What is the 30% facility and how do I apply for it?

As an employer, you can tax free reimburse the actual ET-costs, provided that your employee can underpin these costs with invoices. Examples of ET-costs are orientation trips, fees for official documentation, home leave costs, medical examinations, double housing costs, and similar qualifying expenses. 

Note, as from 1 January 2026 onwards, employers will no longer be able to reimburse two specific types of ET‑costs tax‑free: the cost‑of‑living expenses (COLA) and private (phone) communication costs with the employee’s home country. Any reimbursement of these two specific ET-costs is considered taxable salary for the employee. All other categories of ET-costs remain eligible for tax‑free reimbursement.

Tax-free allowence with the 30% ruling

Instead of reimbursing actual ET-costs, you can, if certain conditions are met, use of the so-called 30%-ruling. The big advantage of the 30%-ruling is that it allows employers to provide a tax‑free allowance of up to 30% of the employee’s salary without needing to substantiate or prove any actual ET-costs are made. This makes life easier as you can simply apply the 30%-ruling in the payroll.

Conditions for the 30% ruling

You may only apply the 30%-rule if the following cumulative conditions are met:

1. Your employee is recruited (directly) from abroad and works for you as an employee.
2. In the 24 months before the first working day in the Netherlands, your employee lived outside the Netherlands for more than sixteen months, and more than one hundred and fifty kilometers from the Dutch border.
3. The employee’s taxable salary exceeds the minimum salary of € 48,013 (2026, excluding the tax-free allowance). For employees below age thirty with a master's degree and scientific researchers, more lenient criteria apply.
4. You have a valid decision from the Tax Administration (Belastingdienst) for the application of the 30% ruling.
5. The 30% rule can be applied up to the maximum salary of € 262,000 (2026) resulting in a maximum annual tax free allowance of € 78,600 in 2026.

Do note that an approved 30%-ruling is linked to a specific employer. If you hire an employee who already holds the 30%-ruling, a new application must be submitted to the Dutch Tax Administration to ensure that the ruling can be applied by your company. Finally, an application must be filed within four months after arrival to ensure that the 30% ruling can be applied from the first working day. 

Changes to the 30%-ruling effective 1 January 2027

The Dutch government announced significant changes to the 30% ruling that will take effect on 1 January 2027. The maximum tax-free allowance will be reduced from 30% to 27%, and a higher minimum salary threshold will apply for certain groups of employees. Transitional rules do protect employees who already applied the 30% ruling before 1 January 2024. For employees who first became eligible for the ruling in 2024, the allowance will decrease to 27% as of 1 January 2027, but the current minimum salary requirements will remain in place (€ 48,013, 2026). Employees who became eligible in 2025 or 2026 will face the reduced 27% allowance and a newly introduced higher salary threshold. These changes mean that employers and payroll teams should plan for an additional review in 2026 to ensure correct application of the rules from 1 January 2027 onward.

More information?

At aaff we like to be of significance. Would you like to receive more information about the 30% ruling or do you require assistance in assessing the impact of the upcoming changes on your current 30% population? Please contact our global mobility specialist.