The 30% ruling is a tax advantage for highly skilled migrants working in the Netherlands, allowing them to receive 30% of their salary tax-free. However, eligibility can be complex, especially for those with previous ties to the Netherlands. This Q&A addresses a common scenario: a former student who completed their master’s degree in the Netherlands, worked abroad, and is now returning for work. The case highlights key considerations including the distance requirement, salary thresholds, and the impact of internships on eligibility.
Question:
I’m currently in the Netherlands on a search year visa after completing my master’s degree here a few years ago. I recently moved back and have been doing an internship at a Dutch company while working remotely for a company in my home country. The Dutch company wants to offer me a highly skilled migrant position. Would I be eligible for the 30% ruling?
Answer:
Based on this situation, eligibility for the 30% ruling is not likely but not entirely impossible. Here’s a breakdown:
Criteria That Work in Your Favor:
- Highly Skilled Migrant Status: Having a company willing to sponsor a highly skilled migrant visa is a key requirement.
- Recruitment from Abroad: Being recruited from another country strengthens the case.
- Salary Threshold: If the offered salary meets the minimum requirement (varies based on age and experience).
Potential Challenges:
- 150km Distance Requirement:
- You must have lived at least 150km away from the Dutch border for 18 out of 24 months before starting employment
- Previous study period in the Netherlands could affect this requirement
- Tax Residency Issues:
- Remote work for a foreign company could impact tax residency status
- Contributing to foreign social security system may complicate the situation
Additional Important Points:
About Internships:
- An internship could potentially be considered your first job for 30% ruling purposes
- However, this depends on various factors including:
- Nature of the internship
- Employment status
- Tax authority’s view
- A formal employment contract is typically preferred
Salary Requirements:
- For 2024, the minimum salary threshold for someone under 30 with a master’s degree is €35,048
- This is calculated annually, not prorated for partial years
- Your salary should meet the full annual threshold on a projected basis
- Low internship income periods cannot be retroactively compensated to meet the threshold
While there are some positive factors, the previous study period in the Netherlands and the complex work situation (remote work + internship) create significant challenges for 30% ruling eligibility. Professional tax advice is recommended for a detailed assessment of your specific situation.
