🇳🇱 Netherlands tax

• Who: Recruited from abroad or transferred within a multinational group
• Limit: €48k/yr ≈ $54k

An employer may pay a recruited foreign employee up to 30% of wages tax-free (or reimburse actual extraterritorial costs) for up to five years; the tax-free share falls to 27% from 1 January 2027. In 2026 the salary standard is above EUR 48,013 (≈ $53,600) and the maximum tax-free allowance is EUR 78,600 (≈ $87,800). ^{1 2 3 4}

Taxed on

Gross wages, paid as a tax-free allowance for extraterritorial costs, capped at the maximum remuneration under the Standard for Remuneration Act (WNT); the allowance reaches its 2026 maximum of EUR 78,600 (≈ $87,800) at a salary of EUR 262,000 (≈ $293,000). This scheme concerns the employee's Dutch wages, not foreign-source income, which a Dutch resident reports under the ordinary rules.

Who it applies to

• Recruited from abroad or transferred within a multinational group, with specific expertise scarce on the Dutch labour market.
• Lived more than 150 kilometres from the Dutch border for more than 16 of the 24 months before the first working day.
• 2026 salary standard: taxable annual wage above EUR 48,013 (≈ $53,600) (excluding the targeted exemption); EUR 36,497 (≈ $40,800) for employees under 30 with a Dutch master's degree or equivalent.
• Employer requests approval within four months after the first working day.

Exclusions

• For employees who started before 1 January 2024 the old rules apply for the full five years; the maximum-remuneration cap applies to them from 1 January 2026.
• From 1 January 2027 the maximum tax-free share is 27% and, per the Business.gov.nl notice, the salary standard rises to EUR 50,436 (≈ $56,300) (EUR 38,388 (≈ $42,900) for the under-30 master graduates) in 2024 prices, indexed each year.
• Partial non-resident taxation: employees who obtained the scheme in the last payroll period of 2023 can keep it until the end of 2026 only.

Limits

• EUR 48,013 a year (≈ $53,600) · 2026 salary standard (more than this, excluding the targeted exemption)
• EUR 36,497 a year (≈ $40,800) · 2026 salary standard, employees under 30 with a master's degree
• EUR 78,600 a year (≈ $87,800) · Maximum tax-free allowance in 2026 (reached at a salary of EUR 262,000 (≈ $293,000))
• EUR 46,107 a year (≈ $51,500) · Salary standard at 2024 prices; indexed annually
• EUR 50,436 a year (≈ $56,300) · Salary standard from 1 January 2027 at 2024 prices; indexed annually
• EUR 38,388 a year (≈ $42,900) · Under-30 master graduate standard from 1 January 2027 at 2024 prices; indexed annually

Tax residence

Eligibility depends on distance and months lived abroad before starting in the Netherlands, not on days of Dutch residence.

Visas

Typically combined with a highly skilled migrant or similar permit but not tied to a visa.

Other taxes

Social security and payroll taxes stay with the employer; the employer must choose the percentage or cost reimbursement at the first payroll period of each year.

Checked against official sources on 10 Oct 2026Change log