[Netherlands] Government reduces 30% expat tax ruling to 27%

In the Netherlands, the government has confirmed changes to its Expat Scheme, under which eligible foreign employees working temporarily in the Netherlands can receive a tax-free allowance to offset the additional costs of living and working abroad, DLA Piper reports.

From January 1, 2027, the tax-free allowance available under the Expat Scheme will be reduced from 30 per cent to 27 per cent.

Transitional measures will reportedly determine whether affected employees can continue to benefit from the current 30 per cent rate.

According to the government, employees already using the scheme by the end of 2023 will continue to benefit from the 30 per cent allowance under the existing rules.

The tax benefit remains capped at annual remuneration of €262,000. The cap applies to all beneficiaries from January 1, 2026.

Source: DLA Piper

In the Netherlands, the government has confirmed changes to its Expat Scheme, under which eligible foreign employees working temporarily in the Netherlands can receive a tax-free allowance to offset the additional costs of living and working abroad, DLA Piper reports.

From January 1, 2027, the tax-free allowance available under the Expat Scheme will be reduced from 30 per cent to 27 per cent.

Transitional measures will reportedly determine whether affected employees can continue to benefit from the current 30 per cent rate.

According to the government, employees already using the scheme by the end of 2023 will continue to benefit from the 30 per cent allowance under the existing rules.

The tax benefit remains capped at annual remuneration of €262,000. The cap applies to all beneficiaries from January 1, 2026.

Source: DLA Piper