The 30% facility is a tax measure for employees from abroad and employees sent abroad by the University. Under specific conditions the employer is entitled to pay out a maximum of 30% of your income in the form of an allowance for a temporary stay in the Netherlands or abroad. This allowance for so-called extra-territorial expenses is tax-free.
Your HR department is responsible for handling the application for the 30% facility. The final decision regarding your eligibility lies with the Tax Authority (Dutch only). The 30% facility can be applied under the following conditions:
- Prior to your appointment you lived for at least 16 months at a distance of more than 150 km from the Dutch border.
- You possess expertise that is scarce or unavailable on the Dutch labour market.
If you are appointed to an academic position, you should possess specific expertise. This requirement also applies if you are appointed to a non-academic position with a minimum taxable income of € 37,296 (2018) or – if you are younger than 30 – € 28,350 (2018).
If you change employer, you still may be eligible for the 30% facility. The employment contract with the new employer must then be concluded within 3 months after the end of the work at the previous employer. You and your new employer must also apply for a new decision with the Tax Authority.
If you are sent abroad, you may also be eligible for the 30% facility. In that case you should be stationed abroad for at least 45 days within a period of 12 months. Your HR department is responsible for applying for the 30% facility. Outgoing employees do not require a decision from the Tax Authority in order to be eligible for the 30% facility.
Consequences of the 30% facility
Application of the 30% facility results in a lower gross income. This is due to the fact that 30% of your taxable income is paid out as a tax-free allowance. A lower gross income may have consequences for your pensionable pay and any benefits or allowances, such as unemployment or housing benefits. When the ruling ends, you may expect a decrease in your net income.
If you qualify for the 30% facility, you do not have to pay tax on the following:
- the costs incurred in the removal, temporary storage and transfer of your household effects.
- the costs incurred in a visit to the Netherlands to become acquainted with the company at which you are going to work.
- the costs incurred in the application for or conversion of a work permit.
You will need permission from the Tax and Customs Administration to apply the 30% facility. We will help you submit your application. If you are seconded abroad and wish to make use of the 30% facility, you can submit the application yourself.
Marie Curie Fellows
If you are a Marie Curie Fellow, you can choose to make use of the 30% facility or have your actual costs reimbursed. You are not allowed to make use of both facilities, because this would mean a double untaxed allowance. You decide for yourself which facility suits you best. If you need help, please contact your HRM department.
If you do choose to make use of the 30% facility, your extraterritorial costs will no longer be reimbursed. However, you may still qualify for tax-free allowances that do not relate to the extraterritorial costs. This could mean the general commuting allowance, allowances for fixed expenses and removal expenses.