Oil & Gas and IT contractors are in prime position to take advantage of the 30% ruling in the Netherlands. Application for the tax break, offered by the Dutch government to expat contractors possessing specialist skills, should be considered as an essential part of financial planning.
Partial Non-Resident Status
When an expat relocates for work purposes to the Netherlands, they are considered as Dutch tax resident. However, under the 30% ruling they may opt to be treated as a partial non-resident for Dutch income tax purposes for the duration of their contract or posting. The choice of partial non-resident status can be revised each year by the expat.
With this status contractors are exempt from Dutch taxation on investments, other than those in Dutch real estate. This means that expats with offshore pensions or investments are not taxable on any gains declared to the Dutch revenue.