This update outlines what employers need to know about managing mobile talent in the Netherlands in 2026. As we enter the new year, the Dutch global mobility landscape continues to evolve across tax and immigration law. While some long-anticipated measures have now taken effect, others are the result of gradual policy shifts that increase complexity for employers managing internationally mobile workforces. In particular, employers should be aware of changes to the extraterritorial cost regime, ongoing developments within the expat tax regime, adjustments to income and employment tax rules, and new compliance expectations for recognised sponsors.
Cost reimbursement: actual or flat-rate
Under conditions, employers can reimburse inbound employees tax-free for the additional costs of temporary stay outside their country of origin as part of their employment in the Netherlands. In short, there are two methods for the tax-free reimbursement of these extraterritorial costs: the ETK regime (reimbursement based on actual extraterritorial costs) and the Expat tax regime (reimbursement based on a flat-rate scheme, also known as the 30% ruling).
ETK regime – new changes
As of 1 January 2026, certain costs currently eligible for tax-free reimbursement (as extraterritorial costs) can no longer be reimbursed tax-free. This concerns specifically cost of living expenses (often reimbursed via a ‘cost of living allowance’, COLA) and expenses for private phone calls (e.g. to the country of origin). This only applies to inbound employees and not to outbound employees, and is expected to predominantly impact migrant workers and seasonal workers who do not qualify for the Dutch expat tax regime.
Expat tax regime – changes as expected
For the Dutch expat tax regime, minimum salary norms for 2026 amount to EUR 48,013 -the regular norm – or EUR 36,497, which is the lowered norm applicable to employees under 30 years of age with a qualifying Master’s degree.
Unlike earlier years, no new changes were introduced as part of the Tax Plan this year. That does not mean however that there are no changes to the expat tax regime as of 2026, as illustrated by the below overview of the key dates.
Overview key dates expat tax regime
The various changes to the Dutch expat tax regime over the years have increased the complexity of the Dutch expat ruling and the variety of transitional rules. The key dates are:
Box 1 tax rate (a.o. employment income)
Compared to 2025, there is a limited increase of the threshold for the top tax rate of 49.5% as of this date as well.
Box 2 tax rate (substantial interests)
As of 1 January 2024, Box 2 consists of two tax brackets. Compared to 2025, the rates for both brackets remain unchanged. There is an indexation of the threshold for the second bracket to apply. For 2026, the rates in Box 2 are therefore as follows: up to EUR 68,843 the rate is 24.5%, for income received above that amount the rate is 31%.
Box 3 tax rate (personal investment income)
The Box 3 tax rate of 36% remains applicable in 2026. The deemed return on investment for ‘other assets’, that was initially set to increase significantly, was eventually only increased from 5.88% to 6.00% per 1 January 2026. The tax-free amount per taxpayer (heffingvrij vermogen), which was initially set to decrease, was eventually increased from EUR 57,684 in 2025 to EUR 59,357 for 2026.
Background
In short, the employer levy for early retirement schemes can apply in case a payment is made to an employee upon termination of employment and this payment is intended to bridge the period between the end of employment and the start of the employee’s pension. Specific conditions have to be reviewed to determine whether a payment provided to an employee at the end of employment can be qualified as such. If so, this payment is subject to an employer levy.
Changes as of 2026
As of 1 January 2026, the employer levy rate will gradually increase, from 52% (in 2025) to: 57.7% in 2026, 64% in 2027 and 65% in 2028. The tax exemption threshold (RVU drempel-vrijstelling) will remain in place from 2026 onwards. The amount of the threshold will slightly increase, with EUR 300 per 1 January 2026 (subject to annual indexation).
At the time of writing, the liberal progressive D66 party of Rob Jetten is in coalition talks with the CDA and VVD to form a new minority government in the Netherlands. Their aim is to have the formal presentation of the new cabinet to the King on 23 February 2026. With this in mind, further details on potential governing plans, including on immigration and the labour market, will become clearer as negotiations progress and the cabinet formation is finalised.
The Dutch government published the immigration salary thresholds that apply for Highly Skilled Migrant and labour migrant work permit and residence permit applications. These thresholds are indexed on a yearly basis from 1 January. The gross monthly amounts for 2026, excluding 8% holiday pay, are as follows:
The above age-based salary thresholds will also be used as the benchmark for residence permit applications under the ICT Directive. In addition, the gross monthly threshold excluding holiday pay for an EU Blue Card will be EUR 5,942. For graduates applying for an EU Blue Card within a period of 3 years, the gross monthly threshold excluding holiday pay of EUR 4,754 applies.
From 1 January 2026, Dutch companies that employ Highly Skilled Migrants or EU Blue Card holders are legally required to hold records showing that salary payments have been paid to to the employees’ bank account. This new legislation is in line with increasing enforcement of recognised sponsors in recent years.
Documentation that can prove the actual salary payments, such as statements from the company’s bank account (afschrift zakelijke bankrekening), summary of payroll / batch payments (overzicht van een batchbetaling), or any other documents regarding bank transfers as proof of salary payments and receipts of salary payments by the foreign nationals can be used. In practice, the Immigration and Naturalisation Service (IND) already requested such evidence during audits of recognised sponsors. With this change in legislation, this practice has now been underpinned by legislation and formally increases the administrative burden on recognised sponsors.
In July 2025, the outgoing Dutch cabinet announced plans to tighten the Highly Skilled Migrant scheme. The proposed measures aimed to prevent misuse while still attracting highly skilled professionals who support the Dutch knowledge economy. These proposals have been stalled due to the elections and it remains to be seen whether a new cabinet will endorse or propose similar measures.
In a ruling on 23 April 2025, the highest appeals court in the Netherlands confirmed that temporary protection for non-Ukrainian nationals can be withdrawn. Following this ruling, the Immigration and Naturalisation Service (IND) requested those who did not appeal the decision or obtained a different residency status to leave within four weeks starting 4 September 2025. For individuals with a pending appeal, the Temporary Protection Directive rights generally remain until the appeal decision.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Niek Schipper
Partner
Hugo Vijge
Director
Daan Hajer
Senior Manager
Nini Braken-Zheng
Manager
Marijan Vrhovac
Senior Associate
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