Moving to another country is a costly adventure. These costs are considered as extraterritorial costs by the Dutch government.
The following cases are covered:
- Extra costs for living in the Netherlands.
- Costs for an orientation trip to the Netherlands for a house or school.
- Application and amendment costs for official personal papers, such as residence permits, visa and driving licenses.
- Costs for medical examinations and vaccinations to reside in the Netherlands.
- (Double) housing costs.
- Storage costs in the native country.
- Traveling costs to the native country, for family visits.
- Extra costs to have an accountant to file income taxes and tax returns.
- Training costs to learn Dutch, including those for your family members.
- Non-business-related telephone costs to the native country.
The employer may decide to compensate you for the costs mentioned above. To avoid complicated administration issues the 30% facility (also known as the 30% ruling) can be used.
What is the 30% facility?
The 30% facility (or 30% ruling) gives the employer the possibility to grant 30% of the salary tax-free. These costs do not have to be substantiated. The application of the 30% facility will result in a higher net income.
The following conditions apply for the 30% facility:
- There must be an employment contract.
- The employer has recruited the employee from a different country, or the employee has been sent from another country to the Dutch branch.
- The employee has, in the two years before the first working day in the Netherlands, lived for more than 16 months outside the Netherlands, at more than 150 km from the Dutch border.
- The employee has specific expertise.
- The Tax and Customs Administration has issued a decision which states that you may apply the 30% facility.
- During the term of the 30% facility, an employee must receive an annual tax salary that at least corresponds to the established salary standard. This standard applies to both full-time and part-time employment. Upon commencement and termination within a calendar year, the 30% facility is calculated pro-rata.
Did you know:
- The maximum duration to benefit from the 30% ruling is five years?
- There are possibilities to honor the 30% facility for part-time employment?
- Schooling fees for children from employees can be issued as free reimbursement, under special conditions, next to the 30% facility?
- The 30% facility for employees and their families arranges that a foreign driving license can be swapped with a Dutch driving license.
- The 30% facility can be used together with our contracting solutions?
Do you need help or more information? Please do not hesitate to contact us. We will happily answer all your questions regarding the 30% ruling. You can contact us by phone on +31 20 820 15 60 or by email via email@example.com.