If you’re a dentist who wants to start a new career in Holland, you might have heard about the 30% ruling. The Netherlands has become an increasingly popular destination for expatriates seeking professional and personal opportunities. To further encourage the influx of skilled foreign talent, the Dutch government introduced the 30% ruling. Designed to attract and retain highly skilled workers, this tax benefit has played a pivotal role in making the Netherlands an appealing choice for expats. In this article, we will explore the 30% ruling, its eligibility criteria, impact, and benefits.
What is the 30% Ruling?
The 30% ruling, officially known as the “30% facility,” is a tax advantage offered to highly skilled migrants who relocate to the Netherlands for work purposes. Under this scheme, eligible expatriates are allowed to receive 30% of their salary as a tax-free reimbursement for the additional expenses incurred due to their international status. The ruling can be claimed for a maximum period of five years.
To qualify for the 30% ruling, individuals must meet specific requirements. These include:
Residency: The applicant must be an employee who is recruited from abroad or assigned to work in the Netherlands by an employer.
Expertise: The individual must possess specialized skills or knowledge that is scarce or unavailable in the Dutch labor market. In the Netherlands, we experience a shortage of dentists and therefore dentistry is seen as a specialized skill.
Taxable Income Threshold: The minimum taxable salary required to be eligible for the ruling is adjusted annually. As of 2023, the taxable salary must exceed €41,954 per year. As a foreign dentist working in the Netherlands, you meet these salary requirements. In this article you can read more about the expected salary as a dentist in the Netherlands.
Application Timeframe: The application for the 30% ruling must be submitted within four months of starting employment in the Netherlands. We take care of this process for you, and we make sure we do this on time.
Impact on Expatriates in the Netherlands
The 30% ruling has had a significant impact on both expatriates and the Netherlands as a whole:
Attraction of Skilled Talent: The ruling has contributed to the country’s ability to attract and retain highly skilled professionals from around the world. By offering a competitive taks advantage, the Netherlands has positioned itself as an appealing destination for international talent, particularly in fields where expertise is in high demand.
Economic Contribution: Expatriates covered by the ruling contribute to the Dutch economy through their skills, expertise, and spending power. They enhance innovation, knowledge exchange, and entrepreneurship, leading to economic growth and job creation.
Increased Competitiveness: The 30% ruling has enhanced the competitiveness of Dutch businesses by ensuring access to a global talent pool. This has a positive impact on the country’s productivity, innovation capacity, and overall competitiveness in the international marketplace.
How do you benefit from the 30% ruling?
The 30% ruling is a tax advantage for highly skilled migrants such as yourself. It means that you don’t pay taxes over a maximum of 30% of your salary. However, it can also be lower than 30%. This depends on factors such as age, and salary.
The calculation of the 30% ruling can be rather difficult, but luckily, you don’t need to do this yourself. We take care of this for you! The most important thing to know is that your net salary will be higher due to this tax benefit, and that you can enjoy this benefit for a period of 5 years to settle in in the Netherlands.