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30% allowance rule and conversion of a driver’s license

Relocation to the Netherlands involves a lot of (extra) costs for you and your employee, the so-called extra-territorial costs. Your employer may give you a free (tax-free) reimbursement of these costs. Also, your employer may give you 30% of your wages, including the reimbursement. This arrangement is known as the 30& allowance rule. For this, you are not required to show proof of any costs.


However, you do have to submit a formal application. The tax authorities will take a decision on this application within 6 weeks after the request has been submitted.

A further advantage of this 30% allowance rule is the possibility of converting a foreign driver’s license into a Dutch driver’s license. Without taking any lessons or doing a driving test.


Of course, this arrangement is subject to a number of conditions:

  • The amount of the employee’s salary determines whether they are eligible for it and, if so, to what percentage.
  • Also the  employee’s age and educational background play a part in determining whether they are entitled to the arrangement.
  • The employee’s recruitment must have taken place abroad (at least 150 km from the Dutch border).

Do you have any questions?