Expats in the Netherlands

The Dutch government has long recognized the importance of expats moving to the Netherlands. They are often highly skilled migrants who bring knowledge to the Netherlands and thus raise the (already very high) level of the average Dutch worker. In addition, expats often contribute a great deal to the treasury in the Netherlands by paying tax.

The Dutch government has also recognised that expats often have higher expenses than domestic employees, the children often have to go to expensive foreign-language schools (not least because many public schools have waiting lists), there are sometimes (temporary) double housing costs and there are often costs for travel to and from the family in the country of origin.

Emigration expenses

To encourage highly skilled migrants to move to the Netherlands, the Dutch government has decided that employers will reimburse the extraterritorial costs of these incoming employees tax-free. These include the additional costs for living, if prices in the Netherlands are higher than in the country of origin. Costs of an introductory trip to the Netherlands with the family, fees for applying for official documents, double accommodation costs, medical examination fees, first accommodation costs, costs for storage of household effects, fees for completing the first income tax return, costs for Dutch course, telephone call fees and fees for the application for exemption from social insurance.

The employer can choose not to reimburse the actual expenses, but to make use of the 30% ruling without providing proof of any expenses. In this scheme, 30 / 70th of the wage is exempt from Wage and Income Tax. In addition, the relocation costs, costs for an introductory visit to the country and school fees can also be reimbursed untaxed.

The employer and the employee

The employer has to submit a request for the application of this scheme. The recruited employee must have been recruited outside of the Netherlands or sent to the Netherlands from abroad to work (note, the job must be obtained before the employee moves to the Netherlands). 

The employee has to be employed and have specific expertise that’s almost impossible to find on the Dutch labor market (the employer needs to demonstrate this within the application, for example by having posted a vacancy).  Another requirement for the employee is that in the two years before the first working day in the Netherlands, the employee has to have lived outside the Netherlands for more than 16 months, at a distance of at least 150 km from the Dutch border.

Finally, an employee with a 30% ruling can choose to be regarded as a non-resident taxpayer for the purpose of levying income tax on his assets. As a result, a much lower income is often included in taxation.

The right employee, thanks to the 30% ruling

The 30% scheme therefore is a very particularly advantageous scheme if you recruit employees from abroad. It can make the difference between being able to bind the right employee to your organization or not. It is crucial to submit appropriate documentation when applying for this scheme, as the request can only be made once.

Taxably has a lot of experience with the application of these requests and is happy to advise and assist you. Send us a message on Facebook, or fill out our contact form if you would like more information, a provisional quotation or if you have a specific question!