The 30% Ruling: Does It Apply to DAFT Visa Holders?

This is not tax advice. Consult a qualified tax professional for your specific situation.

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The 30% ruling is one of the most talked-about tax perks in the Netherlands. It lets qualifying expats receive up to 30% of their salary tax-free. That's a huge benefit.

So naturally, one of the first questions people ask when researching the Dutch-American Friendship Treaty (DAFT) is: "Can I get the 30% ruling?"

The short answer: no. Here's why, and what you can use instead.

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What Is the 30% Ruling?

The 30% ruling (30%-regeling) is a Dutch tax benefit for employees recruited from abroad by Dutch employers. It's designed to compensate for the extra costs of relocating to the Netherlands.

How it works: Up to 30% of your gross salary is treated as a tax-free allowance. You only pay income tax on the remaining 70%.

Example: If you earn EUR 80,000, only EUR 56,000 is taxed. At the 36.97% rate, that saves you roughly EUR 8,900 per year.

It's a significant benefit, and it lasts up to five years (reduced from the original eight years in recent years).

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Why DAFT Holders Don't Qualify

The 30% ruling has specific eligibility requirements, and DAFT entrepreneurs don't meet them.

Requirement 1: You must be an employee. The 30% ruling is exclusively for people employed by a Dutch company. DAFT visa holders are self-employed. No employer means no 30% ruling.

Requirement 2: You must be recruited from abroad. The employer must have actively recruited you from outside the Netherlands. Since DAFT is a self-employment visa, there's no recruiting employer.

Requirement 3: Specific skill and salary thresholds. Employees must earn above a minimum salary threshold and possess skills that are scarce in the Dutch labor market. These criteria don't apply to self-employed individuals.

Reality Check: We've seen some DAFT applicants try to structure their situation to qualify. It doesn't work. The Belastingdienst is clear: self-employment under DAFT is not eligible for the 30% ruling. Don't waste time or money trying to make it fit.

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What If I Get Employed While on DAFT?

This is where it gets nuanced. DAFT allows you to be self-employed, and your visa is tied to your business. But what if you also take on employment?

The situation: Some DAFT holders eventually transition to employment with a Dutch company. If the employer applies for the 30% ruling and you meet all the criteria, you might qualify.

But: You'd typically need to have been recruited from abroad, which is harder to argue if you're already living in the Netherlands. There are exceptions for people who have lived in the Netherlands for less than a certain period, but it gets complicated.

Bottom line: If you're on DAFT and considering employment, talk to a tax advisor about whether the 30% ruling could apply to your specific situation.

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Tax Benefits DAFT Holders Actually Get

The 30% ruling isn't available, but DAFT entrepreneurs have their own set of tax advantages. Some of these are quite generous.

Zelfstandigenaftrek (Self-employed deduction): Around EUR 3,750 if you work at least 1,225 hours per year in your business.

Startersaftrek (Starter's deduction): An additional EUR 2,123 for your first three years in business. Stacks with the zelfstandigenaftrek.

MKB-winstvrijstelling (SME profit exemption): 12.7% of your profit (after deductions) is tax-free.

Business expense deductions: Everything from your office setup to software to business travel.

Tax credits: The algemene heffingskorting (up to EUR 3,362) and arbeidskorting (up to EUR 5,532) reduce your tax bill directly.

For the full breakdown of how Dutch taxes work for DAFT entrepreneurs, see our Dutch taxes guide for DAFT business owners.

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How Self-Employment Deductions Compare

Let's do the math to see how self-employment deductions stack up against the 30% ruling.

30% ruling on EUR 70,000 salary:

• Tax-free portion: EUR 21,000
• Tax savings: ~EUR 7,770

Self-employment deductions on EUR 70,000 business income:

• Zelfstandigenaftrek: EUR 3,750
• Startersaftrek: EUR 2,123 (first 3 years)
• MKB exemption: ~EUR 8,130 (12.7% of profit after deductions)
• Business expenses: varies (let's say EUR 15,000)
• Total deductions: ~EUR 29,000
• Tax savings: ~EUR 10,700

What We Wish We Knew: The self-employment tax benefits in the Netherlands are actually quite good. We spent months being envious of the 30% ruling before realizing our own deductions were saving us a comparable amount. Run the numbers for your situation.

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The US-Netherlands Tax Treaty Angle

While the 30% ruling doesn't apply to DAFT holders, the US-Netherlands tax treaty provides its own protections against double taxation.

Key treaty benefits for DAFT entrepreneurs:

• Prevents the same income from being fully taxed by both countries
• Allows Foreign Tax Credits on your US return for Dutch taxes paid
• Provides rules for which country gets to tax specific types of income

Between the treaty protections and tools like FEIE (Foreign Earned Income Exclusion), most DAFT entrepreneurs end up with a manageable overall tax burden.

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Frequently Asked Questions

Can my partner get the 30% ruling? If your partner gets employed by a Dutch company that recruits them and they meet salary and skill thresholds, potentially yes. Their employment situation is separate from your DAFT status.

Does the 30% ruling affect my DAFT visa? No. They're completely separate. The 30% ruling is a tax matter. DAFT is an immigration matter.

What about the partial non-resident tax status? The 30% ruling used to come with "partial non-resident taxpayer" status for Box 2 and Box 3 income. This was phased out in 2025. Even if you could somehow get the 30% ruling, this extra perk no longer exists.

Is there any way to get similar tax-free income as self-employed? The MKB-winstvrijstelling is the closest equivalent. It exempts 12.7% of your profit from tax. Not as dramatic as 30%, but it's automatic and requires no application.

For the full picture on how the US-Netherlands tax treaty works for DAFT entrepreneurs, see our complete tax treaty guide.

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The Bottom Line

The 30% ruling is a great benefit, but it's designed for employees, not entrepreneurs. As a DAFT visa holder running your own business, you won't qualify.

The good news: the Dutch self-employment deductions are genuinely generous. Between the zelfstandigenaftrek, startersaftrek, MKB exemption, and business expense deductions, you can significantly reduce your tax burden.

Don't let the 30% ruling factor into your DAFT decision. The self-employment benefits are solid on their own.

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We're not immigration lawyers or tax advisors--just Americans who did this. Requirements change, so verify with official sources.