Expenses and Allowances

In certain countries, tax breaks and special arrangements exist for expatriate individuals. For example:

• in the Netherlands most contractors will be eligible for a generous tax break known as the 30% Allowance;
• in Spain there is a flat tax rate of 24% for non-residents.

In many countries on top of such allowances, you can normally claim some expenses free of tax for costs incurred in working overseas. For example you may be able to claim for double housing costs and travel to and from your home location.

Factors that affect your eligibility for this are domicile, residence, local tax allowances and family situation, so it is worth taking advice specific to your personal situation and with regard to the country of assignment.

It is also worth noting that allowances paid to you on top of your daily/hourly rate are not necessarily tax –free just because they call them a living allowance or per diem.

Please contact us for any further information that is not covered in this section or for clarification regarding your situaion while working overseas.