What expenses can I claim locally?
Expenses and Allowances
While working overseas, it is normal to expect that some of your expenses incurred are going to be claimable as tax free expenses. However there is not a European or worldwide amount that is allowable: each country has different rules and regulations.
For example, in some countries you are able to claim double housing costs but in others this would be seen as a benefit in kind and therefore taxable.
It is also worth noting that if your package includes either a per diem living allowance, monthly allowance to offset cost of living or if your company provides you with accommodation locally (paid directly by them), these will not necessarily be seen as tax-free allowances by the local tax authorities.
For example, in the Netherlands there is a tax-free allowance known as the 30% ruling which is paid to highly skilled foreign workers employed from overseas. This means that tax is only payable on 70% of the gross salary. However once you are receiving this allowance, you will not then be able to claim for other expenses, including your accommodation, irrespective of whether you pay this directly or whether it is paid for by your employer.
Whichever country you are moving to, you should contact us to take advice on the package that can be put together for you regarding your tax free allowances.