Changes 30% facility 2024

Article by Baat

Scaling back the 30% facility

4 December 2023
As of 1 January, the 30% facility for highly-skilled employees recruited from outside the Netherlands will be scaled back.  This means that the tax-free allowance decreases during the course of 5 years. 
Currently, employees applying the 30% facility do not pay taxes on a maximum of 30% of their salary during a period of 5 years. This tax free allowance is intended to compensate for extraterritorial expenses, i.e. the additional expenses foreign employees have to incur when coming to work in the Netherlands.

In the 2024 Tax Plan a measure was adopted to scale back the 30% facility. This measure entails that the tax-free allowance that may be paid, decreases during the course of 5 years:

  • over the first 20 months a maximum of 30% of the salary may be paid as a tax free allowance
  • the percentage drops to 20% for the following 20 months
  • and the percentage drops to 10% for the last 20 months

For employees that are already applying the 30% facility in December 2023, a transitional rule is provided under which the 30% facility will not be scaled back during the 5 year their 30% facility is in place.

Partial foreign taxpayer status

Employees applying the 30% facility may opt for a partial foreign taxpayer status, meaning they are treated as a non-resident taxpayer for the purposes of Box 2 (income from substantial interest) and Box 3 (income from savings and investments).

The partial foreign taxpayer status will be abolished from January 1, 2025. However, this amendment is also subject to a transitional rule. Employees who are applying the 30% facility in December 2023 will still be able to use this tax scheme until December 31, 2026 at the latest.

Capping 30% facility

The 2023 Tax Plan regulated that the tax free allowance that can be paid based on the 30% facility would be capped. This capping will take effect from January 1, 2024. From then on, a tax free allowance of maximum 30% of salary up to the ‘Balkenende norm’ can be paid. In 2024, this income norm will be € 233,000 and thus an employer can give a maximum tax free allowance of € 69,900.

The capping applies to employees using the 30% facility from January 1, 2023. There is a transitional rule for employees applying in December 2022. For these employees, the capping takes effect as of January 1, 2026, instead of January 1, 2024.


If you have any questions about the changes of the 30% facility, or if you would like to have more detailed information about your specific situation, please contact Baat.