What Is This 30% Tax Rule?
In the Netherlands, if you meet certain conditions, you pay income tax on 70% of your salary for 5 years. In other words, the 30% part is not touched at all during this period.
What Conditions Need to Meet?
– Relocating to the Netherlands for work and working in a paid job.
– Signing your employment contract while residing outside the Netherlands. Your address must be included in the contract. It’s a very critical issue. Because we have heard that those who want to find a job after coming to the Netherlands and take advantage of this advantage have been rejected. However, we also heard about people who found a job after their arrival and benefited from the 30% tax advantage. However, according to official sources, the first thing we said is valid. Therefore, for example, if you are coming in pairs and only one of you has found a job, our recommendation is that the person who has not yet found a job to continue their job search in your country, if possible. If you come to the Netherlands and register with the municipality immediately, you run the risk of not being able to benefit from the advantage.
– By the way, you may not be living in your country. In that case, you must have lived at least 150 kilometers from the Dutch border for at least 16 months of the last 24 months before starting work. It is looked at by drawing a straight line on the map. If you live in Belgium or Germany, you still have the chance to benefit.
– Your annual salary must be above a certain amount. Here, the limits are determined by age. The gross salary for persons under 30 is €40572 for 2020, €55344 for persons over 30. Some sources mention the taxable part of the salary. But when negotiating salary, it is enough to keep these criteria in mind. You must be able to receive at least this salary from your employer so that you can benefit from the tax advantage. In fact, being over 30 is much more advantageous in this sense (There is a net difference of €1200 per month)
To explain the salary effect in numbers. Let’s say your monthly gross salary is 4000€. Your net income without tax advantage is 2856€. When you have a 30% tax advantage, you get a money like 3250€. In other words, it provides an advantage of about 400 €.
If you want to calculate yourself, you can calculate gross-net salary for any situation from thetax.nl site.
The period of validity
In fact, the target audience here was those who temporarily settled in the Netherlands. But considering that the visitors stayed longer and the advantage provided within 5 years was more than enough, the duration of this advantage was reduced from 8 to 5 years as of January 1, 2019. Tears are flowing from our eyes to the keyboard right now because this also affects what came before. For example, we have been using it for 3 years and we will not be able to benefit after 2 years.
Generally, the application is made after getting a job. This means that you cannot take advantage of this advantage as soon as you start working. Some companies pay the difference themselves until the application process is approved. However, many companies do not have this practice.
After you start the job, you fill out the application form with the help of your company. In general, companies are quite dominant in this process. Additional documents may be requested from you depending on the situation. After about 3-4 months, you will receive the result of your application. If it is approved, the part from the first day you start the job to the date of approval is calculated and a lump sum payment is made to you.
Those who benefit from the 30% tax advantage can also convert their driver’s license to a Dutch driver’s license within 6 months after settling in the Netherlands by only paying the application fee. This is a huge advantage because getting a driver’s license in the Netherlands takes a long time and costs a lot.
In fact, after your approval, the picture remains for 2 months to be able to do this. We heard that there was no problem in the applicants after 6 months. But if you want to secure your job, we say do this immediately after 30% approval.
The Netherlands is a tax country. There is a tax on everything. If a Dutch house is left by his grandfather, he has to pay a very serious tax. If you have more than a certain amount of savings in the bank or you have rental income from your country. These are normally taxed. As long as you benefit from the 30% tax advantage, you become exempt from these taxes.