30% ruling becomes 27% in 2027: what it means for your Dutch mortgage

The Dutch 30% ruling changes in 2027. For many expats the tax-free allowance falls from 30% to 27%, but not everyone is affected in the same way, and the change does not touch your mortgage the way most people expect. It is one of several housing and tax changes covered in Prinsjesdag 2026 and your mortgage. Here is what changes, who keeps 30%, and what it means if you are buying a home or already own one.

This article is written by Luc Zwaan, our mortgage advisor at OHAO, who helps expats and internationals navigate the Dutch mortgage and housing market. Questions about your own situation? Contact us.

What is the 30% ruling?

The 30% ruling, officially the expat ruling (expatregeling), is a Dutch tax facility for employees recruited from abroad. It lets your employer pay part of your salary tax-free to compensate for the extra costs of moving to and living in another country.

The ruling runs for a maximum of five years. To qualify you must be recruited from abroad, have lived more than 150 km from the Dutch border for at least 16 of the 24 months before your first working day, and earn above the salary norm: €48,013 in 2026, or €36,497 if you are under 30 with a master's degree.

What changes to the 30% ruling in 2027?

For most newer users, the 30% ruling becomes a 27% ruling on 1 January 2027, and the salary norm rises. Which rules apply to you depends on when you started using the ruling.

Transitional rules for the expat ruling from 2027. The new salary norm is €50,436 (general) and €38,338 (under 30 with a master's) in 2024 prices, indexed each year; the Belastingdienst publishes the exact 2027 figures in December.

So two expats on the same salary can be treated differently in 2027 simply because their rulings started in different years.

Why the change? An earlier plan would have cut the benefit in steps from 30% to 20% and 10% during the five years. That plan was largely reversed: the allowance stays at 30% through 2026, then a flat 27% from 2027. The Tax Plan 2027 presented on Prinsjesdag leaves the ruling untouched, and the cabinet has said it does not intend to reduce it further, so 27% is the number to plan with.

What 27% does to your take-home pay

Your contractual gross salary does not change. A smaller share of it is paid tax-free.

On a €100,000 salary, the tax-free portion falls from €30,000 to €27,000. The extra €3,000 is taxed at the top rate of 49.5%, so your net income drops by about €1,485 a year, or €124 a month. On €150,000 it is about €186 a month. Your exact figure depends on your pension contributions and how your employer applies the ruling.

That is a real change, but a small one next to what happens when the ruling ends: the whole allowance becomes taxable and your net income drops by €1,100 or more a month on the same salary.

Does the 27% ruling mean a smaller mortgage?

Not with most lenders, and here is why.

• Lenders calculate on gross income. Your maximum mortgage is based on your gross annual salary and the affordability tables Nibud sets each year, together with your contract, debts and the interest rate; see how much can you borrow with a Dutch mortgage in 2026. The ruling changes how your salary is taxed, not what you earn. On €80,000 gross, your maximum is calculated on €80,000 whether your allowance is 30%, 27% or zero.

• Lenders are already looking past the ruling. A mortgage runs 30 years; the ruling runs five. Lenders assess whether you can still pay once the benefit ends and your full salary is taxed at normal rates. That is why the ruling rarely raises your maximum in the first place, and why going from 30% to 27% does not lower it.

• A few lenders do count the ruling. They add the extra net income for the remaining ruling years, on condition that the extra amount borrowed is repaid before the ruling expires. In practice that can add €20,000 to €50,000, depending on your salary and how many years are left. At 27% the extra is slightly smaller, and with two years or less remaining it rarely makes a difference.

• What every lender checks: your ruling decision letter from the Belastingdienst, your employment contract, the ruling's end date, and whether your employer will gross up your salary when it ends.

Example: €100,000 salary, ruling until end of 2029

*This is an example only. To check your personal situation and mortgage options, please contact one of our mortgage advisors.

The last row is the one that matters. At 30% or 27%, the cliff at the end of the ruling is the same, and your mortgage payment on 1 January 2030 is the same as the day before.

What happens to your mortgage when the ruling ends?

Nothing on the mortgage side. Your balance, interest rate and repayment schedule continue as agreed. What changes is your take-home pay, which drops while the payment stays the same. Lenders assumed this when they approved you, which is why the useful question is not only how much you can borrow today but whether the payment still feels comfortable once the ruling ends.

What to do before the ruling ends?

Budget on your post-ruling income.

• Work out your net pay without the allowance and check the mortgage payment against that number. If it is comfortable, the ruling is a bonus, not a dependency.

Ask your employer about a gross-up.

• Some employers raise your gross salary when the ruling expires to keep your net pay level. If they confirm it in writing, a lender could potentially use the higher future gross salary now.

Overpay while you have the benefit.

• Most Dutch mortgages allow 10% to 20% of the original loan to be repaid each year without penalty. The ruling years are the cheapest chance you will get to reduce the balance before your income drops, or to build the savings you need to get a mortgage in the Netherlands.

What documents do you need?

Alongside the standard mortgage application documents, a lender will ask for your expat ruling decision from the Belastingdienst. In full: recent payslips, an employer's statement (werkgeversverklaring), your employment contract, the ruling decision, passport and residence permit where applicable, and details of savings, loans and other obligations. Your advisor confirms the exact list for your lender. Whether you qualify at all is covered under Dutch mortgage eligibility.

Keep in mind that every situation is different. The examples in this article are for illustration purposes only.

Frequently asked questions

Is the 30% ruling ending in 2027?

No. For most people who started in 2024 or later, the maximum allowance changes from 30% to 27%. Anyone already using the ruling on 31 December 2023 keeps 30% for the remaining term.

I started my ruling in 2023. Do I move to 27%?

No. Under the transitional rules you keep the 30% maximum and the existing salary norm for the rest of your term, as long as you continue to meet the conditions.

Does the 27% ruling mean I can borrow 3% less?

No. Lenders calculate on gross salary, which the ruling does not change. With the few lenders that count the ruling as extra income, the extra becomes slightly smaller and depends mainly on how many ruling years you have left.