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ARTICLE · 09 MARCH 2026

Why The Netherlands Must Protect And Expand Its Expat Regime

A&O Shearman
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The Wennink report sounds a clear alarm: the Netherlands is losing ground in the global competition for talent. In this article from our series on the Wennink report, we examine the fiscal expat regime...

NetherlandsEmployment and HR
Rens Bondrager
Rens Bondrager
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The Wennink report sounds a clear alarm: the Netherlands is losing ground in the global competition for talent. In this article from our series on the Wennink report, we examine the fiscal expat regime (formerly known as the 30%-facility), how it has been curtailed over the past years, and why the new coalition agreement offers cautious optimism for the future.

The importance of international talent

Wennink described in his report that the Netherlands faces a structural labor challenge. With approximately two workers per pensioner in fifteen years' time—down from seven workers per pensioner - the country simply cannot afford to let its talent pipeline dry up.

The expat regime explained

The expat regime is a tax facility for employees recruited from abroad to work in the Netherlands. Under the regime, employers may grant eligible employees a tax-free allowance of up to 30% (27% as of 2027) of their salary, intended to compensate for the extraterritorial costs of living and

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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