What are extraterritorial costs?
Employees who come to the Netherlands from another country to work are often compensated for additional costs associated with their stay outside their country of origin, so-called extraterritorial costs (belastingdienst).
To qualify, the following conditions must be met:
- the employee has been employed outside the country of origin and this is documented
- the employee is registered in the country of employment
- the Dutch employment agency has concluded an employment contract with the employee which specifies address of residence outside the Netherlands
- the employment agency has offered the employee health insurance and is also responsible for arranging accommodation
How can I claim extraterritorial costs?
To claim a refund, you must submit a written application to the Dutch Tax Agency. The following conditions must be met:
- the employee has a foreign address in the country of residence (an identity card/passport from the country of origin must be submitted)
- you must provide other proof of your connection to your country of origin/residence, e.g. car insurance, telephone subscription contract etc.
- if the employee rents a flat by himself, a Dutch rental agreement with specified rent amount
- from time to time, the employee must provide receipts for travel to the country of residence, e.g. fuel vouchers, airline tickets, etc.