How the 30% Ruling Boosts Your Mortgage Options as an Expat in the Netherlands
European Insurance & Mortgage supports 3,500 expats annually with insurance and mortgages.With our 30% ruling expertise, expats gain more borrowing capacity and tailored, specialist guidance.
What is the 30% ruling?
The 30% ruling is a tax facility for expats in the Netherlands. If you qualify, 30% of your gross salary can be received tax-free, giving you more net income to spend.
Effect on the mortgage
When determining your maximum mortgage, the bank looks at your gross annual income (based on your payslip or employer’s statement).
👉 Thanks to the 30% ruling, the mortgage lender may increase your gross income with the tax-free 30%. This is also called the “gross-gross income.”
Example:
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Normal salary: €70,000 gross per year
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With the 30% ruling, the bank calculates: €70,000 ÷ 70% = €100,000 assessment income
This means your borrowing capacity is calculated as if you earn €100,000, while in reality you receive €70,000 of which 30% is tax-free.
Important to know
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Not all banks apply the same rules: some accept the increase, others are more cautious.
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The 30% ruling applies for a maximum of 5 years (previously 8 years). Banks consider whether your ruling will last for the full mortgage term. If it is due to expire soon, they often calculate more conservatively.
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Once the ruling ends, your net disposable income can drop significantly → which is a risk for you as a homeowner.
In practice
With the 30% ruling, you can often borrow 15–25% more than without it.
A mortgage advisor experienced with expats can calculate exactly how much extra you can borrow with different banks.
