The ‘30% regulation’ permits you to reimburse a foreign employee’s extra-territorial costs (i.e. costs made outside of the Netherlands) if that employee travels to the Netherlands for work. Conditions apply, of course. One of those conditions is that of the 24 months before his/her first workday in the Netherlands, the employee in question must have lived abroad for more than 16 months. Moreover, the place of residence must be more than 150 kilometers (as the crow flies) from the Dutch border. In other words, employees living in Belgium, Luxemburg, the North of France, certain areas in Germany and a narrow section of the United Kingdom are thus not eligible for the 30% regulation. However, this ‘150 kilometer criterium’ for eligibility does not apply if three conditions mentioned further below are met. As of January 1, 2021, the rules for the exception have been changed slightly.
The duration for the exemption from the ‘150 kilometer criterium’ has been shortened from eight to five years for foreign employees who meet the conditions mentioned below.
In order to be eligible for the 30% regulation, the respective foreign employee must thus meet the aforementioned ‘150 kilometer criterium’. However, this criterium does not apply if all three of the following conditions are met:
1) The employee in question has worked in the Netherlands before and was at the time eligible for the 30% regulation. (S)he has since then moved back abroad.
2) If the employee in question has worked in the Netherlands before, the first workday was at least five years ago.
3) Of the 24 months before his/her first workday in the Netherlands, the employee in question must have lived abroad for more than 16 months and lived more than 150 kilometers (as the crow flies) from the Dutch border.