30% Tax facility

Working in Europe | Taxation/salaries | Netherlands

The Netherlands’ tax authority allows employers to provide international employees in the Netherlands a tax-free compensation for the extra expenses incurred by working outside their home country (the so-called extraterritorial costs). This can be done by reimbursing actual extraterritorial costs. The Tax Office has a list of expenses that are eligible as extraterritorial costs. It is also possible to opt for a flat-rate method through the ‘30% tax facility’. This means that a fixed allowance of up to 30% of an expatriate’s salary can be paid tax-free.

In short, the tax facility means that 30% of their salary is paid tax-free. It aims to make the Netherlands financially attractive as a place to live for talented foreign employees.

Eligibility

  • You are eligible for the 30% facility, if you meet a number of conditions:
    • You were recruited outside of the Netherlands or seconded from a country other than the Netherlands to work in the Netherlands.
    • You have an employment relationship
    • You have specific expertise that is not or is only barely available on the Dutch employment market.
    • In the 24 months prior to your first day of work in the Netherlands you lived more than 150 kilometres from the Dutch border. However, there are certain exceptions to the 24-month term and for people with a PhD.

How to apply?

If you would like to apply for the 30% facility, you should submit a joint request with your employer, to the tax authorities. The Dutch tax authorities provide more information on this facility.