Expats, mortgages and the 30% ruling

Responsible for the content: Ricardo Roso. Updated on 25 October 2026.

What is the expat scheme in 2026?

The expat scheme, often called the 30% ruling, provides a tax-free allowance for additional costs of working outside your country of origin. In 2026, your employer may reimburse up to 30% of your salary including the allowance tax-free, subject to conditions. This is not an automatic 30% reduction in your income tax.

You and your employer need a valid decision from the Dutch Tax Administration. The scheme lasts for up to five years; previous work or residence in the Netherlands may shorten this period. Your employer does not have to pay the full percentage. Discuss the allowance and your salary arrangements with your employer.

Source: Dutch Tax Administration: eligibility conditions.

Who may qualify?

You must be an employee recruited from abroad and meet the expertise requirement. In 2026, your taxable annual salary excluding the tax-free allowance must exceed €48,013. For employees under 30 with a qualifying academic master’s degree, the threshold is more than €36,497. Certain designated scientific researchers and doctors training to be specialists are exempt from the salary requirement.

For more than 16 of the 24 months before your first working day in the Netherlands, you must have lived more than 150 kilometres in a straight line from the Dutch border. Living just across the border is not enough. This matters in the Sittard area: someone moving from a nearby Belgian or German town will generally not meet this distance requirement.

Source: Dutch Tax Administration: expertise and salary thresholds.

How much can the allowance be?

Your taxable salary must still meet the income threshold after the allowance is applied. This means the full 30% is not possible at every salary level. In 2026, the allowance is calculated on a maximum annual salary of €262,000, giving a maximum allowance of €78,600 for a full year. A proportionate cap applies when the scheme covers only part of the year.

Source: Dutch government: changes and transitional rules.

What changes from 2027?

From 1 January 2027, the maximum allowance falls to 27% for many employees. If the ruling was already being applied by 31 December 2023, transitional rules may preserve the 30% maximum and the existing annually indexed salary threshold for the remainder of the valid period.

If the ruling was first applied in 2024, the maximum becomes 27% from 2027 with the existing indexed salary threshold. If first applied from 2025, the maximum becomes 27% from 2027 with a higher indexed threshold. We will add the 2027 amounts here once the official indexed thresholds have been checked.

Partial foreign tax liability for Box 2 and Box 3 was abolished from 2025. Transitional rules can still apply through 2026 to certain employees who already used the scheme before 2024. Obtain individual advice on international assets and taxation.

Source: Dutch Tax Administration: partial foreign tax liability.

Buying a home as an expat

The expat scheme does not automatically determine how much you can borrow. A lender assesses factors such as sustainable income, your employment contract, any residence requirements, debts and the property. A temporary tax benefit can end while your mortgage continues. Consider your monthly budget after the ruling ends as well.

Our calculator provides a general NHG mortgage estimate and does not separately model the expat scheme. Do not add a calculated net benefit or automatically increase your income by 30%. First establish which gross annual income can be used in your situation.

Explore the maximum mortgage calculator; always discuss an expat situation individually.

You can also read about buying your first home and the purchase process.

What should you prepare for a discussion?

An employment contract, recent payslips, an employer’s statement if available, your tax ruling with its end date, and details of any loans provide a starting point. Do not send identity documents or complete financial files through a public contact form. Ask RFD how to provide documents securely.

Discuss your housing plans in Sittard and the area from Echt-Susteren to Maastricht with RFD. The first introductory meeting is free. Check the tax treatment with your employer, the Dutch Tax Administration or a tax adviser; the expat scheme is not a residence permit.

Do you have a specific housing question? Book an appointment for an individual assessment.

Source: RVO: the expat scheme for employers.

This is general information, not personal mortgage advice or a finance offer. Your options and the tax implications depend on your circumstances and the provider's terms. Read the disclaimer.

Sources for this guide

General information from RFD. Sources consulted on 25 October 2026. Rules and terms may change.