The Netherlands has a special and very attractive tax regime for expats. Employees who are temporarily seconded abroad or to the Netherlands usually receive a reimbursement for the extra costs of living outside their home country, the so-called extraterritorial costs. As an employer, you can choose between reimbursement of the actual costs or use the 30% ruling, which applies in The Netherlands. The ruling is an excellent way to attract those workers that are hard to find locally, as it offers a true incentive in the form of a higher net wage.
Dutch 30% ruling
This Dutch 30% ruling means you can offer a maximum of 30% of the salary including the reimbursement, tax-free. Or you can offer a free (untaxed) reimbursement for the extraterritorial costs that were incurred.
Whichever option you choose, Arvode can provide the correct payroll services.