Knowledge Migrants
The high-tech labor market in which A12 is active also consists of many knowledge migrants. If you, as an employer, also want to be active in this sector, it is important to have a good understanding of this world. A12 Consultants can support you with this.
In any case, you will find the most important points below. Knowledge migrants is a catchall term for all highly educated migrants. As long as they come from countries that are members of the EU, there are no special requirements. But if they come from a country outside the EU, they can only be employed if they are in possession of a residence permit. The Dutch government has drawn up a special scheme for this group of migrants that is faster and easier than that for other groups, the knowledge migrant scheme.
To be eligible for this scheme, companies must be recognized by the IND as a sponsor. This is a relatively simple procedure that does come with a price tag.
Requirements that knowledge migrants must meet to be eligible to receive a work permit;
The following criteria apply as of January 1, 2025:
- If the knowledge migrant is over 30 years old, the employer must pay a salary of at least €5,688 gross per month, excluding VAT. 8% holiday allowance.
- If the migrant knowledge is younger than 30 years old, the employer must pay a salary of at least € 4,171 gross per month, excl. VAT. holiday pay.
- Knowledge migrants, recent graduates (orientation year for highly educated people): € 2,989.00
- The employer is a recognized sponsor with the Immigration and Naturalization Service (IND).
Adjustment 30% Scheme
Highly educated foreign employees, or expats, can receive annual tax-free compensation from their employer, up to 30% of their salary. This scheme is intended to compensate them for costs such as travel and furnishing a home. However, from January 1, 2024, they will gradually receive less tax benefit. The government has plans to change the 30% ruling from January 1, 2027, as stated in the Tax Plan 2025. This proposal must still be approved by both the House of Representatives and the Senate.
Tax benefit for additional costs of foreign employees
The 30% scheme is aimed at foreign employees who work temporarily in the Netherlands and have an income above € 46,107 per year. Under certain conditions, they can receive a tax-free allowance of up to 30% of their salary for five years, based on a maximum amount of € 233,000 per year. The employing party is responsible for paying this compensation and for applying for the tax exemption from the Tax Authorities. This compensation is intended to compensate for costs associated with working in the Netherlands, such as travel costs and additional expenses for housing and living expenses. Many expats have to rent a home in the Netherlands while they also own a house in their home country.
Conditions for the 30% ruling
The conditions for obtaining the 30% ruling can be found on the Tax Authorities' website. The employer must apply for this scheme.
Changes in the 30% ruling since January 1, 2024
Since January 1, 2024, expats who meet the conditions receive:
- 30% tax free during the first 20 months;
- 20% tax-free for the following 20 months;
- 10% tax free in the last 20 months.
Previously, highly educated foreign employees received a tax-free allowance of 30% of their annual salary for five years. Expats who took advantage of the scheme in 2023 retain the right to the tax-free 30% allowance for the full five years.
30% ruling for amounts up to € 233,000
Expats can apply the tax exemption to their salary up to € 233,000 per year (amount for 2024), which is the maximum amount according to the Top Income Standardization Act (WNT). For expats who have received the tax-free 30% allowance since 2022, the ceiling for top salaries applies from January 1, 2026.