Tax Plan 2025: what are the consequences for the 30% ruling?

We are happy to share an overview of the changes regarding the 30% ruling as mentioned in the Tax Plan 2025. 

Previous changes

In the last years we had the following changes:

1. The introduction of the “salary cap” has been adopted per 1 January 2023, transitional rules apply. See more details in our previous article.
2. The introduction of the 30/20/10% rule has been adopted in the tax rules per 1 January 2024, transitional rules apply. With this rule the tax free percentage is reduced every 20 months with 10%. So eventually, employees will a receive a maximum of up to 10% tax-free allowance instead of 30%.
3. The cancellation of the partial non-residency treatment has been adopted in the tax rules per 1 January 2024, transitional rules apply. Employees who receive the 30% ruling have the possibility to choose for the partial non-residency treatment. These employees have a very limited (or no) obligation to report and pay income tax over their private investment income (Box 2 and Box 3) in the Netherlands during the period the 30% ruling is applicable (in principle five years).

2025 Tax Plan amendments regarding the 30% ruling

Based on the adapted Tax Plan 2025 we now know that the announced 30/20/10% rule (2. mentioned above) will be cancelled. The other two changes mentioned above (1. and 3.) will remain applicable. 

In addition, the percentage of the tax-free allowance will be reduced to 27% per 1 January 2027 and the salary level to qualify for the 30% ruling will be increased. Transitional rules will be applicable for employees who had the 30% ruling before 2024, or at least started their employment before January 1st 2025. These employees will keep a tax-free allowance of up to 30% during the total period of the 30% ruling. In addition, the salary level remains the same, although it will be subject to annual indexation. 

This means that for the employees who received the 30% ruling in 2024 or later, limited transitional rules will apply. These employees will receive a maximum of 27% tax-free allowance as of 2027. In addition, the announced higher salary norm will be applicable for employees who will receive the 30% ruling as of 1 January 2025. As such, a part of the group that received the 30% ruling in 2025 or will potentially lose the 30%/27% ruling if they no longer meet the new salary criteria in 2027 or onwards.

Please find below an overview of the adapted transitional rules:

*All figures are subject to indication. The figures mentioned relate to 2025.
**All figures are subject to indication. The figures mentioned relate to 2024.