The short answer
Extraterritorial costs are certain extra expenses associated with working outside your country of origin. Actual-cost reimbursements and the expat scheme are different tax routes.
Ask which costs qualify under the current rules
Eligible categories and exclusions can change. For example, the official 2026 guidance excludes extra living costs caused by higher prices from the actual-cost tax-free route. Do not rely on an old agency explanation.
Compare the complete payroll effect
If an arrangement exchanges wage components for reimbursements, request a written calculation before agreeing. Identify the gross wage before and after, which costs are evidenced and how other wage-based calculations are affected. A higher immediate bank payment does not answer questions about pension, holiday allowance or social-insurance wage. The exact arrangement must comply with employment and minimum-wage rules as well as tax conditions.
What to do next
- Ask for the written ET arrangement and eligible cost categories.
- Request side-by-side payslips with and without the exchange.
- Check the effect on wage components and retain evidence of reimbursed costs.
An offer promises more net money through an ET arrangement but shows a lower taxable wage. Ask which genuine costs are reimbursed and what changes in the pension and benefit wage bases.
Questions people ask
Is ET the same as the 30% expat scheme?
No. Actual extraterritorial-cost reimbursement and the expat scheme have different conditions. Ask which route is being used.
Can every housing expense be reimbursed tax-free?
No. Official cost categories, limits and evidence requirements apply. A housing invoice alone does not establish eligibility.
Can I use guidance from last year?
Check the current year. The treatment of some actual costs changed for 2026.
Why request a payslip without the exchange?
It helps you see which gross and taxable components changed, rather than judging the arrangement only by the final bank payment.
Does a higher net payment guarantee a better offer?
No. Compare actual costs, guaranteed wage and possible effects on other wage-based entitlements. Obtain individual advice where unclear.
Sources
Last verified: 4 October 2026. Sources are in Dutch or English.