Extraterritorial costs and the Expat Scheme
Employees who come from another country to work in the Netherlands (expats) often incur extra costs for living outside their country of origin. These extra costs are called extraterritorial costs. You can choose to reimburse the actual extraterritorial costs or, under conditions, apply the Expat Scheme (30% facility).
Annual choice: Expat Scheme or reimbursing actual costs
Are you allowed to apply the Expat Scheme? Since 1 January 2023, you must choose each year whether you apply the Expat Scheme or reimburse the actual extraterritorial costs. You make this choice in the 1st wage period of the calendar year in which you reimburse extraterritorial costs. Your choice applies for the entire calendar year, as long as the decision for the Expat Scheme is valid in that year.
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