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Extraterritorial costs

When you arrive in the Netherlands as an expat you incur added expenses. To support expats in this process of living and readjusting in the Netherlands, the belastingdeinst ( dutch tax office) grants a 30% tax benefit or reimbursement. This helps expats to cover what is popularly known as Extraterritorial Costs. Read More about 30% tax ruling here.

This 30% tax support is a blessing for most expats who arrive in large numbers every year to kick start a new life in The Netherlands.

The Dutch have been very thoughtful when it came to determining what could be the extra costs for expats while they live in the Netherlands. This includes the costs t of calling home or also applying for tax return by a tax agent in your own country. Lets have a closer look.

What are these Extraterritorial Costs

  • Expenses for living in the Netherlands if the prices are higher than the country of origin (extra expenses can be for following meals, gas, water and light).

  • Expenditure for arriving in the Netherlands (including your family)

  • Costs for search for a home or a school

  • Costs for applying for or converting official personal documents, such as residence permits, visas and driver's licenses

  • Costs for medical examinations and vaccinations for the stay in the Netherlands

  • Double accommodation costs when you continue to live in the country where you come from (hotel expenses)

  • the (first) housing costs: if you receive accommodation, only the (first) housing costs exceeding 18% of the wages from current employment are extraterritorial costs. The rest of the costs are wages.

  • storage costs for the part of the estate that you do not move to the Netherlands.

  • travel costs to the country where you come from, for example for family visits or family reunification.

  • Costs for having the income tax return filled in if this is more expensive than having the declaration completed by a similar tax adviser in the country where you come from. (A maximum of € 1,000 )

  • Expenditure to learn the Dutch language for you and for the family members who stay with you

  • extra (non-business) call costs for contacting your people back at home

  • the costs of applying for an exemption from social security example A1 or E101 certificate.

For more information please visit official Website of belastingdienst ( Dutch tax office)


Aditi Gupta


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