The 30% ruling is one of the biggest financial benefits for skilled migrants in the Netherlands. It allows your employer to pay 30% of your gross salary tax-free, considerably increasing your net income. But when it comes to applying for a mortgage, many expats are surprised to learn that the ruling does not work the way they expect.
Some lenders factor it in. Most do not. And with the ruling set to be reduced to 27% from 2027, understanding how it affects your mortgage now — and how to plan for when it ends — is essential.
In this guide, Luc mortggage advisor at OHAO explains how Dutch mortgage lenders treat the 30% ruling in 2026, what documents you need, and how to make the smartest financial decisions before, during, and after the ruling period.
What is the 30% ruling?
The 30% ruling (also called the expat ruling) is a Dutch tax facility for highly skilled migrants recruited from abroad. If you qualify, your employer can pay up to 30% of your gross salary as a tax-free allowance to cover extraterritorial costs — things like relocation, travel, and the higher cost of living in the Netherlands.
To qualify in 2026, you must meet these conditions:
You were recruited from abroad (you lived more than 150 km from the Dutch border for at least 16 of the 24 months before starting your Dutch employment).
You meet the minimum salary threshold: €48,013 taxable income per year (or €36,497 if you are under 30 with a Master's degree).
You have specific expertise that is scarce in the Dutch labour market.
The ruling currently applies for a maximum of five years. In 2026, the tax-free allowance is capped at 30% of a maximum salary of €262,000 (the WNT norm).
How does the 30% ruling affect your mortgage?
This is the question every expat with the 30% ruling asks — and the answer is a little more detailed than you might expect.
The standard rule: lenders use your gross income
Dutch mortgage lenders calculate your maximum mortgage based on your gross annual income — what you earn before tax. Because the 30% ruling is a tax benefit (it changes how much tax you pay, not how much you earn), most lenders do not give you a higher mortgage because of it.
In other words: if you earn €80,000 gross, your maximum mortgage is calculated on €80,000 — regardless of whether you have the 30% ruling or not. The ruling boosts your net (take-home) pay, but most banks do not translate that into extra borrowing capacity.
The exception: a small number of lenders do factor it in
A small number of Dutch lenders are willing to include the 30% ruling benefit in their mortgage calculations. When they do, they typically calculate the extra borrowing capacity based on your higher net income during the remaining ruling period. The additional amount borrowed must then be repaid before the ruling expires. For more information which mortgage lender fits the best your current situation with 30 % ruling, please contact our mortgage advisors.
In practice, this can add anywhere from €20,000 to €50,000 to your maximum mortgage, depending on your salary and the remaining term of your ruling period. However, this approach is not standard practice — neither banks nor the industry code of conduct supports it.
What happens when the 30% ruling expires?
This is the most important question to plan for. When your 30% ruling ends, your net income drops — in some cases by €500–€1,000+ per month — because the full 30% of your salary becomes taxable again.
Your mortgage payment stays the same. But your disposable income shrinks.
How lenders protect against this?
Most lenders already account for the expiry when they calculate your mortgage. They assess whether you can still afford the monthly payments after the ruling ends, based on your full gross salary taxed at normal Dutch rates. This is why the 30% ruling often does not lead to a higher mortgage — the bank is already looking at your post-ruling income.
What you should do
Budget based on your post-ruling net income, not your current higher take-home pay. Use the surplus from the 30% ruling to build savings, not to stretch into a higher mortgage you cannot comfortably afford later.
Check if your employer will gross up your salary when the ruling expires. Some employers increase your gross salary to compensate for the tax change, keeping your net income roughly the same. If your employer confirms this in writing, the lender can use the higher future gross salary in the calculation.
Overpay your mortgage during the ruling period. The extra net income gives you a unique opportunity to make additional repayments, reducing your outstanding balance and monthly obligation before your income drops.
2027 change: the 30% ruling becomes a 27% ruling
An important change is coming. From 2027, the maximum tax-free allowance for new applicants will be reduced from 30% to 27%. This is a partial reversal of an earlier plan that would have phased the ruling down to 30-20-10% — that more drastic reduction was largely reversed by the Dutch government, keeping the benefit at 30% in 2025 and 2026 before dropping to 27% in 2027. A higher salary threshold will also apply from 2027 onwards.
If you already have the 30% ruling in 2026, transitional rules may apply depending on when your ruling started. It is worth checking with a tax advisor how this affects your specific situation.
For mortgage planning purposes, this means:
If you are buying in 2026 under the 30% ruling, your current benefit stays at the full 30%.
If you are planning to buy in 2027 or later, your net income advantage will be slightly smaller, which could affect your savings rate for closing costs and deposit.
Mortgage interest deduction and the 30% ruling
One benefit many expats overlook: when you buy a home in the Netherlands, the interest you pay on your mortgage is tax-deductible in Box 1 of your income tax return. In 2026, the maximum deduction rate is 37.56%.
For expats with the 30% ruling, this creates a significant dynamic. Because only 70% of your salary is taxed, your taxable income is lower, which means the mortgage interest deduction has a smaller absolute effect. You still get the deduction, but the tax saving in euros may be less than for someone without the ruling on the same gross salary.
However, once the ruling expires and your full salary is taxed, the mortgage interest deduction becomes more valuable because you are paying more income tax. This partially softens the blow of losing the ruling.
Your mortgage advisor can model this for you and show the before-and-after scenarios.
Documents you need as a 30% ruling holder
When applying for a mortgage with the 30% ruling, you will need all the standard documents plus a few extras:
Employer statement (werkgeversverklaring) — listing your gross salary and all components.
Recent payslip — showing the 30% ruling applied to your salary.
30% ruling decision letter from the Belastingdienst — confirming the ruling is active and its expiry date.
Employment contract — showing your permanent or temporary status. If temporary, you will also need an intentieverklaring (letter of intent for permanent employment).
Passport and BSN — standard for all mortgage applications.
Proof of residence permit (if applicable for non-EU nationals).
Make sure the 30% ruling decision letter clearly shows the start and end dates. Lenders use the remaining period to assess affordability.
Common mistakes expats make
Assuming the 30% ruling automatically means a bigger mortgage. It usually does not. Most lenders use gross income, not net.
Not planning for the income drop when the ruling expires. This catches many expats off guard. Budget conservatively.
Forgetting to include the ruling decision letter. Without this document, the lender cannot verify your tax status or ruling period.
Not checking if their employer will adjust salary post-ruling. If your employer will gross up your pay, get it in writing — it can increase your mortgage.
Stretching to the maximum mortgage based on current net income. The 30% ruling gives you more cash flow now, but it's temporary. Use the extra wisely.
How to maximise your position as a 30% ruling holder
If you are planning to buy a home while you have the 30% ruling, here are the smartest steps:
Save aggressively during the ruling period. Your higher net income is temporary. Use it to build the savings you need for closing costs (typically 4–6% of the purchase price).
Buy earlier rather than later. The sooner you buy, the more years of ruling benefit you have to build a financial reserve and overpay your mortgage.
Ask your employer about a gross-up clause. If they will compensate for the ruling expiry by increasing your gross salary, this directly increases your mortgage capacity.
Work with an advisor who knows lender policies. Not all lenders treat the 30% ruling the same way. For more information, please contact our mortgage advisors.
Consider your full financial picture. How do your debts, salary components, and contract type all fit together? A specialist advisor can model every scenario.
Frequently asked questions by expats
Does the 30% ruling increase my maximum mortgage?
In most cases, no. Lenders use your gross income, which is the same whether or not the ruling applies. A small number of lenders do factor in the higher net income for a limited additional amount, but this is not standard.
What happens to my mortgage when the 30% ruling ends?
Your mortgage itself doesn't change. The interest rate, terms, and monthly payment all stay the same. What does change is your take-home income, because once the 30% ruling ends, your full salary becomes taxable.
In most cases, lenders already take this into account when reviewing your mortgage application. They check whether the mortgage would still be affordable once the tax benefit expires.
Will the change to 27% in 2027 affect my current ruling?
For people who already have the 30% ruling, transitional rules may apply. The planned reduction to 27% mainly affects new applicants from 2027 onward.
Can my employer's gross-up promise help my mortgage?
Yes. If your employer confirms in writing that they will increase your gross salary when the ruling expires to maintain your net income, lenders can use this higher future salary in their calculation.
I also have a temporary contract. Can I still get a mortgage?
Yes, in most cases. If your employer provides an intentieverklaring (letter of intent for a permanent contract), lenders will treat your income as stable.
Our mortgage advisors at OHAO help expats with the 30% ruling on a daily basis. We know exactly which lenders offer the best terms, how to structure your application for maximum borrowing power, and how to plan for the day the ruling ends. Whether you have just arrived in the Netherlands or your ruling is about to expire, we can help you check your mortgage options.
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