Tax rules that you can use as an expat

In the Netherlands there is a regulation that as an expat you will receive 30% tax reduction of your income because as an expat you will have extra costs when you come to live here.

We will provide you with all the information, but your employer will also discuss with you whether this regulation applies to you. This regulation is important for you.

See calculation example below:

  No 30% regulation With 30% regulation
Income example € 90.000,00 € 90.000,00
30% deduction   € 27.000,00
Wages before income tax € 90.000,00 € 63.000,00
Tax € 33.700,00 € 19.230,00
Your net income € 56.300,00 € 70.770,00
Benefit € 14.470,00  
Tax office

* No rights can be derived from this calculation

tax benefits

Example of what the tax benefits mean for you

Tax benefit 30% regulation
€ 14470.00
This means with an interest of, for example, 4.2% that you can then pay the interest on an amount of
€ 344.523,81
If, for example, you still receive a 20% refund via income tax, this amount will amount to
€ 413.428,57

This is the amount that you are able to pay, in this case, without too much pressure on your monthly budget. You also pay the repayment, but this amount is deducted from your debt, so from a financial point of view this is an expense but not a decline in your capital.

New rules 30% regulation as of January 2023

In 2023, the choice for the reimbursement of the actual expat costs of the 30% rules will be determined before the the year. Subsequently, the application of the 30% rule will be capped as of 1 January 2024.

From that moment on, employers can pay their foreign employees, who meet the conditions of the 30% rules, based on the amount of the WNT standard of 2022, a maximum tax-free allowance of 64,800 euros per year.

The interest you pay on the mortgage is also tax deductible. An amount is corrected from the fiscal value of the house, but in essence this is again a deductible item. With this regulation, the Netherlands is unique in Europe and therefore has an excellent business climate for you as an expat.

Our advisers will take this tax deduction into account when declaring your mortgage costs. At the end of each year you must complete a so-called M. Bill (Migrant Biljet) form for the final declaration of your earnings and deductions. The 30% rules can be requested directly from your employer so that you immediately receive a higher salary.

We will assist you on request in arranging tax matters.

New rules 30% regulation