Apply in time for the 30 percent facility for new foreign employees
Employees who come to work in the Netherlands from abroad sometimes incur additional costs. We call these extraterritorial costs. These costs may include costs for (first) accommodation, visa application and/or medical examinations. As employer, you may provide a tax-free reimbursement for extraterritorial costs demonstrably incurred by your employee. The employee provides you with the invoices for the costs incurred. You pay the employee a reimbursement for these costs and keep the invoices in your records as evidence.
Instead of reimbursing the actual extraterritorial costs, you may apply the 30% facility subject to certain conditions. In that case, you will pay out 30% of the employee's wages (including reimbursement) tax-free as reimbursement for extraterritorial costs. You do not need to prove that the employee actually incurred these costs. You may only apply the 30% facility under the following strict and cumulative conditions.
- The employee was recruited from abroad and works for you under an employment contract.
- The employee has lived outside the Netherlands for more than sixteen months during the two years prior to the first working day in the Netherlands. Moreover, his place of residence was at a distance of more than one hundred and fifty kilometres from the Dutch border.
- The employee has specific expertise that is unavailable or difficult to find on the Dutch labour market. This specific expertise is assumed if the employee has a minimum salary in the Netherlands of € 37,743 (in 2019 and excluding the tax-free reimbursement). More flexible criteria apply for employees younger than thirty years with a master's degree and scientific researchers.
- You have a valid decision from the Tax and Customs Administration to apply the 30% facility. You must have applied for this decision within four months of commencement of work in the Netherlands.
The 30% facility has a maximum term of five years. This applies to decisions requested as from 1 January 2019.