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?

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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.