30% Ruling (Netherlands)
Definition
A Dutch tax benefit for highly skilled foreign workers that allows employers to pay 30% of the employee's salary as a tax-free allowance for up to 5 years. This is meant to compensate for the extra costs of living abroad. To qualify, you must be recruited from outside the Netherlands (or within 150km of the Dutch border), have specific expertise not readily available in the Dutch labor market, and meet minimum salary requirements (€46,107 in 2025, or €35,048 for those under 30 with a master's degree).
Example
A software engineer earning €80,000 gross salary with the 30% ruling would only pay income tax on €56,000 (70%). The other €24,000 is received tax-free, potentially saving €8,000-12,000 annually.