Definition of expatriate employee

In principle, we understand expatriate employees as employees who have come to the Netherlands to work. These also include inhabitants of the BES Islands, Aruba, Curaçao and Sint Maarten. However, a limitation is applicable to employees originating from the regions along the Dutch borders.

Limitation for employees originating from the regions along the Dutch borders

The Expat Scheme (30% facility) is available solely for employees who have lived at a distance of more than 150 kilometres from the Dutch border for more than 16 months in the 24-month period prior to their first working day in the Netherlands. Consequently, the Expat Scheme is not available for employees from Belgium or Luxembourg, or for employees from Northern France, large parts of Germany and a small part of the United Kingdom.

Exceptions to the limitation

The limitation is not applicable to employees who originate from regions along the Dutch borders and who meet the following 3 conditions:

• The employees have worked previously in the Netherlands and, following a stay outside the Netherlands, have returned to work in the Netherlands on a date on which the earlier period of work in the Netherlands began no more than 8 years ago.
• The employees have lived at a distance of more than 150 kilometres from the Dutch border for more than 16 months in the 24-month period prior to the first working day in the Netherlands.
• During this prior working period, the employees were subject to a decision for the Expat Scheme. If there was no decision, the employees may argue convincingly that they met the conditions for the Expat Scheme applicable at that time.

An exception is also applicable to employees with a PhD who were awarded their degree within one year prior to coming to work for you in the Netherlands. When a PhD graduate meets the following 2 conditions then we will deem the graduate to be an expatriate employee:

• During the period of the studies for the PhD and the period between the award of the degree and the commencement of employment in the Netherlands the employee lived in the Netherlands or within a radius of 150 kilometres from the Dutch border.
• The employee lived at a distance of more than 150 kilometres from the Dutch border for more than 16 months in the 24 months prior to the studies for the PhD in the Netherlands.

In the following situations, we consider a PhD graduate to be an expatriate employee as well:

• The employee performed doctoral research in the Netherlands and was also employed in the Netherlands apart from his doctoral research.
• Before the employee obtained their degree, you gave the employee an employment contract. Your condition for hiring him was, however, that he obtained his degree.

In these cases, the Expat Scheme will only commence once the employee has been awarded their degree.