Extraterritorial costs and the Expat Scheme
Employees who come from another state to work in the Netherlands (expats) often receive an extra reimbursement for the extra costs incurred for their stay away from their country of origin, what are referred to as the extraterritorial costs. You can opt either for the reimbursement of the actual extraterritorial costs incurred by the employee or, subject to conditions, the application of the Expat Scheme (30% facility).
Annual choice: Expat Scheme or reimbursing actual costs
Are you eligible to apply the Expat Scheme? Starting from 1 January 2023, you must make a yearly choice between applying the Expat Scheme or reimbursing the actual extraterritorial costs. You make this choice in the first payroll period of the calendar year in which you reimburse extraterritorial costs. Your choice applies for the entire calendar year as long as the Expat Scheme is in effect in that year.
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