Relocation tax guideMoving to Netherlands: Taxes for Expats 2026
The Netherlands taxes residents on worldwide income, with box 1 employment income reaching 49.5%. Qualifying inbound employees with scarce expertise can use the 30% ruling to receive part of their salary free of tax for up to five years - a benefit now capped and, by law, reducing to 27% from 2027. Dutch tax residency turns on where your life is centred, not a fixed day count.
The Netherlands has long used the 30% ruling to attract skilled workers from abroad, but the rules have been changed repeatedly in recent budgets, including a cap and a scheduled reduction. This guide explains how the ruling works today, how Dutch residents are taxed across the three 'boxes', and how residency is decided, with the headline rates drawn from the country's full breakdown.
Netherlands: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 25.8%Top rate; a 19% rate applies to the first EUR 200,000 of taxable profit | PwC Worldwide Tax Summariesas of 2026-05-29 |
| Top personal income tax | 49.5%Top box 1 (employment/home) income tax rate | PwC Worldwide Tax Summariesas of 2026-05-29 |
| VAT / GST (standard) | 21%Standard VAT rate | PwC Worldwide Tax Summariesas of 2026-05-29 |
| Capital gains | Taxed (box 2/3)No single flat CGT rate, but gains are taxed: corporate gains at the 25.8% CIT rate (participation exemption for qualifying holdings); individuals under box 2 (substantial interest) or box 3 (deemed return on assets) | PwC Worldwide Tax Summariesas of 2026-05-29 |
| Inheritance / wealth tax | Up to 40%Inheritance/gift tax headline rate; varies by relationship and amount | PwC Worldwide Tax Summariesas of 2026-05-29 |
The 30% ruling (expat facility) regime
Open to qualifying inbound employees, but capped since 2024 and legislated to reduce to a flat 27% from 2027, with a higher salary threshold.
The 30% ruling lets employers pay a portion of a qualifying employee's salary as a tax-free reimbursement of the extra costs of working abroad, instead of taxing it. It is meant for workers recruited from abroad with specific expertise that is scarce in the Dutch labour market, and it runs for a limited period. The tax-free percentage and the salary cap have both been tightened by recent tax plans.
- Up to 30% of eligible salary can be paid free of tax (reducing to 27% from 2027 under enacted plans).
- Capped at the public-sector 'WNT' salary norm, so the benefit no longer scales without limit.
- Available for up to five years (60 months) for qualifying employees.
- A minimum taxable-salary threshold applies and is set to rise - confirm the current figures before relying on the ruling.
Source: PwC Worldwide Tax Summaries - Netherlands (as of 2026-06-23).
| Item | With the 30% ruling | Without the ruling |
|---|---|---|
| Tax-free portion of eligible salary | Up to 30% (27% from 2027), capped at the WNT norm | None - full salary is taxable |
| Box 1 rate on the taxable remainder | Progressive up to 49.5% | Progressive up to 49.5% |
| Duration | Up to 5 years | No limit |
Source: PwC Worldwide Tax Summaries - Netherlands (as of 2026-06-23).
When you become a tax resident
Dutch tax residency is decided on facts and circumstances - where your permanent home, family, and economic ties are - rather than a fixed number of days. If the centre of your life is in the Netherlands, you are generally resident and taxed on worldwide income across the three boxes; if not, only Dutch-source income is taxed.
Source: PwC Worldwide Tax Summaries - Netherlands (Residence) (as of 2026-06-23).
The three boxes
Dutch personal tax is split into three 'boxes'. Box 1 covers employment and home-ownership income and is taxed at progressive rates up to 49.5%. Box 2 covers income from a substantial shareholding (5% or more in a company). Box 3 covers a deemed return on savings and investments rather than the actual gain - a method that has itself been under legal challenge and reform.
Because the Netherlands taxes a deemed return on assets rather than realised capital gains for most individuals, the comparison with countries that levy a conventional capital gains tax is not like-for-like - see the country breakdown for how each figure is sourced.
Why the ruling keeps changing
Recent Dutch budgets have repeatedly adjusted the 30% ruling - first capping it at the WNT salary norm, then proposing a step-down, then replacing that with a move to a flat 27% from 2027 and a higher entry threshold. Anyone planning around the ruling should confirm the parameters that apply to their start date, because transitional rules can change the outcome.
Before you move: what to weigh
- The 30% ruling's percentage, cap, and salary threshold have all changed recently - confirm the figures for your specific start date.
- Box 3 taxes a deemed return on assets, so wealthy movers can owe Dutch tax even without selling anything; the rules here are being reformed.
- Residency is fact-based, so keeping a home or family abroad can affect whether the Netherlands treats you as resident.
- US citizens remain taxable by the US on worldwide income; the Netherlands-US treaty and credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Netherlands.
How does the 30% ruling work in the Netherlands?
An employer can pay a qualifying inbound employee part of their salary as a tax-free reimbursement instead of taxing it - up to 30%, reducing to 27% from 2027 and capped at the WNT salary norm. It is meant for workers with scarce expertise recruited from abroad and runs for up to five years.
Is the 30% ruling being abolished?
Not abolished, but tightened. It was capped at the WNT salary norm from 2024, and enacted plans reduce the tax-free percentage to a flat 27% from 2027 alongside a higher salary threshold. Because the rules keep changing, confirm the parameters that apply to your start date.
When are you a tax resident of the Netherlands?
Dutch residency is based on facts and circumstances - where your permanent home, family, and economic ties are - not a day count. If the centre of your life is in the Netherlands you are generally resident and taxed on worldwide income; otherwise only Dutch-source income is taxed.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Netherlands as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.