The Netherlands stands out as a strategic gateway for tech companies eager to expand into Europe. Its vibrant business environment and highly-skilled workforce make it a top choice for international firms looking to scale.
In particular, the Netherlands offers significant practical advantages for companies considering expansion. It boasts the highest English proficiency among non-native English speakers, ensuring seamless communication with global teams. Its attractive 19% corporate tax rate is substantially lower than neighboring France, Germany and Belgium. This feature allows companies to maximize profitability and reinvest in growth. Furthermore, lower share capital requirements also make setting up operations simpler and more affordable compared to many other European countries.
For tech companies looking to not only expand but attract the best talent, the Netherlands Expat Scheme (formerly known as the 30% ruling) provides a game-changing opportunity. This initiative allows businesses to offer tax-free reimbursements for relocation and medical expenses to highly skilled employees.
With recent updates to the scheme in 2025, companies have even more reasons to take advantage of this program, especially in specialized fields such as software development, data science and artificial intelligence. The Expat Scheme makes the Netherlands a highly attractive location for global talent, helping companies stay competitive on the world stage.
Key advantages of the Expat Scheme for tech companies
While the direct benefits of the Expat Scheme primarily favor employees, tech companies also gain significant advantages that enhance their ability to compete in the global talent market.
Here’s a closer look at the key benefits for both employees and employers:
- Employee Tax Benefits: Employees who qualify for the Expat Scheme can enjoy substantial tax advantages. This includes tax-free reimbursements for various costs, such as relocation, school fees for children and specific medical expenses. Employees essentially enjoy a higher standard of living without being taxed on the full value of their compensation package.
- Increased Talent Pool: The Netherlands is home to a diverse, highly educated workforce, and the Expat Scheme allows companies to tap into a larger pool of international talent. With the country’s strong focus on technology and innovation, businesses can hire employees with the expertise needed to drive their growth in the global marketplace.
- Cost Efficiency: For tech companies expanding into the Netherlands, the Expat Scheme is an excellent way to minimize the cost of hiring skilled employees. The scheme offers companies the ability to offer higher net salaries, making it easier to compete with global salaries in the tech sector. The tax-free allowances also make it easier for businesses to attract candidates without increasing their salary budgets.
- Flexibility for Employers and Employees: The scheme offers flexibility for both employers and employees, allowing companies to design tailored compensation packages that align with their business needs and employees’ expectations. This flexibility is especially important for tech companies, where the competition for talent is fierce.
Here’s a breakdown of how the Expat Scheme affects net salaries for two common roles:
- Senior Software Engineer (Gross Salary: €75,000): Without the scheme, the employee would pay approximately €31,500 in Dutch taxes and social security, leaving them with a net salary of around €43,500. However, with the scheme, €22,500 of the gross salary is considered tax-free, reducing the taxable income to €52,500. This results in a Dutch tax liability of about €19,000, meaning the employee takes home a net salary of around €56,000—significantly higher.
- Mid-Level UX Designer (Gross Salary: €45,000): Without the scheme, the employee would pay about €15,750 in taxes and social security, leaving a net salary of approximately €29,250. With the scheme the tax-free component of €13,500 reduces the taxable salary to €31,500. This reduces the Dutch tax and social security contributions to around €9,450, meaning the employee’s net salary increases to about €35,550.
Eligibility criteria and conditions
To benefit from the Expat Scheme in 2025, employees must meet specific criteria. Key requirements include:
- Highly Skilled Migrants: The employee must be highly skilled, typically working in roles requiring specialized expertise. For tech companies, this often includes software engineers, data scientists and IT professionals.
- Salary Threshold: Employees must meet a minimum salary threshold, which has been updated in 2025 to reflect changes in the labor market and cost of living. For employees aged 30 and above, the minimum gross salary requirement is €58,000 per year, while employees under 30 must earn at least €44,000 annually.
- No Previous Employment in the Netherlands: Employees must not have lived or worked in the Netherlands for the previous 25 years.
- Approved Application: Employers must submit an application to the Dutch tax authorities on behalf of their employees. Once approved, employees can enjoy the benefits of the Expat Scheme for a maximum period of five years.
Leveraging the Expat Scheme
Tech companies can leverage the Expat Scheme to attract and retain top talent from around the world. However, navigating the application process and ensuring compliance with all requirements can be complex. That’s where working with the right global solutions provider makes a difference.
Partnering with an expert who combines local knowledge with a global perspective is essential. Such a partner helps you track regulatory updates, ensures compliance and offers solutions that can scale with your company’s growth.
Here’s how you can effectively navigate global expansion and talent acquisition:
- Expert Recruitment: An experienced partner can help identify and hire highly skilled professionals, ensuring you have the right team to drive your company’s success. They can also support you in navigating local hiring practices and regulations, enhancing your ability to attract top talent. The right partner can offer flexible hiring models, including Employer of Record (EOR), Non-Resident Payroll (NRP) or by establishing a local entity.
- Entity Setup: Whether you’re establishing a subsidiary, branch or representative office in the Netherlands, working with a partner who understands the local regulatory landscape can simplify the process. From business registration to compliance with local laws, a knowledgeable partner ensures a smooth setup, tailored to your business needs.
- Global Payroll: Managing a cross-border workforce requires expertise in payroll and tax regulations across different jurisdictions. A trusted partner helps streamline global payroll, ensuring timely and accurate payments, tax compliance and benefits administration. This lets your business focus on growth, knowing payroll is handled efficiently.
Looking ahead: tapping into tech talent in the Netherlands
The Netherlands’ Expat Scheme has seen a significant increase in utilization, with hiring under the scheme nearly doubling in the past five years. This growth demonstrates how valuable the Expat Scheme has become for tech companies looking to expand into Europe and attract top-tier international talent.
The Netherlands offers a powerful competitive advantage for companies looking to make their mark in the European market, with tax-free allowances and a business-friendly environment. By working with an expert partner, you can navigate the complexities of setting up operations and attract the skilled talent needed to scale globally.
If you’re considering expanding to the Netherlands, now is the ideal time to take advantage of the Expat Scheme and the many advantages the country offers. Expert support can help you build your international team and establish your presence in one of Europe’s most dynamic economies.
Contact us today to learn how our global recruitment and cross-border solutions can support your business goals.
