The 30% ruling allows a portion of the gross salary (up to 30%) to be used as a tax-free expense allowance. To benefit from the relief, certain requirements must be met, such as a minimum salary level. In 2024, the relief can be applied to amounts up to 233 euros (maximum limit), and this limit plays an important role in calculating the benefits.
Good news: Most of the changes that were planned earlier were cancelled: in particular, the proposed reduction of the non-taxable amount to 20% after 20 months of using the 30% ruling, and then to 10%, was eventually cancelled!
What can change?
From January 1, 2027, the 30% ruling will change: the compensation will decrease from 30% to 27%. However, this reduction will not affect those who used the ruling before 2024 (thanks to the transitional rule).
Transition Rule: How Does It Work?
If you were receiving a 30% ruling before December 31, 2023, the transitional rule may provide you with temporary benefits. This applies to you if you received a ruling before December 31, 2023: even after 2027, you will be able to keep it at 30%.
However, if your ruling was temporarily suspended after 2023, the transitional rule will no longer apply if it is reinstated (unless the suspension was less than three months).
In addition, the minimum wages required to apply the benefit will be increased in addition to the usual indexation:
- For employees under 30 with a master's degree (or equivalent), the minimum wage will increase from 35 to 048 euros,
- For all other employees – from 46 to 107 euros.
If you received a ruling between January 1, 2024 and January 1, 2025, the indexed, but not increased, standards will apply to you.
In addition, if you received a ruling after January 1, 2024, then from 2025 you will no longer be able to be a partial tax resident. This means that you will need to indicate Box 2 and Box 3 in the declaration (that is, all your savings and accumulations).
However, these are just plans. We will keep you informed of any changes!
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