ET rules

If you are working in the Netherlands temporarily but you live in another country, you do not need to pay as much tax. This is laid down in the 'ET rules'. 

Reimbursement of additional costs 

‘ET’ stands for ‘extraterritoriale kosten’ ('extraterritorial costs'). These are additional costs that you incur because you are working temporarily in a different country, such as double housing costs, travel costs to visit your family, or higher food costs. Under the ET rules, you do not need to pay as much tax on part of your wages.  

Who are the ET rules for? 

The ET rules are only for people who live in another country and are working in the Netherlands temporarily. This means you have to have a home of your own in the country where you live. You must also actually have additional costs because of your work in the Netherlands. The rules therefore do not apply if you are already settled in the Netherlands. 

What do you need to do? 

In many cases, the employment agency or your employer will arrange the application of the ET rules. You must prove that you live in another country. For example, you must have a tenancy agreement, proof of home ownership, or other official documents. In some cases you also have to prove that you incur travel costs.