If you are working in the Netherlands as an expat or wish to hire an international professional from abroad, the expat tax scheme is an important tax benefit to consider. This scheme can significantly increase your net income. However, there are clear salary standards, conditions, and deadlines associated with this 30% rule.

In this article, you’ll learn how the expat tax scheme works, what changes are coming, what the 2026 expat tax scheme conditions are, and how to correctly apply for the scheme with the Tax and Customs Administration. This way, you can be sure to benefit from this special scheme.

What is the expat scheme in the Netherlands?

The expat scheme is also known as the 30% scheme and is a tax facility in the Netherlands specifically for international employees relocating to the Netherlands from outside the EU. By applying this scheme, an employer may pay up to 30% of the gross salary tax-free. The scheme exists as compensation for so-called extraterritorial costs.

Extraterritorial costs arise because someone is working temporarily in another country. These include travel expenses, higher housing costs, and possibly costs associated with maintaining two households. The term “30 percent scheme” is still commonly used, but the official name is the expat scheme. Expats should note that the percentage will be reduced to 27% starting in 2027. Consequently, the term will be referred to as the expat scheme in the future.

Conditions of the Dutch expat scheme

There are several conditions attached to the expat scheme. To qualify for the Dutch expat scheme, the international professional must meet these requirements. Key criteria include the 150-kilometer distance requirement, specific expertise, and a written agreement. Below, we will outline all the conditions.

Recruited from abroad

It is essential that the expat was specifically recruited from abroad. A transfer from abroad is also a possibility.

150 km distance requirement

In the 24 months prior to the first day of work, expats must have lived at least 16 months at a distance of more than 150 kilometers from the Dutch border. Due to these conditions, residents of countries such as Belgium and Germany often do not qualify for the expat scheme.

Specific expertise

Expats must possess skills or specific knowledge that are scarce in the Dutch labor market. This is usually demonstrated through the expat’s salary level, experience, and qualifications.

Employment

It is mandatory to be employed by a Dutch employer, also known as a withholding agent. Self-employed individuals (freelancers) are therefore not directly eligible for the expat scheme. However, there are options to qualify for the scheme through one’s own private limited company (BV) as a Director-Major Shareholder (abbreviated as DGA).

Written Agreement

Finally, the employer and employee must sign a written agreement stating that the expat scheme applies to the international professional’s salary.

Applying these conditions of the expat scheme should generally lead to a positive outcome. Legally speaking, this must be correct in order to apply the tax benefit. However, the salary standards must be also taken into account to ultimately qualify for this specific scheme.

Salary Standards Netherlands 2026

To meet the 2026 expat scheme salary standard, the expat’s taxable income must reach a minimum. A specific standard has been established for this. In 2026, the general standard (for individuals aged 30 and older) is that the taxable income is €48,013 per year. Converted, this amounts to a gross salary of €68,590 per year. There is also a reduced standard for professionals under 30 years of age who hold a master’s degree. Their taxable salary is €36,497 per year, which amounts to approximately €52,139 gross salary.

There are exceptions to these salary standards regarding the 2026 expat regulation. These exceptions apply to scientific researchers and doctors in training, for whom no minimum salary applies. However, there is a WNT threshold in 2026 that must be taken into account. WNT stands for the Top Income Standardization Act, under which the maximum salary to which the rule applies is €262,000. Anything above this amount is fully taxable.

An important point to note is that the established minimum salary must be met each year. If the expat’s salary falls below the standard in a given year, the scheme is retroactively revoked as of January 1 of that year and ultimately terminated permanently.

Benefits of the expat scheme in The Netherlands

The expat scheme offers both practical and financial benefits. Net income is higher, as tax is paid on only 70% of the salary. There is also a reimbursement for international school fees, which is paid in addition to the 30% allowance. Furthermore, expats can exchange their foreign driver’s license for a Dutch driver’s license without taking an exam.

The scheme has a maximum duration of 5 years per employee. Suppose an expat has a gross salary of €80,000. Under the expat scheme, €24,000 (30% of the total gross salary) is tax-free.

Tax is therefore only paid on the €56,000. This can result in a net benefit of several thousand euros per year, in addition to the benefits mentioned above.

Changes Starting in 2027

Starting in 2027, the Dutch expat scheme will look slightly different. The most significant changes are that the percentage will decrease from 30% to 27%. This applies to schemes that began on or after January 1, 2024. There is a transitional provision: employees hired before 2024 will retain the 30% scheme for the duration of their contract.

It is important to note that partial foreign tax liability will be phased out starting in 2025. From that year onward, there will no longer be any benefit in Box 2 and Box 3. The transitional arrangement for this specific tax liability runs through 2026.

Furthermore, the general salary threshold will rise to €50,436 in taxable income in 2027. Previously, the government planned to implement a 30-20-10% phase-out of the expat scheme, but following widespread criticism from the business community, this plan was reversed.

How do you apply for the expat scheme?

Applying for the expat scheme with the Tax and Customs Administration is done through a joint application. The first step is for the employer and the employee to fill out the form together. This document is then submitted to the Tax and Customs Administration, which will issue a decision within 8 weeks.

It is essential to submit the application within 4 months of the start date so that the scheme applies from day 1. If you are late, the scheme will only start after approval, and you will miss out on the financial benefit.

In addition to submitting the document too late, sometimes insufficient evidence has been gathered regarding the 150 km distance. Also, the salary is sometimes calculated incorrectly, or the documentation is incomplete. This can result in the expat scheme not being granted. That is why most expats and entrepreneurs hire a consultant.

Expat Scheme for Entrepreneurs with Their Own BV in the Netherlands

Entrepreneurs cannot directly utilize the expat scheme as self-employed individuals, but foreign entrepreneurs with a Dutch BV (Besloten Vennootschap) may qualify if they work as a Director-Major Shareholder (DGA).

The conditions for applying for the Dutch expat scheme for entrepreneurs with their own BV remain the same: the distance requirement and salary threshold must be met, and the individual must be employed by the BV.

A Dutch BV makes it possible to establish a formal employer and set up payroll correctly, ensuring that all tax requirements are met. This makes the BV a strategic tool for international entrepreneurs. Beyond Consultancy can support entrepreneurs in this process.

How Beyond Consultancy Can Help You

The expat scheme is available if the employee meets all conditions, there is a proper employer structure in place, and the application is submitted correctly and on time.

Beyond Consultancy supports expats and employers throughout this entire process and ensures proper implementation.

We can assist you with, among other things:

Payroll services and IND-approved sponsorship
Administrative setup
Compliance and payroll processing
Establishment of a Dutch BV
Business address and accounting
Opening a Dutch business bank account
Setting up the structure for a DGA
Registrations with the Chamber of Commerce
Business immigration
Coordination with the Highly Skilled Migrant Scheme.

Our approach ensures that all components are aligned, so you don’t miss out on any benefits.

Contact us for professional support

Frequently Asked Questions about the Expat Scheme

What is the difference between the expat scheme and the 30% scheme?

There is no difference between the expat scheme and the 30% scheme. These are two names for the same scheme in 2026. Please note that this percentage will decrease to 27% in 2027. From that point on, the term “expat scheme” will be used more frequently.

How long does the expat scheme apply?

The expat scheme applies for a maximum period of 5 years per employee. If the employee held a Dutch residence or work permit prior to this period, the maximum duration may be shorter.

Can a self-employed person apply for the expat scheme?

A self-employed person cannot directly apply for the expat scheme. However, this is possible if the foreign entrepreneur works as a director and major shareholder (DGA) of his or her own Dutch BV.

What if my salary falls below the threshold?

If your salary falls below the threshold for the expat scheme, the scheme will be terminated retroactively as of January 1 of that year. It will then eventually expire permanently.

Can I combine the expat scheme with the highly skilled migrant scheme?

Yes, the expat scheme can be combined with the highly skilled migrant scheme. Many highly skilled migrants qualify for both schemes. The immigration permit and the tax schemes are separate processes.

What will change in 2027?

In 2027, the percentage under the expat scheme will decrease from 30% to 27% for employees whose scheme began in 2024 or later. At the same time, the salary threshold will increase.

Netherlands Expat Tax Scheme: The 30% Rule Explained