Weller advises both employers and employees on the tax advantages and disadvantages of working abroad.
If you live in the Netherlands but perform some or all of your work in another country, the ‘salary split’ structure may be right for you. In this situation, your salary is partially taxed in the foreign country. This can be advantageous if the local tax rate is lower than in our country. Weller also maps out what social insurance system you fall under and where the premiums are owed, to make sure that you don’t pay premiums two countries.
If you come from abroad to work in the Netherlands, you may well incur extra costs, also known as the ‘extraterritorial costs’. For these costs, your employer can extend you a discretionary untaxed remuneration of 30% of your salary. This is known as the ‘30% scheme’. If you receive this benefit, you do not need to document your expenses. This scheme does, however, require the consent of the tax authorities. You and your employer can submit a joint request for the application of this scheme. You are eligible for the 30% scheme if you meet a number of criteria. The most significant is that you are recruited from abroad and that you have specific expertise. You can meet this criterion if you earn a gross salary of at least €37,296 per year (2018) excluding the tax-free 30% remuneration. With the 30% remuneration, this translates to a salary of €53,280.
Residents of the Netherlands who work in developing countries or other emerging economy regions are also eligible for the 30% scheme.
We can assess whether you might be entitled to this scheme, and help you complete the application.
Pension, remuneration in shares and marital property arrangements/will and testament
Weller can also advise on the best ways for internationally operating employees to arrange their pension.
On dismissal packages, we can tell you what portion of the package will be taxed in the Netherlands and what portion will be taxed in the other country.
In addition, we are specialized in the internal tax treatment of share-based remuneration packages (including, for example, the ‘restricted stock units’ found in the United States and elsewhere).
And what system of inheritance law applies if you die as an ‘expat’ – the Dutch system or the system in the other country? Perhaps it would be worth revising your marital property arrangements and your will?
Weller is the leading specialist in all these areas.