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Highly skilled migrant visa in the Netherlands

In today’s global market, it’s becoming more and more common to receive CVs from foreigners. If they’re from a country within the European Union, you can hire them without any trouble. But what if they’re from Asia? From North America? It suddenly becomes much more complicated to hire them. Even though they might be the best fit for you and your company, you might pass on them because of the difficulties that come with hiring from abroad.

This scenario is all too common for Dutch businesses trying to remain competitive in a global market. The highly skilled migrant visa (HSM visa) is the answer to these challenges. It connects companies with highly skilled migrants around the world by breaking down the barriers for employers and providing new opportunities for employees.

In this blog, we’ll take you down the path of the HSM visa. By the end, we’re confident you’ll have another look at the international CVs you would normally cast aside.

A type of residence permit

The HSM visa, often called a knowledge migrant visa, is a residence permit designed to attract highly educated persons from abroad to the Netherlands. It simplifies the process for companies to hire internationals without needing a separate work permit whereas it provides a faster, smoother immigration process and the chance to build a new life for employees.

But what if you’re not looking for a traditional employer-employee job and maybe you’re an entrepreneur with big ideas and a freelancer? While highly skilled migrant visas do not apply for self-employed persons, the Netherlands offers other pathways such as self-employment visas.

Who’s eligible for the highly skilled migrant visa?

Employees are eligible for the HSM visa under certain conditions. This allows employers to hire abroad. The requirements can be split up into two sections: the employer and the employee (or expat). We will look at each side and see what is required.

For employers:

To hire a highly skilled migrant, your company must be a recognised sponsor by the Dutch Immigration and Naturalisation Service (IND). Becoming a recognised sponsor requires meeting several conditions such as proving financial stability and fulfilling income requirements for the employee.

Not a recognised sponsor? Then, check out our blog on what a recognised sponsor can do for your company.

For employees:

To successfully apply for the Highly skilled migrant visa, employees must meet specific monthly gross income and documentation requirements. These requirements are in place to make sure the employees are eligible to work and live in the Netherlands.

Income thresholds:

The highly skilled migrants must meet the minimum gross salary requirements, which differ depending on age, qualifications, and employment category:

  • Under 30 years: €4,171.- (excluding holiday allowance).
  • 30 years or older: €5,688.-(excluding holiday allowance).
  • Recent graduates in their orientation year: €2,989.-(excluding holiday allowance)
  • EU blue card holders: €5,688.-(excluding holiday allowance)

These thresholds are updated annually to reflect economic conditions and the cost of living. This ensures that skilled migrants have sufficient financial resources to support themselves and their families while living here.

Are you interested in knowing more about these salary thresholds in depth? Read the article on the salary thresholds for highly skilled migrants in 2025!

Required documentation:

  • A valid passport: The passport must be valid for the duration of the employment.
  • A signed employment contract: The contract must be signed by an employer recognised by the Dutch Immigration and Naturalisation Service (IND).
  • Health insurance: It is mandatory in the Netherlands to have health insurance, even for temporary residents. The applicants must have an active policy that complies with Dutch healthcare requirements.

Special Cases

While an HSM visa has general income and documentation requirements, certain roles, such as scientific researchers or medical professionals, qualify for exemptions or additional consideration.

Want to know what the requirements are? You can check the IND website for more info!

Why is the highly skilled migrant visa beneficial?

The HSM visa makes moving to the Netherlands easier for employees and employers. It makes the whole process easier by letting businesses hire the talent they need and let professionals start their new lives rather than stressing over paperwork.

  • For skilled migrants: The visa is processed quicker and allows skilled migrants to bring their families along, allowing them to settle in the Netherlands.
  • For employers: With fewer administrative challenges, when a recognised employer submits the documents, they are processed faster, often within two weeks.

We’ve covered the essentials to give you a better overview of the HSM visa, what it is, how it works, and why it’s beneficial. But every situation is unique and there’s always something more to explore. If you’d like to dive deeper into the details, discuss specific scenarios, or get personalized guidance, don’t hesitate to reach out. Schedule a call with us today!

Application procedure

Applying for highly skilled migrant and their entry and residence procedures needs a collaborative effort between employers and employees. Employers handle the application process through the IND, while employees ensure their documents are in order. Here’s how it works:

For employers (companies):

  1. Get recognised: If you aren’t already, apply for IND sponsorship, proving your financial stability and compliance;
  2. Apply: Use the IND website to start the residence permit process;
  3. Gather documents: Prepare necessary documents like salary proof and other paperwork;
  4. Pay fees: Ensure you’ve paid the application fees;
  5. Approval: Once recognised, applications are usually processed within two weeks.

For employees (highly skilled migrants):

  1. Job Offer: Secure a job with an IND-recognized sponsor;
  2. Submit Documents: Provide documents like your passport, health insurance details, and qualifications;
  3. Health checks: Complete any required health checks;
  4. Wait for Visa approval: You can move to the country once your visa is approved.

Rights and conditions

The HSM visa not only lets you work in the Netherlands but also lets you integrate into your professional and personal life. Here’s how:

Work rights and validity period

As soon as your residence permit is approved, you start working without further delay. The validity of your residence permit depends on the duration of your employment contract, making sure both short and long-term opportunities are flexible. Need more time? The permit can easily get renewed as your employment continues.

Family unification

One of the standout benefits of the HSM visa is its support for family life. Family members such as spouses or unmarried partners can join you in the Netherlands under a dependent visa. What’s more? They will also have the right to work, giving them an opportunity for their professional growth. This visa maintains a balanced family life when building a successful career abroad.

Frequently asked questions

Here are some of the most frequently asked questions we see come by the most:

  1. Can I change employers while on this visa? Yes, you can change employers, but there are a few important steps to follow. Your new employer must also be an IND-recognised sponsor. Once you have secured a new job as a highly skilled migrant, your new employer will need to handle your residence document with the IND, including updating your document to show the change in employment.
  2. Does the 30% tax ruling apply to everyone? No, the 30% tax ruling is not applied to all highly skilled migrants. Eligibility for this tax benefit depends on several factors, including your salary level and whether you met the specific criteria set by the Dutch tax authorities. For instance, the ruling generally applies to highly skilled migrants with high salaries, typically above a certain threshold, and depends on how far you’ve relocated for work, with more favorable conditions for those outside the EU.
  3. Are salary thresholds ever waived? These thresholds are generally strict, however there are certain exceptions. For example, if you’re in a field like scientific research, academic staff, or other roles with significant contributions, you may qualify for a lower salary threshold. Additionally, recent graduates with a Dutch diploma or qualifications from an accredited university may be eligible for a highly skilled migrant lower threshold salary criteria.

Tips

  1. Use online tools: As a recognized sponsor, you can use the IND website’s online submission portal for highly skilled migrant procedures.
  2. Plan: Before submitting your application, ensure all the necessary documents are in place. This includes employment contracts and any other required paperwork. Having everything ready will speed up the process and reduce any potential delays.

Resources for your application process

There are many resources online. Some you can trust, others not so much. Remember that the official one is the Dutch government. Here is where you can find their rules:

  1. IND website: The IND website is the primary and most reliable source for detailed information about the application procedure, requirements, and updates for Highly skilled migrants.
  2. Dutch embassy: For those applying for a provisional residence permit (MVV), the Dutch embassy provides information on how to apply for a provisional residence permit, which is often the first step for applicants living outside the Netherlands.

Making the process easier for you!

The HSM visa process can be challenging and complex, but with the right support, it doesn’t have to be overwhelming. From salary thresholds to documentation and IND regulations, every step requires careful attention to detail.

We understand how challenging it can be to keep up with Dutch laws and regulations, but this is our field of expertise. As a recognised sponsor, we are always up to date with the latest changes and can assist you with the highly skilled migrant procedure. We can handle the complexities for you by ensuring compliance with the latest updates and assisting with every step of the application process. We take the burden off your shoulders so you can focus on what truly matters: your core business.

Expat Life in the Netherlands: A Conversation with Karsh Patel

In today’s world, we often find ourselves digging through piles and piles of data and forget to look up and see the person sitting across from us. At Hilfort, we look at the person first and the data second. So, to better understand the service we offer from another perspective, we sat down with one of the expats using our employment of record services. Meet Karsh Patel, an expat from India who has been living in the Netherlands for the past five years.

“I’m Karsh. So, I originally came from India, and I came to the Netherlands for my education.”

Karsh Patel

Karsh from India


In the conversation, we talked about his experience of moving to the Netherlands, working with Hilfort, and adapting to life here.

Moving from India to the Netherlands 

Karsh is originally from India and came to pursue his master’s degree at TU Delft. The university’s unique program is what drew him in. He graduated during COVID times, which was a period with on and off lockdowns in the Netherlands, and soon found a job opportunity here.

“My introduction to Hilfort was through our HR head then, who realized they needed to give me sponsorship for my permit. So they engaged Hilfort at the time, and then that’s how, basically, it got started.”

To employ an expat in the Netherlands, a company must be a recognized sponsor with IND. Since Karsh’s company wasn’t, they reached out to Hilfort for the employment of record services.

Hilfort’s support throughout his journey

When Karsh’s and Hilfort’s journey started, he said that one thing that stood out for him was how the team helped him renew his contract multiple times. 

“I’ve been working for Hilfort for quite some time now, and I have had two renewals of my temporary contracts and one permanent renewal. Whenever I had a question or needed clarification, I always received a timely response. The steps were laid out very clearly, and I knew what exactly needed to be done. It felt very professional and prompt.”

Another thing that stood out for Karsh was the transparency and straightforwardness that Hilfort offered. Expats often find themselves in the dark about what to expect from the immigration process, but with Hilfort’s support, he always knew what to expect.

“I knew exactly what was coming next. The team kept me informed at every step. I never felt confused or left wondering what to do next.”

Adapting to Life in the Netherlands

When it comes to life in the Netherlands, Karsh said he has embraced the challenges and successes that come with living as an expat. From adapting to the new academic environment at TU Delft to adjusting to cultural differences, he has learned to appreciate the Netherlands and Dutch life.

The netherlands on the map with a 
Dutch flag

“What I enjoy most about living here is the small circle of colleagues and friends I have built. They have become my support system in this new chapter of my life.”

Reflecting on Karsh’s experience with Hilfort

Looking back, Karsh felt that Hilfort made his life and work easier. He appreciated the reliability and clarity that Hilfort provided, particularly regarding his work permit and employment status.

But those are all positives. While we’re always happy to hear from a satisfied payroller, we also want to keep improving our services. So I asked if there was anything he could think of for future improvements. He did eventually think of something we could improve on.

“Honestly, I can’t think of much. Maybe a quick 10-minute call during permit renewals could be helpful for people who are less familiar with the process. But for me, everything was smooth. Hilfort gave me peace of mind.”

What’s next for Karsh?

As for his future, he’s excited about the future he’s building here. His career is progressing, and he’s found stability both in his personal and professional life. He appreciates the service and stability that Hilfort has provided, and he continues to feel supported in his professional life.

“It’s like therapy. Well, I think it gave me more … What I wanted was to kind of see a very different place and be able to have a very different type of challenge that kind of forces me to look into myself. And I feel, I felt that I got that, and that has, and I think that has what has changed. I think it gives me an idea that going through tough things in foreign or unfamiliar places will force you to look into yourself, to overcome it, so you know yourself more.”

Wrapping Things Up

Karsh’s story reminds us why we do what we do at Hilfort. To make the life of expats easier by helping them with the legal formalities so they can focus on living and adjusting to their new life here, in the Netherlands.

To Karsh and all the expats and employers we work with, thank you for letting us be part of your journey. We wish Karsh all the best and hope we can continue supporting him and all other employers and expats for a long time to come.

Highly skilled migrant salary 2025: What you need to know

In a world that’s more connected than ever, the Netherlands has been a magnet for international talent. For those trying to build their careers or employers who have been looking to hire global talent, the Highly skilled Migrant Scheme (HSM) has remained one of the most popular way to work or to hire in the Netherlands. However, like everything else, some rules and conditions must be met and one of the most important one is meeting the annual salary thresholds set by the IND (Immigration and Naturalisation Service).

What is the highly skilled migrant scheme?

To have a better overview of these updates, the table below outlines the updated 2025 salary thresholds for highly skilled migrants and blue card holders excluding the 8% holiday allowance:

However, if the application is submitted in 2024, you have an advantage as the salary thresholds of 2024 is still applicable even if the skilled migrant starts working in 2025.

Type highly skilled migrant/ blue card holdersFirst residence permit highly skilled migrant/ blue card holder from 1st January 2025Application extension on residence permit highly skilled migrant / blue card holder for the same employer from 1st January 2025When changing employer from 1st January 2025 (sponsor)
Highly skilled migrants younger than 30 years with a Master’s degree€ 4,171€ 4,171€ 4,171
Highly skilled migrants 30 years or older€ 5,688€ 5,688€ 5,688
Highly skilled Migrants: Recent graduates at a Dutch University€ 2,989€2,989€ 2,989
European blue cardholders€ 5,688€ 5,688€ 5,688

What has changed from 2024 to 2025?

The salary thresholds are adjusted and updated annually to reflect the economic condition of the country. Here’s how the number of salary thresholds has a difference in the year of 2024 and 2025 excluding the 8% holiday allowance and bonuses:

Type highly skilled migrant/ blue card holdersHighly skilled migrant salary 2024 until 31 December 2024 (€)Highly skilled migrant salary 1st January 2025 (€)
Highly skilled migrants younger than 30 years with a Master’s degree€ 3,909€ 4,171
Highly skilled migrants 30 years or older€ 5,331€ 5,688
Highly skilled Migrants: Recent graduates at a Dutch University€ 2,801€ 2,989
European blue cardholders€ 5,331€ 5,688

This salary adjustments emphasize not only show the importance of meeting updates salary thresholds but also to maintain eligibility for residence permits.

What else is changing?

While the salary thresholds are usually adjusted annually to reflect the changes in the economy. One key update worth noticing the transition from the 30% ruling to the 27% ruling. Salary thresholds salary thresholds salary thresholds

What is the 30% ruling?

The 30% ruling is a tax benefit for employees who come to work in the Netherlands from abroad. The 30% ruling will still apply till 31 December 2026 however, from the 1st of January 2027, the percentage will decrease to 27%. Even if this may seem minor, it affects majorly on the expat allowance.

Wanna know more about how this amount reduction might affect you? If yes, then check this blog out about the transition of a 30% ruling to 27%.

Implication for highly skilled migrants

For highly skilled migrants, it is necessary to know what changes and updates have been made and what things should be kept in mind before moving to the Netherlands in 2025. Below are the following things you need to know:

  • If you are a highly skilled migrant, you must meet the salary thresholds of 2025 set by the IND for new applications or residence permit renewals.
  • If you fall below the salary threshold, it can affect your eligibility to work as a highly skilled migrant.
  • Highly skilled migrant younger than 30 with a Master’s degree and recent graduates at a Dutch University have the advantage of a lower salary threshold.

Visa Application for Highly Skilled Migrant

Implications for employers

Before hiring any international in the Netherlands 2025, these are the following things employers should also keep in mind:

  • Salaries must meet updated thresholds, including for extensions and changes in employment.
  • There shouldn’t be any discrepancies in salary payments, if so you will jeopardize the migrant’s residence permit and contract as well as your status as a recognized sponsor with the IND.
  • These updates should be taken into consideration for the hiring plans and salary budget for 2025.

Hilfort’s role

The highly skilled migrant scheme does come with a complicated set of rules but at the same time it makes it easier to connect talent with opportunities in the Netherlands. Therefore, it is necessary to stay informed about these updates regarding salary thresholds and changes made by the IND.

We also understand that sometimes keeping up with the updates and changes can be challenging in the Netherlands and that’s where we come in. Hilfort stays up to date with the latest changes made by the IND. For example salary thresholds and regulations for highly skilled migrants. We ensure to make accurate calculations based on updates and also inform highly skilled migrant and their employer about the following upcoming changes promptly.

What a recognised sponsor can do for your team

In today’s competative job market, finding the right candidate sometimes means looking beyond the borders of the Netherlands and the European Union. But Dutch law makes it so that many companies are unable to hire the perfect candidate when they’re from a country like the United States of America or India. Only companies labeled by the Dutch immigration services as a recognised sponsor are allowed to hire these types of candidates. Being a recognised sponsor with the Dutch Immigration and Naturalisation Service (IND) allows companies to hire skilled foreign nationals while simplifying the visa, work permit, and application procedures.

What is a recognised sponsor and why do you need it?

A recognised sponsor is an organisation that has been officially approved by the IND to employ skilled foreign nationals. The foreign nationals include highly skilled migrants, researchers, and au pairs who want to work in the Netherlands. Recognised sponsors come in two main categories. The first category is a company that wants to hire foreign nationals and has the time, money, experience, and knowledge to do the lengthy procedure of becoming a recognised sponsor and hire their perfect candidate(s). The second category, to which Hilfort belongs, are companies who’re specialized in being a recognised sponsor. We act as a bridge between a job posting and the perfect candidate and make sure that all conditions and requirements are met.

There are entry barriers for a new company that is less than 3 years old. The Dutch ministry (Dutch government) and IND require a company to follow a different, more lengthy procedure to become a recognised sponsor. The Netherlands enterprise agency (RVO) is asked for advice about these organisations regarding their cash flow and their continuity and solvency. So, one of several advantages for older companies is that they can follow the more simple procedure and aren’t subject to the Netherlands enterprise agency (RVO).

Obligations and Responsibilities of a Recognised sponsor

The Immigration and Naturalisation Service (IND) holds recognised sponsors to high standards both to become a recognised sponsor, but also to hold that position and stay on their public register. Some of the most important legal obligations and responsibilities of a recognised sponsor are:

  • Recognised sponsors must notify the IND of changes that have consequences for the residence permit of the registered highly skilled migrant or the recognition as a sponsor.
  • Recognised Sponsors must continuosly retain the details of all their highly skilled migrants on staff.
  • Recognised Sponsors have a responsibility to uphold the standards and set requirements for employees being hired as highly skilled migrants.

Breaking IND Obligations and Non-compliance

It is the perogative of the Immigration and Naturalisation service (IND) to check at any time whether a recognised sponsor complies with the rules. The investigated company needs to hand over the requested documents and prove that they are still in compliance. If for whatever reason the company doesn’t comply with the rules (e.g. by having a highly skilled migrant on the payroll who earns less than minimum wage or not following the minimum holiday allowance act), the Dutch immigration service (IND) is allowed to take one of the following actions:

  • Warning and governmental fine: The first time that a company fails to comply with the rules a warning is generally issued, informing the company about the possibility of losing their recognition and the consequences for the company and the highly skilled migrants in employment with them. With subsequent violations, the IND requires a company to pay a fine. The height of the fine depends on the seriousness of the violation and the number of violations in years prior.
  • Suspension or withdrawal of recognition as a sponsor: If the recognised sponsor does not comply with the rules or no longer meets the conditions for recognised sponsorship, the IND can withdraw the recognition and remove the company from the IND website. Additionally, they can ban the organisation from restarting the application process of recognised sponsor for up to 5 years.
  • Withdrawal of residence permits: When a company has lost their recognition as a sponsor, the IND may also withdraw the residence permit of highly skilled migrants who are in employment with this company.

Advantages and benefits of being recognised as a sponsor

There is one core benefit to being a recognised sponsor. You are now a legal entity to hire candidates from across national borders! Your name is on the IND website public register. You can start the application procedure for your highly skilled migrant their residence permits online. But there’s more:

  • Accelerated application procedure: The IND aims to process applications from a recognised sponsor within two weeks, which is significantly faster than the standard 90-day timeframe.
  • Reduced administrative burden: When submitting applications, a recognised sponsor needs to provide fewer supporting documents. Often, a self-decleration stating that the individual meets all requirements is enough for the IND to consider the highly skilled migrant sufficiently guaranteed.
  • Online application options: A recognised sponsor can submit residence permit applications online through the IND’s Business Portal. This makes the entire process far simpler and faster.
  • No minimum or maximum number of applications: There is no requirement for a minimum or a maximum number of applications per year. It is entirely up to the recognised sponsor how many times they start the application procedure.
  • Acces to dedicated support lines: As recognised sponsor, a company has acces to specialized information lines and email support for assitance with questions about the application form or other questions related to applications.

Long waiting lines at the IND when applying without the help from a recognised sponsor.

Outsourcing sponsorship and employment of record (EOR)

Looking to hire a highly skilled migrant, but hesitant to become a recognised sponsor? Hilfort can help you hire the highly skilled migrant! We’re recognised as a sponsor and we’ve been recognised as a sponsor for over a decade. Our team consists of experts in their field, not just because they learned the trade but also because they lived it (i.e. part of our team are expats).

So what is that we offer? All the way at the start of the article, two groups or options were mentioned. Hilfort belongs to the second categorie. We hire expats on our payroll, and then we sign a contract with you stating that the employee may only work for you. In the Netherlands, this concept is called payrolling. It isn’t just the hiring process in which we help. Whether it’s taking care of the payroll taxes, a question from the expat regarding the status of their IND application form (which we have already submitted), or anything else related to expat during the entire length of their contract(s). We make this whole process worry-free and stress-free, because the highly skilled migrant applications are a relatively simple procedure when you’ve got the right people and the time and energy to put into it.

To become a recognised sponsor is just the first step for the company. After the company gains their recognition and their spot on the public register, they still have to guide the expat through numerous other steps before everyone can get back to work. We’ve written a blog on a number of things expats need to keep in mind while moving to the Netherlands. This will help your company keep track.

Welcoming the highly skilled migrant to the team.

Recognised sponsors, immigration and naturalisation service, and highly skilled migrants; Let’s sum it all up

You’ve found your perfect candidate, but they live abroad. They need a work permit, but right now you can’t help them obtain that work permit. If you want to become a recognised sponsor, you most likely have to worry about proving your cash flow in years prior, your continuity and solvency, and more. It’s a lengthy procedure. For your company, the recognition as a sponsor might not even be neccesary. It’s not just a big task to get the recognition from the IND. It’s keeping up with it that will be the real timesink. So allow Hilfort to take that burden from you. This is our field of expertise, and we gladly take care of it for you. That way, you can focus on what truly matters: Your own core business.

The 30% tax ruling in the Netherlands: A benefit for expats

Moving to a new country can be a real challenge. The 30% tax ruling makes it a bit easier for expats coming to the Netherlands. This tax advantage helps to save on the extra costs of living and working abroad. In simple terms, your employer can compensate your so-called ‘extraterritorial costs’ tax-free. The option to apply for the ruling makes the Netherlands an attractive destination for skilled professionals who are interested in a tax-free allowance and it also helps to develop Dutch labour market. Let’s talk about the 30% ruling: when it’s applicable, how it works, and how you can benefit from it.

What is the 30% ruling?

The 30% ruling is a tax benefit for employees who come to work in the Netherlands from abroad. Essentially, it allows employers to pay up to 30% of gross salary tax-free. This can significantly increase employee’s take-home pay. However, starting from January 2024, there’s a cap on the maximum amount you can receive tax-free, set at 30% of €233,000 for 2024, or €69,900 per year.

This cap means that the higher your salary, the more significant the impact of the cap will be on your tax-free allowance. For high earners, this change might reduce the overall benefit of the 30% ruling, but it still offers considerable tax savings.

Who qualifies for the 30% Ruling?

To be eligible for the 30% ruling, you must:

  • Be recruited or transferred from abroad (you must not have lived within 150 kilometres of the Dutch border for more than 16 months in the 24 months prior to your first working day in the Netherlands). This means you can’t have lived in Belgium, Luxembourg, or parts of Germany.
  • Have specific expertise that is not readily available in the Dutch labour market.
  • Meet the income criteria. In 2024, your salary, excluding the tax-free allowance, should be more than €46,107 (or €35,048 if you’re younger than 30 and hold a Master’s degree from a recognized university).

There are exceptions for scientific researchers and doctors in training. These categories can apply for the 30% ruling regardless of their (lower) salary.

Dropping from the 30% ruling to the 27% ruling.

Changes to the 30% rule in 2024

Here’s the kicker: Your maximum compensation is no longer 30% over the entire term. From January 2024, you’re only entitled to a maximum compensation of 30% of your salary for the first 20 months of your decision. For the second 20 months, you’re entitled to 20%, and for the third 20 months, you’re entitled to 10%. If you already had a decision in 2023, you can still be entitled to a maximum untaxed compensation of 30% for the entire term. There is a transition period for those employees, who already enjoy the ruling, depending of when they got it approved.

Hilfort’s advisors are happy to explain you more in regards to your (or your employee’s) situation.

Benefits of the 30% ruling

The 30% ruling is meant to help expats with there transition to the Netherlands. These are the main benefits:

  • Financial savings: when moving abroad, expats may experience difficulty adapting to the new culture, environment and financial expectancies. The 30% ruling helps buffer the financial adjustments. With the income tax-free adjustment that helps expats safe money and adjust to living in a new environment.
  • Convenience: there are more benefits for highly-skilled migrants wi ruling, for example they can simply change their driving license and don’t need to pass the exam.
  • Tax status: sometimes you could be eligible for partial non-resident status, which can result in benefits for income tax on savings and investments.

Applying for the 30% ruling

The application process is quite straightforward:

  1. Application: Together with your employer you submit an application to the Dutch tax authorities.
  2. Required documents: Provide necessary documents. E.g.: documents that show that you’ve being recruited from abroad, details of your education, employment contracts. By providing the requested documents you are submitting the necessities to validate the 30% ruling request. The tax authorities can then validate your request for the tax exemption by conducting the necessary checks.

We would recommend to start the application process as soon as possible. Discuss the timeline with your employer (or Hilfort). Early submission helps to start benefiting from the ruling without delay. But you always have an option to apply within 3 months after the start date. It is important to know, that first salaries you get in the Netherlands will be applied without the ruling, as the authorities need time to approve it. But as soon as the decision is ready, you will get your money back retrospectively. The average decision making time is 14 weeks.

Changes towards 2027

Starting from 2027, the 30% ruling will transition into a 27% ruling. This means that expats will only be able to receive 27% of their gross salary tax-free instead of 30%. Additionally, the salary threshold will be increased, making it more difficult for newcomers to qualify for the ruling. A transitional arrangement will be in place for expats who obtained the 30% ruling before 2027, allowing them to keep their 30% benefit for the duration of their original term. Expats entering after 2027 will need to meet the new thresholds and conditions to benefit from the reduced 27% ruling.

Common Questions

Can the 30% ruling be applied retroactively?

Yes, if the application is submitted within four months of starting your job, it can be applied retroactively. This flexibility ensures you don’t miss out on benefits if there’s a delay in the application process.

What if I change jobs?

You are still eligible to the 30% ruling if you switch within 3 months. However, the new employer should sent a new application. If you switch employers within three months, the ruling can continue with your new employer under certain conditions. This continuity makes it easier to maintain your tax benefits without significant disruptions.

Does the ruling apply to bonuses?

Yes, it can be applied to bonuses as part of your taxable salary. Including bonuses can further enhance your financial savings under the ruling.

How long is the decision about the 30% ruling valid?

The validity depends on when the decision was issued. For decisions issued between January 1, 2012, and January 1, 2019, it is valid for eight years. For decisions issued as of January 1, 2019, it is valid for a maximum of five years. Understanding the validity period helps in planning your long-term stay and financial strategies in the Netherlands.

Practical Tips for Expats

1. Financial Planning: With the phased reduction in the tax-free allowance, it’s pivotal to plan your finances. Maximize savings and investments during the initial 20 months when the tax-free allowance is highest.

2. Legal and Tax Advice: Consulting with a tax advisor or legal expert can help you navigate the complexities of the ruling and ensure you comply with all regulations.

3. Relocation Assistance: Many expats will find help of dedicated professionals useful while changing the countries. Hilfort is glad to assist in all the payroll and ruling questions.

4. Networking: Joining expat communities and professional networks can provide support and valuable information about living and working in the Netherlands. These networks can also offer insights into making the most of the 30% ruling.

Conclusion

The 30% ruling can make a big difference in your finances as an expat in the Netherlands. And even though the upcoming changes will have an impact, the 30% ruling still offers substantial benefits. For more details or if you want to know more about how to apply, feel free to reach out to us at Hilfort. You can also approach us with other questions, like the Dutch employment law. Our experts will make your stay in the Netherlands hassle free.


Still curious about how the 30% ruling can benefit you? Or perhaps you need a hand navigating the application process? Contact Hilfort today! We’re here to help you make the most of your move to the Netherlands. With our expertise, you can enjoy the financial benefits and ease into your new life with confidence.

From 30% ruling to (20)27% ruling

Recently, we published a post on LinkedIn about the changes regarding the 30% ruling that were expected to be announced on Prinsjesdag (Budget Day). Our expectations, which you can read about in part 1, were confirmed. However, that doesn’t mean that a new law came into existence, that still requires extensive voting. We do expect these changes to the 30% ruling to make it through the voting and be implemented in the next few years, possibly with some minor adjustments here and there.

What do we know now?

As mentioned earlier, the 30% ruling will eventually change to a 27% ruling. This will not happen in 2025 but as of January 1st, 2027. This means there will be a transitional arrangement in several areas, which we will explain in detail shortly. The salary threshold will also be significantly increased, so that incoming employees—the so-called expats—will be less likely to qualify for the brand new 27% ruling.

Enough talk. How will the next few years look like?

There will be transitional arrangements in several areas. We have summarized them for you, including changes that are already relevant as of this year (2024)!

2024:

Employees who are eligible to apply for the 30% ruling in 2024 or earlier will retain the 30% rate for the entire duration of the 30% ruling (usually 5 years or 60 months). The start date of the ruling is decisive and must include a start date in 2024 or earlier, even if the ruling is issued retroactively in 2025.

For example, an employee who receives a 30% ruling that starts on December 1st, 2024, will retain the 30% tax benefit until November 30th, 2029. The increased salary threshold will not apply to this group and will remain based on the current indexed salary threshold. This also applies to incoming employees under the age of 30 and in possession of a recognized master’s degree.

The previously announced reduction measures (from last year) are therefore completely off the table.

2025 and 2026:

Employees who receive their 30% ruling in 2025 or 2026 will already be part of the new regime, but will still enjoy the 30% benefit in both 2025 and 2026.

These employees will have a separate transitional arrangement, as they will receive a reduced benefit of 27% instead of 30% starting in 2027 but will not have to meet the increased salary criterion by 2027.

2027:

Everyone who becomes eligible for the 30% ruling after 2027 will receive only a 27% benefit and must meet a higher salary threshold, which will be indexed in the intervening years. Currently, the higher threshold is set at €50,436 (in 2024, it is €46,107), and the under30 version is set at €38,338 (in 2024, it is €35,048). It doesn’t make much sense to put too much stock in these figures as of yet, since they will be indexed in the coming years, the legislation won’t take effect for another two years, both chambers (2e kamer en 1e kamer) still need to approve it, and historically we’ve seen that until the law is written it is bound to be (slightly) altered.

In short, we now know that earlier measures will be reversed and that for the next two years not much will practically change. In 2027, if everything takes shape as is projected in this article, payroll administrators will face a greater challenge to keep track of which employees are still entitled to the 30% ruling and who has to settle for the 27% ruling if they make the salary threshold. Fortunately, you know where to find us by now, right?

Dutch employment law for expats

Renowned for its progressive labor laws, the Netherlands sets a global benchmark for worker rights, balancing economic growth with social welfare. At the heart of its employment philosophy lies a commitment to fairness, work-life balance, and inclusitivity. This makes employment in the Netherlands highly desirable.

The Dutch employment landscape

Expats stepping into this dynamic market will find a variety of work arrangements – from traditional full time roles to flexible part time positions and self employed ventures. The Dutch labour law provides a protective umbrella that covers extensive rights concerning contracts, dismissal protections, and unemployment benefits, ensuring a secure environment for all workers. This protective stance extends to promoting equality in the workplace, with stringent regulations against discrimination and a proactive approach to employee well-being.

Full time employees require a passport to move to the Netherlands

First steps in Holland: What expats need to know

Embarking on a career in the Netherlands marks the beginning of a new chapter. However, before diving into the Dutch work culture, there are essential legal steps and considerations that pave the way for a smooth transition. Here’s a roadmap to guide you through the initial processes:

Securing the right to work and live

First and foremost, expats from outside the EU/EEA and Switzerland need to obtain a work permit (TWV) and a residence permit. The highly skilled migrant visa is particularly popular, offering a streamlined process for those meeting the salary threshold and other criteria set by the Dutch government.

Registration and social security number

Upon arrival, registering with the local municipality is a must. This registration grants you a BSN (Burger Service Nummer), the Dutch social security and tax number, which is crucial for employment, opening a bank account, and accessing healthcare services.

Understanding Dutch Health Insurance

Health insurance is mandatory in the Netherlands. Expats must subscribe to a basic health insurance plan within four months of their arrival or upon receiving their residence permit. Failure to do so can result in fines and retroactive premium charges.

Banking in the Netherlands

Setting up a Dutch bank account will streamline your financial transactions, including receiving your salary and paying for services. Dutch banks often offer international services tailored to expat needs.

Housing and Living Arrangements

The housing market in the Netherlands is highly competitive, especially in the Randstad and larger cities. Expats should consider carefully to opt for temporary housing or a long term lease. Understanding your rights and responsibilities as a tenant is also crucial.

Cultural Adaptation

While not a legal requirement, familiarizing yourself with Dutch culture and society can significantly enhance your experience. The Dutch value direct communication, punctuality, and a good work-life balance. Learning the basics of the Dutch language, although not mandatory due to the widespread use of English, will help in everyday interactions and integrating more fully into the community.

Promoting work in the Netherlands

Understanding your employment contracts

Securing a job in the Netherlands is a significant milestone for expats, but it’s equally important to understand the nuances of your employment contract before signing on the dotted line. Dutch employment contracts are comprehensive documents that delineate your rights, obligations, and the terms of your employment. Here’s what you need to look out for:

Types of contracts

There are generally three types of employment contracts in the Netherlands – indefinite period (permanent contract), definite period, and temporary contracts. While permanent contracts offer the most security, fixed term contracts are common for expats and can lead to permanent employment.

Working hours and overtime

Your contract will specify your weekly working hours, including any expectations of overtime and compensation for it. Dutch and international law protects wokrers from excessive work hours, so it’s important to ensure that your contract reflects a healthy work-life balance.

Be aware that most in Netherlands employment law a trial period is standard. The Dutch dismissal law determines whether a trial period is valid, though a trial period rarely breaks Dutch civil code.

Monthly salary and Additional Compensation

Apart from your basic salary, the contract should outline any bonuses, allowances (such as travel or housing allowances), and holiday pay. In the Netherlands, employees are entitled to holiday pay, which is typically paid out in May and amounts to at least 8% of your annual salary.

Vacation and Leave Entitlements

Dutch employees are entitled to a minimum of 20 vacation days per year, with many employers offering more. Your contract should clearly state your leave entitlements, including specials leaves such as maternity/paternity leave and any company-specific leave policies. On top of that, there’s sick pay and holiday entitlement.

Notice Period and Termination conditions

Dutch employment law offers strong protection against dismissal, so ensure these conditions are clearly stated. Both you and your employer should be aware of this period.

Non-Compete Clauses

Some contracts include non-compete clauses that restrict your ability to work for competitors after leaving the company. If such a clause is included, it may impact your future employment opportunities, so it’s essential to understand any restrictions imposed.

Collective Labour Agreement (CAO)

Many sectors in the Netherlands are governed by collective labour agreements that may affect your employment conditions, like the minimum wage at your employer or how to handle employment disputes. If your role falls under a CAO, ensure you understand how it influences your contract terms.

Pension Plans

Employer-contributed pension plans are common in the Netherlands. Your contract should detail the pension scheme you’re enrolled in, including contribution rates and any conditions.

A new employment agreement, a new city

Navigating work permits and visas

Dutch law has created a maze of work permit- and visa processes. Although the Dutch immigration system is designed to be transparent and efficient, the specifics to ensure compliance and avoid any legal hurdles are highly complicated and require experienced support. At Hilfort, we’re especially experienced in the process for highly skilled migrants. These are professionals who meet a specified salary threshold, demonstrating the high demand for their skills in the Dutch job market.

Application process

For the highly skilled migrants, the employer (Hilfort) initiates the application with the Immigration and Naturalisation Service (IND). For this process, the employee requires a predetermined minimum wage. Sponsored employment agencies are required for this step. Hilfort is such an employment agency.

Documents and requirements

Applicants need to provide, among other documents, a valid passport, employment contract, academic qualifications, and proof of accomodation in the Netherlands. Specific requirements van vary, so it’s important to consult one of our experts at Hilfort.

Duration and renewal

Work permits and visas come with varying validity periods, often tied to the length of your employment contract. Keeping track of expiration dates is crucial, as renewals or changes in employment circumstances require timely notification to the IND.

Family members

In most scenarios, it’s possible to bring your family members. Consult our experts at Hilfort to find out exactly which documents your family requires to join you on your journey in the Netherlands.

Dispute resolution and legal resources

When it comes to working in the Netherlands, it is important to understand the available avenues for dispute resolution and accessing reliable legal resources to ensure a secure employment experience. Disputes, whether related to employment contracts, work conditions, legal issues or misunderstandings about legal obligations, can arise despite the best intentions of all parties involved. For both employees in the Netherlands and employers, knowing how to address these issues constructively is key to maintaining a positive working relationship and ensuring compliance with Dutch employment law for expats.

Employee perspective: Be aware of the rights and protections afforded to you under Dutch law. This includes understanding the process for raising grievances, whether through internal procedures or, if necessary, escalating to external bodies like the Dutch Labour Authority or through legal action to reach a settlement agreement.

Employer perspective: Ensure that your HR policies comply with Dutch employment standards, Dutch labour laws and Dutch dismissal law.

For those expats and companies in need of specialized legal advice or assistance with dispute resolution, consulting with experts who are well-versed in Dutch labour law can be invaluable. Firms like CBBS Advies offer professional guidance to navigate these complex issues, ensuring both employers and employees can find equitable solutions. For specific information or tailored advice, contacting the experts at CBBS Advies is a recommended step towards resolving any legal concerns in the expat employment context.

Employee rights and employee benefits for expats

The working conditions for expats in the Netherlands are beneficial thanks to Dutch legislation. One key financial incentive is the 30% ruling, which is designed to make the Netherlands an attractive destination for highly skilled professionals. Another benefit is the relocation allowance, with which the Dutch employment law recognizes the issues that come with migrating to a new country.

30% ruling:

The 30% ruling is a distinctive tax benefit offered by the Dutch government. It allows expats to receive 30% of their gross salary tax-free. To be eligible, expats must meet certain criteria, including possessing skills considered scarce within the Dutch labour market. This ruling not only serves as a financial incentive for potential expatriate employees but also simplifies the transition of living and working in a new country.

Relocation allowance:

Relocation allowances are designed to support expats in covering the initial costs associated with moving to a new country for work. These allowances can encompass a broad range of expenses, from moving and transport costs to temporary housing and language training.

Expat at Hilfort

At Hilfort, the complexity of securing work permits and visas for our international talents is handled with precision and case to allow a seamless transition for our employees to the Netherlands. We recognize the potential challenges expats face when navigating Dutch immigration laws and act as the navigator throughout the entire process, taking on legal, administrative, and procedural responsibilities.

From the moment an expat is offered a position, Hilfort steps in to manage the intricacies of the application process, from sponsorship recognition (through us) to liaising with the Dutch Immigration and Naturalisation Service (IND). Our dedicated HR professionals prepare and submit all necessary documentation while ensuring that every detail meets the regulatory requirements. We communicate directly with the authorities, addressing queries and providing additional information as needed, thereby lifting the burden from our employees.

Expats at Hilfort need only follow the guidance provided by our experienced team, submitting personal documents when requested and attending necessary appointments. We aim to make the process as straightforward as possible, allowing our new emplpoyees to focus on their relocation and integration into their new role without the stress of legalities. Hilfot’s approach is designed to provide peave of mind, demonstrating our commitment to supporting our international talents every step of the way.