The Dutch Expat Scheme (30% facility)
Treat the Expat Scheme as a joint employer-and-employee tax process, not as a guaranteed percentage or a promise attached to a job offer.
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What the scheme is
The Dutch Tax Administration calls this the Expat Scheme, while many employers and older pages call it the 30% facility or 30% ruling. It can allow an employer to reimburse qualifying extraterritorial costs without tax, either on the basis of actual costs or through the scheme’s permitted method.
The name does not mean every eligible employee receives exactly 30% of salary tax-free. The employment agreement, salary, statutory conditions and formal decision all matter. The employer is not automatically required to offer the maximum possible allowance.
Use the Tax Administration’s current Expat Scheme conditions for the year and start date that apply to you. Thresholds and transition rules change, so this page does not repeat them.
Questions for the employer before signing
Ask how the offer is structured rather than focusing on a headline net-salary estimate:
- Will the employer apply for the scheme with you?
- Is the quoted salary before or after any allowance calculation?
- What happens to gross pay, pensionable pay and benefits if the decision is positive?
- How will payroll operate while an application is pending?
- Who bears the effect if the application is refused or starts later than expected?
- Does the contract explain what happens when the facility ends?
Request a written illustration from payroll and, for material financial decisions, consider independent tax advice. A calculator or recruiter estimate is not a Tax Administration decision.
Eligibility is more than a job title
The official conditions include paid employment, expertise tests, recruitment circumstances and a formal decision. Special rules can apply to some researchers, doctors in specialist training and younger employees with a qualifying academic master’s degree. Distance from the Dutch border during the relevant prior period can also matter.
Because these details are factual and date-sensitive, use the official page to test them. Do not infer eligibility from being called an “expat,” holding a highly skilled migrant residence permit or working for an international company.
Applying
The employee and employer normally complete the applicable request together. The Tax Administration provides the current English application forms. Check that you have selected the form for the relevant year and read its instructions before signing.
Keep a copy of the submitted package and decision. If you change employers, take advice promptly; continuity is not something to assume, and deadlines may apply.
Relocation costs and accommodation
Some costs connected with moving or temporary double housing may be relevant within the official definition of extraterritorial costs, but treatment depends on the facts and payroll method. Keep invoices and ask payroll how the employer classifies a reimbursement. Do not choose a hotel or lease because an agent says it is “tax deductible.”
A sensible review point
Revisit the arrangement when the decision arrives, when pay changes, before changing employer, and before the scheme’s end date. Check how each event affects take-home pay and benefits. This guide is general preparation, not individual tax advice.