The 2026 and 2027 rules
As at 27 October 2026, the maximum tax-free reimbursement is 30% in 2025 and 2026. The earlier sequence of twenty months each at 30%, 20% and 10% was reversed. From 2027 the general maximum becomes 27%. Transitional protection preserves up to 30% for the remaining permitted term for employees who applied the ruling by 31 December 2023.
Employees who started in 2024 move to 27% from 2027 but retain the applicable old, indexed salary threshold. For use beginning from 2025, the new salary threshold also applies from 2027. Check the ruling, remaining term, threshold and any remuneration cap with payroll.
Does pension accrual automatically fall by 30%?
No. Pensionable pay follows the employment agreement and pension scheme. Ask how the reimbursement is recorded and what salary is reported to the pension administrator. ABP guidance distinguishes a non-pensionable expense allowance from a reimbursement structured as regular salary. Do not assume that example determines every scheme.
AOW and additional annuity saving
The expat ruling does not itself determine AOW insurance. Residence, employment and international exceptions determine that position; ask the SVB to assess it where needed.
Annuity deductions use your personal allowance. The 2026 annual maximum is €35,589, based on relevant 2025 data. Unused allowance from 2016–2025 can produce reserve allowance, capped at €42,753 in 2026. This does not automatically compensate for a pension shortfall. Use the Tax Administration calculator and the correct income and pension data.
Frequently asked questions
Do the 20% and 10% stages still apply?
No. The 2026 maximum is 30%. From 2027 the general maximum is 27%, subject to transitional protection.
Is pensionable salary always 70% of salary?
No. Check the salary agreement and pension scheme; effects differ.
Can I use earlier unused allowance?
In 2026, unused allowance from 2016–2025 can count, with a reserve allowance ceiling of €42,753.
Sources and reference date
Reference date: 27 October 2026. Check current conditions before making a decision.