How does the 30 percent ruling in the Netherlands affect Bulgarian workers?
The 30% ruling in the Netherlands allows qualifying expat employees, including workers from Bulgaria, to receive up to 30% of their gross salary tax-free, significantly reducing their Dutch income tax liability. This benefit applies to employees hired from abroad who bring specific expertise that is scarce in the Dutch labour market. The sections below address the most common questions Bulgarian professionals and their employers have about this ruling.
Who qualifies for the 30% ruling in the Netherlands?
To qualify for the 30% ruling in the Netherlands, an employee must be recruited from outside the Netherlands, possess specific expertise that is considered scarce in the Dutch job market, and meet a minimum salary threshold set by the Dutch tax authority. For 2026, the general minimum taxable salary threshold is approximately €46,107 per year, with a lower threshold applying to employees under 30 who hold a qualifying master’s degree.
For Bulgarian workers, EU citizenship removes work permit barriers, but the 30% ruling eligibility criteria still apply in full. The key conditions are:
- The employee must have been living more than 150 kilometres from the Dutch border for at least 16 of the 24 months prior to their first working day in the Netherlands
- The employer must be a Dutch-registered entity or a recognised employer under Dutch tax law
- The employment contract must be concluded with a Dutch employer or a foreign employer with a Dutch payroll presence
- The employee’s taxable salary must meet the minimum threshold after the 30% exclusion is applied
Bulgaria’s location places most of its cities well beyond the 150-kilometre boundary, meaning the majority of Bulgarian workers relocating to the Netherlands will satisfy the distance criterion without difficulty. However, meeting the salary threshold and demonstrating scarce expertise remain the most critical eligibility gates.
How does the 30% ruling reduce the tax burden for Bulgarian expats?
The 30% ruling reduces the tax burden for Bulgarian expats by allowing their employer to pay up to 30% of their gross salary as a tax-free allowance, notionally covering extraterritorial costs such as relocation, housing, and the cost of maintaining ties to their home country. This means only 70% of the gross salary is subject to Dutch income tax, which can result in a substantial net income advantage.
To understand the practical impact, consider that the Netherlands applies a progressive income tax system. In 2026, income above a certain bracket is taxed at a rate exceeding 49%. By removing 30% of gross salary from the taxable base, an employee’s effective tax rate drops considerably. For a Bulgarian professional earning €70,000 gross annually, the 30% exclusion removes €21,000 from the taxable income, a meaningful reduction in the annual tax bill.
Beyond the income tax saving, employees benefiting from the 30% ruling may also opt to be treated as a partial non-resident taxpayer. This status allows them to avoid Dutch taxation on certain categories of foreign income, such as savings held in Bulgarian bank accounts, which can further reduce their overall tax exposure during the ruling period.
How long does the 30% ruling last for workers from Bulgaria?
The 30% ruling currently lasts for a maximum of five years for employees who begin benefiting from it under the revised legislation. This five-year cap replaced the previous eight-year maximum following legislative changes that took effect in 2024 and applied to new applicants from that point forward.
For Bulgarian workers who were already benefiting from the ruling before the legislative changes, transitional arrangements may apply, and the duration of their entitlement may differ. It is essential for both employees and employers to verify the specific terms applicable to their individual situation with a Dutch tax adviser or the Belastingdienst (Dutch Tax and Customs Administration).
If a Bulgarian employee changes employers during the ruling period, the benefit does not automatically transfer. A new application must be submitted by the new Dutch employer, and the remaining entitlement period carries over rather than resetting. Any gap in employment of more than three months will typically terminate the ruling entirely, requiring the employee to requalify from scratch if they re-enter the Dutch workforce.
What is the application process for the 30% ruling?
The 30% ruling is applied for jointly by the employer and the employee through a formal request submitted to the Dutch Tax and Customs Administration (Belastingdienst). The application must be filed within four months of the employee’s first working day in the Netherlands for the benefit to apply from the start of employment. Applications submitted after this window are still possible, but the ruling will only take effect from the first day of the month following approval.
The application process involves the following steps:
- Gather documentation: The employer and employee collect evidence of the employee’s foreign residence history, employment contract, salary details, and relevant qualifications
- Complete the request form: The employer submits the official request form (available from the Belastingdienst) on behalf of both parties
- Await the decision letter: The tax authority issues a written ruling confirming eligibility and the applicable period
- Apply the benefit via payroll: Once approved, the employer adjusts payroll so that 30% of the gross salary is paid as a tax-free allowance
For Bulgarian professionals whose employer does not yet have a Dutch payroll structure, for instance, those joining a foreign company entering the Netherlands, an Employer of Record arrangement can resolve this. The EoR acts as the legal employer in the Netherlands, enabling the 30% ruling to be applied correctly while the underlying business avoids the complexity of establishing a Dutch legal entity.
Does the 30% ruling affect pension, social security, or other benefits?
The 30% ruling does not reduce entitlement to Dutch social security benefits, but it can affect pension accrual and the calculation of certain income-related allowances. Because the tax-free component of salary is excluded from the taxable wage, pension contributions calculated as a percentage of pensionable salary may be lower, which can reduce pension accumulation over the ruling period.
On the social security side, Bulgarian workers employed in the Netherlands remain fully subject to Dutch social insurance contributions, including contributions to the national insurance schemes covering state pension (AOW), long-term care (Wlz), and survivor benefits (ANW). These obligations are unaffected by the 30% ruling, meaning employees continue to build social security entitlements in the normal way.
However, income-related benefits such as healthcare allowance (zorgtoeslag) or rental allowance (huurtoeslag) are calculated based on the taxable income figure. Since the 30% ruling reduces taxable income, Bulgarian expats may find themselves eligible for certain means-tested allowances they would not otherwise qualify for, an indirect financial benefit worth factoring into overall compensation planning.
What changes to the 30% ruling should Bulgarian workers know about?
Bulgarian workers and their employers should be aware that the 30% ruling has undergone significant legislative changes in recent years, with further adjustments taking effect in 2024 and 2025. The most consequential change is the reduction of the maximum benefit period from eight years to five years for new applicants. Additionally, a phased reduction mechanism was introduced for a period, under which the tax-free percentage would taper from 30% to 20% and then 10%, though this tapering was subsequently reversed following political and business pressure, restoring the flat 30% rate for the full approved period.
Key changes Bulgarian expats should track include:
- Salary threshold adjustments: The minimum salary threshold is indexed annually. Workers must ensure their salary continues to meet the threshold throughout the ruling period, not only at the time of initial application
- Partial non-resident taxpayer status: This option was modified alongside the broader ruling changes. Workers should confirm with a tax adviser whether electing this status remains advantageous given their specific asset and income profile
- Transitional provisions: Employees who began benefiting from the ruling before the 2024 changes may be subject to different rules. Confirming which regime applies is critical to avoiding unexpected tax liabilities
- Employer compliance obligations: Employers administering the ruling must maintain accurate payroll records and ensure the ruling is applied correctly to avoid penalties during tax audits
Given the pace of legislative change in this area, Bulgarian professionals relocating to the Netherlands in 2026 should seek up-to-date advice from a qualified Dutch tax specialist before and after arrival, rather than relying on information that may already be outdated.
How Blue Lynx supports Bulgarian workers navigating Dutch tax benefits
Understanding the 30% ruling is one piece of a much larger puzzle when relocating to the Netherlands. Blue Lynx’s Expat Advice service provides internationally mobile professionals with practical, experience-backed guidance on exactly these complexities, from tax regulations and work permit processes to day-to-day settlement in the Netherlands.
For Bulgarian professionals and the organisations hiring them, Blue Lynx offers:
- Guidance on 30% ruling eligibility and the application process in the context of your employment arrangement
- Employer of Record services that provide a compliant Dutch payroll structure, enabling the ruling to be applied correctly from day one
- Support navigating IND processes, visa requirements, and Dutch employment law
- Access to a trusted network of legal, tax, and relocation specialists
If your organisation is bringing Bulgarian talent to the Netherlands or supporting employees through relocation, speak with the Blue Lynx team to understand how to structure employment compliantly and competitively from the outset.