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Published March 17, 2026

The Dutch Expat Scheme: What you should know for 2026 and beyond as an international

If you’re planning to live and work in the Netherlands, you have most likely heard about the Dutch Expat Scheme (formerly known as the 30% ruling). It remains one of the country’s most valuable benefits for international professionals. In simple terms, it allows qualified internationals to receive up to 30% of their salary tax-free for a maximum of five years to compensate for the "extraterritorial" costs of moving and living abroad.

Why the Expat Scheme matters

The Netherlands competes with other European countries—such as those in the Nordics, Portugal, and Spain—which all offer attractive tax incentives to lure global talent. For professionals deciding where to build their careers, these benefits often make a significant difference.

At the same time, Dutch startups and scale-ups continue to face a shortage of highly skilled specialists in technology, engineering, and life sciences. The Expat Scheme helps bridge this gap, making relocation financially feasible and ensuring international talent is rewarded competitively.

In essence, the scheme benefits everyone involved:

  • Employees receive a higher net income and a smoother financial transition.
  • Companies gain access to a broader pool of international talent and reduced employment costs.
  • The Dutch economy remains innovative and globally competitive.

To whom does this scheme apply?

To qualify for the Expat Scheme, several key conditions must be met:

  • You were recruited or transferred from abroad, or you already live in the Netherlands with a valid ruling.
  • You lived more than 150 km from the Dutch border for at least 16 of the 24 months prior to starting work.
  • Your employment contract must explicitly include the scheme, typically as a written addendum.
  • Your taxable salary must meet the annual minimum threshold (before applying the tax-free allowance).

2026 Salary Thresholds

2026 Expected Salary Thresholds

  • Age 30 and older: €48,013 per year (a 2.9% increase from 2025).
  • Under age 30 (with a Master’s degree): €36,497 per year (a 2.9% increase from 2025).
  • Maximum Salary Cap (Balkenende norm): €262,000 per year.

2027 Projected Salary Thresholds

  • Age 30 and older: €50,436 per year (a 5.0% increase from 2026).
  • Under age 30 (with a Master’s degree): €38,388 per year (a 5.2% increase from 2026).

The salary threshold is crucial: your fixed taxable income must always remain above the minimum. If it drops below the threshold—for example, due to reduced working hours—the benefit can be lost permanently. For part-time roles, the threshold is not pro-rated, meaning you must still meet the full annual minimum.

Applying and continuing the Expat Scheme

Your employer must apply for the ruling within four months of your start date for it to take effect from day one. Later applications are possible but will only take effect from the first day of the month following the application.

If you change jobs, you can continue the scheme provided the gap between roles is less than 90 days, you still meet the requirements, and your new employer submits a new application. Additionally, an approved ruling allows you to exchange your foreign driver’s license for a Dutch one without retaking any tests.

Looking ahead: Changes for 2027

From January 1, 2027, the tax-free portion is scheduled to decrease from 30% to 27%. This change is why the ruling is increasingly referred to as the "Expat Scheme." Salary thresholds are also expected to see a more significant increase in 2027 (currently projected at approximately €50,436 for those over 30).

How Rehive People supports you

At Rehive People, we guide international professionals through every step of the Dutch Expat Scheme, from eligibility checks to ongoing compliance. With annual updates, staying informed can be challenging—our expertise ensures you remain compliant and fully maximize the benefits of working in the Netherlands.

judith

Judith Roetgering

Managing Director at Rehive People

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