The salary threshold is one of the key conditions for qualifying for the 30% (expat) ruling. At the time of application, the employee’s fixed taxable salary must meet the applicable minimum, calculated before applying the 30% tax-free allowance.
Once the ruling is granted, the employee must continue to satisfy this minimum salary requirement for the entire duration of the 30% ruling. All regular salary components—both fixed and variable—may be taken into account. If, in any year, the taxable salary after applying the 30% allowance falls below the required threshold, the 30% ruling will be revoked retroactively to the first day of that year and permanently terminated for the rest of the individual’s stay in the Netherlands.
The salary threshold is determined on a calendar-year basis and is pro-rated for partial years of employment in the Netherlands (for example, due to immigration or emigration). However, part-time work does not lead to a pro-rated threshold—the full annual minimum still applies.
Questions? Please feel free to contact me (danielle.peeters@tax4expats.nl)
