Changes in 30% ruling in 2027

Your 30% ruling is changing in 2027, but your salary is not the only thing that is affected. From January, the tax-free allowance drops to 27% for employees whose ruling started in 2024 or later. Here is what you need to know before the new year. 

The year your ruling started makes a difference  

Not everyone receiving the 30% ruling will be affected in the same way. According to the Dutch government, the rules depend on when your 30% ruling first took effect: 

• Ruling started by 31 December 2023: your 30% tax-free allowance stays the same under the transitional rules. 
• Ruling started in 2024: the maximum allowance falls to 27%, but the existing salary rules continue to apply. 
• Ruling started in 2025 or later: the allowance falls to 27%, and a higher minimum salary requirement will also apply. 

What does this mean in practice? 

For someone earning €80,000 annually and receiving the full allowance, the tax-free portion could decrease from €24,000 to €21,600. That is €2,400 more taxable income per year. However, the actual reduction in take-home pay depends on the overall package salary of each employee.  

Your mortgage budget deserves another look in 2027 

When assessing your mortgage options, it is important to look at two scenarios: what you can afford while your 30% ruling applies, and what you can afford after it changes or expires. 

Why? Because your 30% ruling generally lasts a maximum of 5 years, while a mortgage can last 30 years. Not all banks treat tax-free allowance equally. Some lenders mainly look at your gross salary, while others may take the 30% ruling and your taxable income into account differently.  

As Tim van Hulst, Team Lead Mortgage at A&H Finance, an associated company of TaxSavers, points out: "We look at both situations: what you can afford with the 30% ruling and what happens when it ends. Taking the 30%/27% ruling into account can, in some cases, increase the maximum mortgage amount. This could make the difference between being able to buy a property or not. By comparing different lenders, we can help you find a mortgage that suits your situation now and remains affordable in the future." 

Another thing worth knowing: your mortgage interest may be tax-deductible, and you could receive a monthly tax refund instead of waiting for your annual tax return. Having an advisor who understands both your mortgage and taxes can help you make the most of these benefits. 

Your foreign savings could be affected too 

Another important change: some internationals with the 30% ruling have been able to exclude certain foreign savings and investments from Dutch Box 3 wealth taxation, as well as certain company shares from Box 2. 

This tax benefit ends after 2026. From 2027, tax residents in the Netherlands may need to declare these assets, even if their 30% ruling continues. “The ruling itself is only the start. It touches your Box 3 wealth tax, your borrowing capacity and your net pay,” explains Anne Bon, Senior Tax Advisor & Box 3 Specialist at TaxSavers.  

Financial changes are easier to navigate when someone sees the whole picture 

Changes to your taxes can affect your monthly budget, housing plans and longer-term financial decisions, including your insurance and your retirement planning. 

We believe these financial decisions should be considered together. That's why TaxSavers now offers more than just tax services. 

Alongside our expertise in Dutch tax returns, the 30% ruling and international taxation, we now help internationals with four financial pillars: taxes, mortgages, insurance and pensions. All connected through one point of contact, so you can see the bigger picture of your financial life in the Netherlands.