A Mid-Year Financial Check-Up for Expats in the Netherlands

Financial planning has rarely rewarded people for putting their paperwork in a drawer and forgetting about it.

For international professionals, 2026 presents several reasons to carry out a mid-year review. In this article we touch on a few key areas to consider for international professionals specifically in the Netherlands. Some of the  principles apply to other EU countries and it is of course general information and not specific advice, so speak with us for more comprehensive assessment of how these factors fit into your financial plan and your life. Finally, we do mention taxes here, with the clear disclaimer that we are not regulated tax advisers. The information provided is in the context of managing your financial plan and lives as expats here in the Netherlands. If you are unsure about the impact on you, we recommend you speak with a regulated tax adviser. 

The Dutch Expat Scheme, commonly known as the 30% facility, remains valuable for many international employees, but the rules, thresholds and wider tax implications continue to evolve and need to be understood. At the same time, the continuing changes to Box 3 mean that people with savings, investments, property or other assets should pay closer attention to how their taxable return is calculated and remain flexible to adapt to expected future changes.

This does not mean making financial changes simply because the rules are complicated. It means understanding which rules affect you and ensuring that your wider financial plan remains appropriate.

Check that your 30% facility is working as expected

The 30% facility allows qualifying employers to pay eligible international employees an untaxed allowance for extraterritorial costs. If you are an expat in France or Denmark, you will be aware of similar models there and the general principles apply.

In The Netherlands, the maximum allowance is generally 30% of salary including the reimbursement, although an employer is not required to provide the full amount up to a maximum salary cap. The arrangement also depends on meeting the relevant conditions and holding a valid decision from the Dutch Tax Administration.

For 2026, the standard minimum annual salary for an employee with specific expertise is €48,013. A reduced threshold of €36,497 applies to qualifying employees under 30. The benefit is also capped: the maximum tax free allowance for the full year is €78,600, based on remuneration of €262,000 or more.

A useful mid-year check should therefore confirm:

Whether your employer is applying the facility correctly.

Whether your salary remains above the relevant threshold.

When you received approval to be on the scheme. Depending on when you were approved, may determine what other benefits and potential exemptions you may or may not be eligible for.

When your existing decision expires.

Whether a promotion, bonus, reduction in working hours or period of unpaid leave affects the calculation.

Whether you need to take action following a change of employer.

If you move to a new employer outside the same connected group, continuation may be possible when the new employment begins within three months. A new application should generally be submitted within four months of starting if the facility is to apply from the first working day.

These details are easy to overlook during a career change, particularly when the main focus is on the new role rather than its tax administration.

Do not overlook the end of partial foreign tax liability

The 30% facility previously allowed eligible taxpayers to choose partial foreign tax liability. This could reduce the Dutch tax exposure of certain foreign assets in Boxes 2 and 3.

For most people, this option is no longer available from the 2025 tax return. Transitional protection remains for people who were already using the Expat Scheme before 2024, allowing them to continue using partial foreign tax liability through the 2026 tax return.

This is particularly significant for expats with investments, substantial shareholdings, property or other assets outside the Netherlands.

Someone who was previously outside the full scope of Box 3 may soon find that a broader collection of assets needs to be considered. This makes 2026 an important planning year for those approaching the end of transitional treatment. It is an important catalyst for a full financial review and we recommend you speak with us to see how you can best manage your assets, liabilities and broader life in line with your objectives. 

The right response is not necessarily to sell, transfer or restructure assets. It is to model the likely position before the change takes effect and obtain appropriate Dutch tax advice.

Understand the 2026 Box 3 assumptions

Under the current transitional system, Box 3 initially calculates income using notional returns based on the actual type of assets held.

The difference between the savings and investment assumptions is important. In recent years you have had the option of selecting the lesser of actual returns and deemed returns for cash, investments, and liabilities. From 2027 this will move to an actual returns only model in advance of further expected changes to the system.

Start keeping better records now

You should not wait until the tax return is due to reconstruct an entire year of investment activity.

Keep records of interest, dividends, asset values, purchases, sales and qualifying debt interest. If you own a second property, retain relevant valuations, rental records and information showing when the property was available for private use.

It may also be useful to estimate both the notional and actual return during the year. This gives you a clearer idea of your likely tax position and prevents the outcome from becoming an unpleasant surprise.

Tax should not be the only factor behind an investment decision, but it should form part of the analysis and be considered in your broader financial planning. Speak with us to ensure you are in the optimal position to manage these changes and reach your targets.