Content of the Expat Scheme

Pursuant to the Expat Scheme (30% facility) you may untaxed reimburse specific employees, without furnishing additional proof, a maximum of 30% of the wages inclusive of the reimbursement (in the form of a specific exemption, see Allowances, benefits in kind and provisions) for the extraterritorial costs. Instead, you may also give no more than 30/70 of the wages excluding the reimbursement as untaxed reimbursement. You will then need to take account of the expertise requirement. Here, wages are considered to be wages from present employment for which you file payroll tax returns.

When you issue reimbursements or provisions in excess of the maximum amount then the excess is wages for the purposes of payroll taxes.

When the actual costs reasonably incurred are in excess of 30/70 of the wages then you may also opt to issue the employee a tax free reimbursement of the actual costs. However, you will then need to furnish proof for the costs. Since 2023, you must choose annually whether to apply the Expat Scheme or reimburse actual expenses tax-free.

Maximum tax-free reimbursement in 2025

In 2025 the tax-free reimbursement is a maximum of €73,800. Your employee receives the maximum tax-free reimbursement on a salary of €246,000 or higher, and if they make use of Expat Scheme for the entire year. If your employee only makes use of the Expat Scheme for part of the year, the maximum reimbursement is lower. Calculate the maximum reimbursement time proportional over the part of the year your employee makes use of the Expat Scheme.

For some employees, the maximum tax-free reimbursement enters into effect from 1 January 2026. This transition right applies under the following conditions:

• You applied the Expat Scheme for your employee over the last wage period of 2023.
• Your employee did not again become an incoming employee after a break after 31 December 2023.
  For the purpose of this transition right, there is no break if your employee finds a new employer within 3 months and both want to apply the Expat Scheme for the remaining duration.

Other tax-free reimbursements and provisions

When you make use of the Expat Scheme you may also issue the employee the following tax free reimbursements or provisions (specific exemption):

• the costs incurred in the removal, temporary storage and transfer of the household effects
• the costs incurred in your employee's visit to the Netherlands to become acquainted with the company
• the school fees for an international school or international department of a regular school
  This is an issue when:
  • the education programme at the relevant school or school department is based on a foreign system
  • the school or department is intended especially for children of seconded employees

More information about the Expat Scheme can be obtained by calling the Tax information line for non-resident tax issues.

Payroll records and payroll tax returns

Your administrative obligations for employees who make use of the Expat Scheme are identical to those for your other employees. However, when you apply the Expat Scheme you will need to take account of the reimbursements or provisions you have paid or provided alongside the Expat Scheme as you are not permitted to reimburse or provide the actual extraterritorial costs incurred alongside the application of the Expat Scheme.