from the Netherlands
• You have lived outside the Netherlands for at least 16 months in the last 2 years, more than 150 km from the Dutch border
• You have specific expertise
• You must receive an annual tax salary that at least corresponds to the established salary standard.
• Upon commencement and termination within a calendar year, the 30% facility is calculated pro-rata.

• Extra costs for living in the Netherlands.
• Costs for orientation trips to the Netherlands for houses or schools.
• Application and amendment costs for official documents, such as residence permits, visa and driving licenses.
• Costs for medical examinations and vaccinations to reside in the Netherlands.
• (Double) housing costs.

• Storage costs in the native country.
• Traveling costs to the native country, for family visits.
• Extra costs to have an accountant to file income taxes and tax returns.
• Training costs to learn Dutch, including those for your family members.
• Non-business-related telephone costs to the native country.