Substantial tax relief
(30% tax free reimbursement)

The most significant benefit is that the full Dutch
taxable salary is reduced to a 70% taxable
salary (i.e. 30% of agreed wage is exempt from
payroll tax and personal income tax).

The Tax and Customs Administration offers a
maximum effective tax rate of 36,4%
(30%*100/70 of the gross salary) so that expats
can cover their extraterritorial expenses. These
expenses are costs that (nearly) all expatriates
have to cover when working away from their
homeland and may include:

› Costs of water, gas, electricity etc (if prices in
the Netherlands are higher than in the country of
origin).
› Application costs for residence permit, visa,
driving license etc.
› Hotel expenses (if expats still live in their
homeland).
› Various housing costs (especially in the initial
stage).
› Traveling expenses to the expat’s country and/
or telephone calls to his/her country of origin.
› Dutch courses costs for the expat and his/her
family.

Other tax reliefs

› Additional tax-free reimbursement for certain
expenses (i.e. international school fees for
expatriates' children).

› Possible exemption from the Dutch net-wealth
taxation (i.e. partial non-resident taxpayers).
Investments in real estate are not included
though.

› Tax-free income from interest in any non-Dutch
entity.

› All other income tax deductions still remain
applicable.

› Entrepreneurial expats can also use this ruling
if employed by their corporation (Ltd or Dutch
BV). Besides, they can take advantage of this
compensation to attract more specialists from
abroad.

› Exchange foreign driving license into a Dutch
one without taking the (otherwise required)
driving test. This applies for family members as
well.


Related articles
› Expat tax in the Netherlands
› Dutch tax decree on international short term
assignments