Understanding how the 30% ruling affects your mortgage is one of the most practical things an expat can do before entering the Dutch housing market.
The ruling changes your net income, and for some lenders it also changes how much you are allowed to borrow.
This guide explains how it works, where lenders differ, and what the upcoming 2027 changes mean for your planning.
What the 30% Ruling Is
The 30% ruling (officially the expatregeling) is a Dutch tax benefit for qualifying internationally recruited employees. It allows your employer to pay up to 30% of your gross salary as a tax-free allowance, for a maximum of five years. In practice, this means you pay income tax on only 70% of your earnings, which significantly increases your monthly net pay.
To qualify in 2026 you must have been recruited from abroad, lived more than 150 km from the Dutch border for at least 16 of the 24 months before your start date, and earn above the salary threshold of 46,660 euros gross per year (or 35,468 euros if you are under 30 with a Dutch-recognised master’s degree). The ruling is applied jointly by you and your employer; it is not automatic.
How the 30% Ruling Affects Your Mortgage Directly
The key question is which salary a lender uses to calculate how much you can borrow. Dutch mortgage capacity is typically based on four to five times gross annual income, so the difference matters.
Most Dutch lenders base their affordability test on your full gross salary, which means the 30% ruling does not change your maximum mortgage. However, some lenders test on your taxable income (70% of gross) rather than your full gross. If your lender falls into this group, your borrowing capacity may be lower than expected.
This is one of the most important questions to raise with a mortgage advisor early: ask specifically how the 30% ruling will be treated in your affordability calculation.
The Mortgage Interest Deduction Still Applies
Holding the 30% ruling does not affect your right to deduct mortgage interest on your primary residence. The mortgage interest deduction (hypotheekrenteaftrek) falls under Box 1 of the Dutch tax system, which covers employment income and home ownership. The 30% ruling is also a Box 1 benefit. Both stack, which means you benefit from both at the same time.
In 2026 the maximum deduction rate is capped at approximately 36.97%, in line with the lower income tax bracket. High earners cannot deduct at the higher tax rate. This rule applies regardless of whether you hold the 30% ruling.
What Changes When the Ruling Expires
The 30% ruling lasts a maximum of five years. When it ends, your taxable income rises, and your monthly net pay falls. If you bought a home based on an affordability calculation that used your full gross salary, your mortgage payments remain the same but your take-home drops. It is worth building this transition into your budget before buying, not after.
A mortgage advisor can model your net income with and without the ruling, so you can be confident the payments are manageable on your base salary alone.
What the 2027 Changes Mean
From 1 January 2027, the ruling percentage drops from 30% to 27% for all new rulings. Existing rulings granted before 2027 keep the 30% rate for their full five-year term. If you are starting a new role in the Netherlands in late 2026, locking in a start date before 1 January 2027 means your ruling will be at 30% for the full duration.
The earlier 30/20/10% phasing introduced in 2024 was reversed and is no longer in effect. The ruling is flat at 30% for the full five years for all current holders.
FAQ – The 30% Ruling and Your Mortgage
Does the 30% ruling increase how much I can borrow?
It depends on the lender. Most Dutch lenders use your full gross salary, so the ruling does not change your maximum mortgage. Some lenders test on your taxable income, which may reduce what you can borrow. Always check with your advisor.
Can I still deduct mortgage interest if I have the 30% ruling?
Yes. The mortgage interest deduction applies to your primary residence under Box 1 and is not affected by the 30% ruling.
What happens to my mortgage if the 30% ruling ends?
Your mortgage payments stay the same, but your net income falls. It is important to budget based on your salary without the ruling to make sure payments remain comfortable after the five-year period.
Will the 2027 change affect my existing 30% ruling?
No. Rulings granted before 1 January 2027 keep the 30% rate for their full five-year term. The 27% rate applies only to new rulings from 2027 onwards.
