Freelancing as an expat: the 30% ruling and your options

The Dutch 30% ruling is one of the most attractive perks for expatriates working in the Netherlands. It exempts 30% of your gross salary from income tax, making a net income of roughly €60,000 the equivalent of working for €86,000 elsewhere. But here's the catch: the ruling was designed for employees. If you want to freelance, the path is less straightforward—and which legal form you choose makes all the difference.

What the 30% ruling is (and who qualifies)#

The 30% ruling, formally the "benefit of exemption from income tax" (voordeel vennootschapsbelasting), is a Belastingdienst program for skilled migrants. Here's what it does:

Standard qualification:

• You are an employee with an employment contract
• You were not living in the Netherlands in the 2 years before starting work
• Your employer applies for it on your behalf (they cover the 30% difference between your gross salary and your take-home)

The catch for freelancers: you are not an employee, so the ruling nominally doesn't apply to you.

Why eenmanszaak loses the 30% ruling#

As a sole proprietor (eenmanszaak), you are self-employed, not an employee. The 30% ruling explicitly requires an employment relationship with a Dutch employer. The Belastingdienst has been clear: a freelancer operating as an eenmanszaak cannot claim the ruling.

If you arrive in the Netherlands as an expat, start freelancing solo, and hope to keep the 30% ruling from a previous job—you lose it the moment your employment ends. Your profit as a freelancer is taxed at your full marginal rate (up to roughly 49.5% on high income after deductions).

This is the critical decision point: do you want the ruling, or do you want the flexibility of freelancing?

How to keep the 30% ruling: the BV-plus-DGA-salary route#

There is a way to have both: incorporate a BV (besloten vennootschap) and pay yourself a DGA salary.

Here's the structure:

1. Incorporate a BV (a private limited company)
2. Sign an employment contract with your own BV as the "employer"
3. Pay yourself a salary (gross) from the BV
4. Apply for the 30% ruling on that salary—just as if an external company hired you
5. The BV covers the employer's share of the tax difference (roughly 30% × your salary × 49.5% marginal rate)
6. Your take-home is the salary minus your employee tax, but with the 30% exemption applied

The math (simplified example):

Suppose you invoice €5,000/month in freelance revenue:

• As eenmanszaak: €5,000 × 12 = €60,000 annual profit → taxed at ~49.5% after deductions → roughly €30,000 take-home
• As BV with €4,000/month DGA salary + 30% ruling:
  • You declare a salary of €4,000/month (€48,000/year)
  • The 30% exemption applies: you pay tax on 70% = €33,600
  • Tax on €33,600 at ~49.5% ≈ €16,632 → your net salary ≈ €31,368
  • The BV profits (€60,000 − €48,000 = €12,000) are taxed at corporate rate (~19%) ≈ €2,280
  • Total take-home ≈ €33,648 (before dividend/withdrawal)

The BV structure leaves you with more money (thanks to the 30% ruling) and separates your business liability, but it has setup costs (€500–€2,000) and ongoing compliance (€1,500–€3,000/year for a boekhouder).

When the BV-plus-30%-ruling break-even kicks in#

The overhead of a BV is worth it only above a certain income. Here's the rough threshold:

• Below €40,000/year profit: The BV's compliance costs ($1,500–$3,000/year) eat up the tax savings. Stay as eenmanszaak.
• €40,000–€60,000/year: Break-even territory. A BV might save you €500–€2,000/year after costs, but it's not huge.
• Above €60,000/year profit: The 30% ruling savings clearly beat the overhead.

For an incoming expat, the BV-plus-30% structure makes sense if you expect to invoice more than ~€5,000–€6,000/month. Below that, you're better off negotiating an employment contract with a client (even if part-time) or waiting until your revenue grows.

The 30% ruling application process (as a BV owner)#

If you've incorporated a BV to keep the ruling, here's what happens:

1. Your BV signs an employment contract with you, specifying a gross annual salary, benefits, and tax withholding
2. Your BV applies for the 30% ruling via the Belastingdienst website (Mijn Belastingdienst Zakelijk), or through a tax advisor
3. The Belastingdienst approves or denies (typically within 2–4 weeks)
4. Once approved, your payroll is set up so that the 30% exemption applies to your salary withholding
5. Your BV reports the DGA salary on the corporate tax return

The key requirement: the employment contract must be genuine. You can't just declare a salary and do none of the administrative work. Your BV should:

• Withhold income tax and social contributions from your salary (just like any employer)
• Pay your salary to your personal bank account monthly
• Issue you an annual 8a statement (loonspecificatie) showing gross salary, tax withheld, and the 30% ruling benefit
• File timely payroll returns (LB01)

Time limits and the application window#

The 30% ruling must be applied for within 4 weeks of your first employment date in the Netherlands. If you miss this window, you lose the opportunity for that employment.

Once approved, the ruling lasts up to 5 years from the date it is granted. After that, you lose the exemption—unless you renew it by securing a new employment relationship (which is rare).

For BV owners, this means:

• Set up your BV before you start invoicing, so your DGA salary can be dated correctly
• Apply for the ruling immediately after the first salary is paid
• Plan for the ruling to end in 5 years—by then, your business may be large enough that you don't need it, or you may have restructured

Comparing the options: eenmanszaak vs BV for expats#

A practical roadmap for incoming expats#

If you're arriving in the Netherlands and want to freelance:

1. First 3–6 months: Negotiate an employment contract with at least one client (part-time OK) to secure the 30% ruling. Get the ruling approved before your first 5-year clock starts.
2. Parallel route: Set up an eenmanszaak or a BV, depending on your expected income.
3. After ruling is secured: If you've hit €5,000+/month revenue and want the ruling to stick, incorporate a BV and transition your salary structure. If revenue is lower, stay as eenmanszaak and apply the 30% ruling to any part-time employment income only.
4. Year 5: Plan ahead—the ruling expires. Decide if you want to apply for renewal (unlikely if self-employed) or let it lapse and accept full taxation.

Read the full guides on choosing between eenmanszaak and BV, when to switch to a BV, and the income tax return for the self-employed for deeper dives into each path.

Frequently asked questions#

The 30% ruling is a genuine tax break for skilled migrants—but it's only available if you structure it correctly. If you're an expat planning to freelance in the Netherlands, your first move should be to secure an employment relationship (even part-time) to claim the ruling early. Then decide whether a BV makes economic sense for your revenue level. That's the foundation ZZP Belasting helps you build: a tax-efficient business structure from day one.

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