Under the Expat Scheme, the employee reduces their salary and other gross emoluments and receives a fixed net expense allowance in return. This fixed expense allowance is intended to cover so-called extraterritorial costs. If the employee has opted for this fixed expense allowance, no further expenses may be claimed that fall under these extraterritorial costs, such as the costs of double accommodation, the costs of a Dutch language course or the costs of applying for the Expat Scheme.
More information about extraterritorial costs can be found on the website of the Belastingdienst.
Expat Scheme for foreign employees with specific expertise
If you come to work in the Netherlands from another country, then you will generally incur extraterritorial costs. In this case, you may opt to apply for the Expat Scheme, by which 30% of your income, including any reimbursements, is paid to you tax free. To do so, you require a dicision from the Belastingdienst, which is subject to strict conditions:
- you are employed directly by Vrije Universiteit Amsterdam
- you have specific expertise that cannot be found or is in very short supply on the Dutch job market
- you were recruited from outside the Netherlands.
In the 24 months preceding your first working day in the Netherlands, you must have lived more than 150 kilometres (as the crow flies) from the Dutch border for more than 16 months.
More information can be found on the Expat Scheme conditions page on the website of the Belastingdienst.
If you meet all the conditions, you can start the application procedure by clicking on the blue 'Take action now' button on this page. Please note: the entire process by the Belastingdienst can take up to 12 weeks. If their decision is positive, the HR Service Desk subsequently will process the Expat Scheme for you manually in the personnel information system.
If you participate in the Expat Scheme, your gross salary will be temporarily reduced. This reduced salary will then be the legal basis that is used to calculate the sum on which your pension accrual is based: for as long as the Expat Scheme applies you will accrue less pension. You can opt to negate this reduction of pension accrual.
Expat Scheme for long-term assignments abroad
If you are posted abroad by VU Amsterdam, you can apply for an allowance to compensate you for the expenses associated with your long-term temporary posting abroad. The director of your unit will examine your case to determine whether the posting in question falls within the scope of the Expat Scheme for long-term postings abroad. This financial compensation (which is untaxed) is equivalent to 30% of your originally agreed salary.
For more information, please visit the Working abroad page.