Primary requirements for the
expat ruling (former 30% ruling)

To understand the requirements for the expat ruling better, it is useful to look at the history of the ruling. In order to be eligible to the expat ruling, at the moment of first arrival in the Netherlands, the following primary conditions / requirements should be met.

the employee should be hired while living abroad
the employee should have lived at a distance of more than 150 kilometer from the Dutch borders for at least 2/3 out of the 24 months prior to the start date of the Dutch employment
the empoyee should be highly skilled and scarce on the Dutch labor market

Historical background and the current requirements
Initially a precursor of the ruling was adopted, which eventually evolved in the 30% ruling which that we know today, that changed name to expat ruling in 2026. In the ruling certain things are arranged to reduce administrative difficulties in case of international assignments and also to attract international talent for roles for which no suitable workers could be found in the Netherlands. If an employer was not able to recruit a suitable highly skilled person for a role in the company within the Netherlands after looking for at least 3 months, they could shift focus and look across the border.

This basically explains that the expat ruling can only be applicable to employees who were hired while not living in the Netherlands and it also is the the origin of the highly skilled / scarce on the labor market requirement. Because of the fact that scarcity is subjective which lead to many time consuming discussions, the wage requirement was put in place. However, in order to qualify it still needs to be the employer who looks for the highly skilled candidate. It is possible that an application for the ruling is rejected on basis of the scarcity requirement, even if the wage requirement is met.

The ruling was designed to reduce administrative processes for employers. In the Netherlands, like in many other countries, the Tax Act offers room for tax relief in case certain 'extraterretorial expenses' are paid to international employees. Extraterretorial expenses are expenses that someone could have in case of a temporary international assignment: double housing expenses, cost of living expenses, hardship expenses, home travel, costs of work permits, additional expenses tax filing etc. Such expenses can often be (fully or partially) paid out free of tax - being company expenses. Under the rules of the expat ruling, the wage + all extraterretorial expenses are added up and 30% of the total amount can be reimbursed free of tax.

Considering the fact that the tax free reimbursment replaces certain extraterretorial allowances, the 150 kilometer requirement makes a lot of sense. In 150 kilometer situations it is easy to travel to work and/or to move closer to the Dutch border without moving internationally. It would lead to unfair competition for residents of the Netherlands.

Hired while living abroad requirement
In most situations it is clear if someone lived in the Netherlands or abroad at the moment of agreement on employment. However, seemingly small details could raise questions.

Indicators

contract signing date is prior to the move date
address on the employment contract is a foreign address,
no references to any ties to the Netherlands in the CV / Resume
in supporting documentation (proof) there are no signs of presence in the Netherlands in the period around contract completion.

Residency should be determined on the basis of facts and circumstances. In some situations, the country of residence can be subject to discussion due to limited ties to one country for example in case of foreign students who stay here for the purpose of study (temporary residence permit, temporary housing, limited ties and still strong ties with home country).

150 kilometer requirement
When it is clear where an employee lived in the 24 months directly prior to the start of the Dutch employment, it is in general also clear whether this address was not within the 150 kilometer zone from the Dutch borders.

Indicators

in supporting documentation (proof) there are no signs of presence in the Netherlands or in the 150 kilometer zone from the Dutch borders, in the period around contract completion.
no references to any ties to the Netherlands in the CV / Resume or in the 150 kilometer zone from the Dutch borders in the 24 months prior to start of the Dutch employment

Highly skilled and scarce on the labor market - wage requirement
This requirement used to be the most subjective one. Since the wage requirement is in place, at first sight it is quite clear to determine if someone meets the requirement. Basically if the agreed salary is sufficient to pay a taxable wage that exceeds the applicable wage requirement, an employee is in principal considered as scarce on the labor market. However, in the application process, the role and job desccription are also relevant and the CV / Resume is consulted by the Dutch tax authorities in order to determine whether a newly hired employee indeed is highly skilled and sufficiently experienced.

Indicators

contract salary should be sufficient to pay a taxable wage that exceeds the wage requirement
role and job description are specific and require skill and experience
level of skill and experience in the CV / Resume match up with the requirements for the role
Pay level is competative from a Dutch perspective

Previous stay in the Netherlands (in the 25 years prior to start of employment)
Previous stay in the Netherlands in the 25 years prior to start of employment leads to reduction of the maximum period of applicability if the total combined period(s) of stay in any of the 25 years exceeds:

20 days for professional/work purposes
6 weeks (or 42 days) for personal reasons
a one time consecutive 3 month period for personal reasons

More details on the how reduction is calculated can be found here.

Switching employers
When an employer hires an employee that has the ruling granted, the ruling can be transferred to the new employer. In this situation, in order to re-apply, the new employment should be agreed on not later than 3 months after ending of the old (active) employment. Furthermore, the wage requirement should be met troughout the period that it was applied with the previous employer.