Ultimate Guide to the 30% Ruling and Your Mortgage
If you want to understand how a 30% ruling mortgage works, you’re in the right place. This guide explains how the Dutch 30% tax benefit affects your income, borrowing power, and chances of buying a home in the Netherlands.
Many expats assume the tax benefit only affects salary. However, it also plays a major role in mortgage calculations. Because of that, knowing the rules early can save you time, stress, and money.
This guide is written for expats who want clarity, confidence, and action. Most importantly, it reflects how Dutch lenders actually work today.
What Is the 30% Ruling?
The 30% ruling is a Dutch tax facility for skilled migrants. It allows employers to pay 30% of gross salary tax-free. As a result, net income rises significantly.
Why the 30% Ruling Exists
The ruling compensates expats for extra costs of living abroad. These include housing, travel, and relocation expenses. Because of this goal, the benefit is temporary but powerful.
Who Qualifies for the 30% Ruling?
To qualify, you must meet strict criteria:
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You are recruited from abroad
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You earn above the minimum salary threshold
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Your employer applies for the ruling
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You have specific expertise that is scarce in the Dutch market
If approved, the ruling usually lasts up to five years.
How the 30% Ruling Mortgage Works
A 30% ruling mortgage uses your tax-free income to calculate borrowing capacity. However, not every lender treats it the same way.
How Lenders View the Tax Benefit
Some banks count the full net income. Others apply a discount. A few ignore the ruling entirely. Therefore, lender selection matters a lot.
Because policies differ, independent advice makes a real difference. At Expat Mortgage Platform, lenders are compared based on your exact situation.
Net Income vs Gross Income
Dutch mortgages are based on sustainable income. Lenders ask one key question:
Will this income remain stable in the future?
Since the ruling is temporary, lenders apply different risk models. Still, many allow you to borrow more than without the ruling.
How the 30% Ruling Affects Mortgage Eligibility
Understanding how 30% ruling affects mortgage eligibility helps you avoid surprises later.
Duration Matters
The remaining years of your ruling matter. If you have four years left, lenders are more flexible. With one year left, rules become stricter.
Employment Contract Type
Permanent contracts help. Fixed-term contracts still work, but conditions apply. Some lenders accept employer statements to reduce risk.
Partner Income
Buying with a partner often increases eligibility. Even if one partner has no ruling, combined income improves options.
You can read more about this in our other guides.
Tax Benefit Expat Mortgage: What You Can Really Borrow
A tax benefit expat mortgage often leads to higher borrowing power. Still, expectations must stay realistic.
Example Scenario
An expat earns €80,000 gross with the ruling. Net income rises sharply. As a result, monthly affordability improves. In many cases, borrowing power increases by €50,000–€100,000.
Common Misconceptions
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The ruling guarantees approval
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All banks accept it equally
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It replaces savings
Instead, think of it as a boost, not a guarantee.
Risks to Consider Before Using the 30% Ruling
Every advantage has limits. Smart buyers plan ahead.
What Happens When the Ruling Ends?
When the ruling expires, net income drops. Lenders assess whether you can still afford payments.
Fixed vs Variable Interest
Choosing a longer fixed interest period reduces risk. Many expats choose 10–20 years for stability.
Financial Buffers
Savings matter. Even with a strong 30% ruling mortgage, lenders expect financial resilience.
Step-by-Step: Using the 30% Ruling to Buy a Home
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Confirm ruling duration
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Calculate borrowing power with and without the ruling
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Compare lenders that accept expat income
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Choose a safe mortgage structure
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Start house hunting with certainty
You can start directly via the free, non-binding consultation.
Frequently Asked Questions (FAQ)
Can I get a mortgage if my 30% ruling ends soon?
Yes, but options shrink. Early advice is key.
Do all Dutch banks accept the 30% ruling?
No. Policies vary widely.
Is a 30% ruling mortgage risky?
Not if structured correctly and stress-tested.
Can first-time buyers use the ruling?
Absolutely. Many do.
Why Expats Choose Expat Mortgage Platform
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100% independent advice
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Specialized in expat mortgages
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Office in the Netherlands
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Free first consultation
Our advisors understand both tax rules and lender policies. That combination matters.
Ready to Use Your 30% Ruling Mortgage Advantage?
Your tax benefit can unlock homeownership faster. However, only if you use it wisely.
Book your free consultation now and get clarity on your 30% ruling mortgage: buy with confidence in the Netherlands.
