Under the so-called “30% Ruling”, eligible highly skilled foreign workers are exempt from Dutch income taxes for up to 30% of their salary for five years of work. Draft legislation that is expected to be submitted to parliament in September would cap this tax exemption at 30% of the regulated maximum public sector remuneration (“Balkenende norm”, currently EUR 216,000), even if a foreign national’s salary is higher. So, for example, if a foreign worker is paid EUR 250,000 annually, only EUR 64,800 of their salary would be tax-exempt (30% of the current maximum public sector remuneration) rather than EUR 75,000 (30% of their annual salary). The legislation is expected to be approved without significant changes before the end of this year. Once passed, the cap would apply to new applicants starting January 1, 2024, or starting January 1, 2026 for those currently using the 30% ruling. Highly skilled foreign workers currently using the 30% ruling are likely to see an increase in their Dutch tax liability due to the cap.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
Explore more at Fragomen
Awards
Global Mobility Lawyer recognises Senior Immigration Manager Wout van Doren and Manager Tanya Loughran as Tomorrow's Leaders.
Media mentions
Partner Shayan Sultan discusses how Disneyland Abu Dhabi could impact hiring, Emiratisation and immigration planning in the UAE.
Media mentions
Partner Charlotte Wills and Director Kelly Hardman co-hosted the Space Law Legal Symposium with DLA Piper, highlighting immigration’s role in space sector growth.
Media mentions
Partner Daniel Pierce highlighted the challenges US universities face under new visa restrictions.
Blog post
Senior Immigration Programme Consultant Salem Barakat shares how hiring graduates on immigration permissions is a strategic business move that unlocks talent and drives innovation.
Blog post
Director Wim Cocquyt and Senior Immigration Consultant Marina Ocariz discuss key takeaways from the 2025 ECJ decision on A1 certificate fraud.
Media mentions
Managing Partner for the Middle East and Africa Murtaza Ali Khan discusses the UAE’s AI talent shortage and how immigration policies are helping attract talent to the region.
Blog post
Senior Immigration Manager Géraldine Renaudière discusses France's tightening of the naturalization-by-decree process by enforcing stricter language, legal and financial requirements.
Media mentions
Partner Ángel Bello Cortés highlights Ireland’s respected work permit system and suggests a sector-specific permit to attract more non-EEA construction workers.
Media mentions
Practice Leader Kathleen O’Donnell highlights how proposed UK immigration reforms could impact businesses in Yorkshire.
Media mentions
Partner Charlotte Wills notes that while full-time, long-term remote work might become less common, many professionals continue to work from abroad through more structured, short-term arrangements.
Video
In this video, Immigration Consultant Laura Varon Osorio walks you through everything you need to know about staying in France after graduation. Whether you’re looking to work, start a business or transition to a new immigration status, this guide covers key immigration pathways for international students.
Awards
Global Mobility Lawyer recognises Senior Immigration Manager Wout van Doren and Manager Tanya Loughran as Tomorrow's Leaders.
Media mentions
Partner Shayan Sultan discusses how Disneyland Abu Dhabi could impact hiring, Emiratisation and immigration planning in the UAE.
Media mentions
Partner Charlotte Wills and Director Kelly Hardman co-hosted the Space Law Legal Symposium with DLA Piper, highlighting immigration’s role in space sector growth.
Media mentions
Partner Daniel Pierce highlighted the challenges US universities face under new visa restrictions.
Blog post
Senior Immigration Programme Consultant Salem Barakat shares how hiring graduates on immigration permissions is a strategic business move that unlocks talent and drives innovation.
Blog post
Director Wim Cocquyt and Senior Immigration Consultant Marina Ocariz discuss key takeaways from the 2025 ECJ decision on A1 certificate fraud.
Media mentions
Managing Partner for the Middle East and Africa Murtaza Ali Khan discusses the UAE’s AI talent shortage and how immigration policies are helping attract talent to the region.
Blog post
Senior Immigration Manager Géraldine Renaudière discusses France's tightening of the naturalization-by-decree process by enforcing stricter language, legal and financial requirements.
Media mentions
Partner Ángel Bello Cortés highlights Ireland’s respected work permit system and suggests a sector-specific permit to attract more non-EEA construction workers.
Media mentions
Practice Leader Kathleen O’Donnell highlights how proposed UK immigration reforms could impact businesses in Yorkshire.
Media mentions
Partner Charlotte Wills notes that while full-time, long-term remote work might become less common, many professionals continue to work from abroad through more structured, short-term arrangements.
Video
In this video, Immigration Consultant Laura Varon Osorio walks you through everything you need to know about staying in France after graduation. Whether you’re looking to work, start a business or transition to a new immigration status, this guide covers key immigration pathways for international students.