• [En]
  • [Fr]
  • [Es]
  • [It]
  • [Tr]
  • [Ru]
  • [Pl]
  • [De]
  • [Cn]
  • [Br]
  • [Ar]
  • [Nl]
  • [Ko]
  • [Ro]
  • [Cz]
  • [Bg]
  • [Dn]
  • [Fn]
  • [Gr]
  • [Hu]
  • [Nr]
  • [Sw]
  • [Is]
  • [Jp]
  • [Th]

  (+31) 765-870 401


(+31) 765-870 401
Company Formation Netherlands



Free Allowance for Extraterritorial Costs - the 30% Ruling

Updated on Wednesday 06th December 2017

Rate this article
5 5 1
based on 1 reviews

Free-allowance-for-extraterritorial-costsThe Netherlands offers tax advantages to foreign investors coming to open companies here, but also to foreign citizens working here. This is also one of the main reasons why the Netherlands boasts one of most skilled workforces in Europe. In order to attract professionals, the government has enabled a scheme through which foreign employees of Dutch companies may benefit from a free allowance for extraterritorial costs, simply known as the 30% rule or Dutch 30 ruling.

Our company formation agents in the Netherlands can offer information on all the benefits foreign employees can take advantage of, including Dutch 30 ruling

What does the Dutch 30 ruling mean in the Netherlands?

The Dutch 30% tax allowance means an employee will only receive 70% of the salary agreed upon with the employer, while the remaining 30% will be exempt from the income and the wage taxes. This will also be for the benefit of the company in the Netherlands which will be exempt from taxation when reimbursing the extraterritorial costs of the worker, hence the name of the ruling.

Qualification requirements for the Dutch 30% ruling

The most important thing to know is that the Dutch free allowance for extraterritorial costs (Dutch 30 ruling) does not apply to all foreign employees. This measure has been introduced to enhance the quality of the workforce, but also to encourage those seeking to open a company in the Netherlands to hire specialists. In order to benefit from the Dutch 30 ruling, a foreign employee must meet the following conditions simultaneously:

  • -          the work relation must be based on an employment contract;
  • -          the foreign employee must be recruited directly by the employer;
  • -          the 30% allowance must be introduced in the employment agreement;
  • -          the qualifications of the employee must be exceptional or rare in the Netherlands;
  • -          the gross salary must be above the annual minimum wage.

The 30% ruling also applies to foreign employees transferred from a parent company abroad to a Dutch subsidiary or branch office, as for the salary of the employee, the minimum amount is adjusted on an annual basis. Under the new legislation which was enabled in 2012, an employee may change jobs and still benefit from the 30% ruling in the Netherlands.

For complete information on the advantages of both employer and employee under the Dutch 30 ruling, please contact our company registration consultants in the Netherlands.




There are no comments

Comments & Requests

Please note that client queries should NOT be posted here but sent through our Contact page.

Why work with us?

Dennis Vermeulen, the manager of INCO Business Group and a specialist in Dutch company formation, will help you incorporate a company in the Netherlands as soon as possible.


Call us now at +31-765870401 to set up an appointment with our specialists in company formation from Breda, Amsterdam or Rotterdam.

24 hours response time.png

1000 registered companies.png

Dutch trust experts.png

free initial evaluation.png

Contact Us Now

Online Incorporation


Tax Calculator




I have had a very good collaboration with the specialists in company registration from CompanyFormationNetherlands.com. They answered to my requests rapidly and they managed to open a company in just a few days after I had sent all the required documents for my clients.

Cristian Darie, Partner of
Darie, Manea & Associates
Read more testimonials


Download our brochure if you need information about setting up a company in the Netherlands.

How to open a company in the Netherlands.pdf

We recommend ClientPedia

This website is marketed by ClientPedia

banner Clientpedia.jpg