What do relocation allowances cover?

In the 2026 global labor market, the relocation allowance, often referred to as the relocation allowance, is one of the most critical parts of an employment benefits package for international talent. Companies in the Netherlands compete fiercely for specialists in the tech, healthcare and energy sectors, and a generous relocation package is often the decisive factor for an employee to make the switch to the Netherlands. But what exactly does such compensation mean? Is it just a bag of money for the flight ticket, or does it cover the entire transition of the employee's life?

A moving allowance in 2026 has evolved from a simple expense allowance to an integrated support package. In this article, we analyse the various components that a professional relocation allowance covers and how they are treated for tax purposes in the current Dutch system.

Logistics and transport of household goods

The most fundamental part of compensation is the physical movement of assets. In 2026, the costs for international transport increased significantly, making this a heavy item on the employee's budget.

• International movers: The fee usually covers the costs of a licensed international mover, including packing, loading, shipping and unpacking the contents. This often involves a maximum volume, such as a 20ft or 40ft container.
• Insurance: A good allowance also covers transport insurance for the full value of the assets during the trip by sea or air, to compensate for damage caused by turbulence or seagoing.
• Storage costs: If the new home in the Netherlands is not yet ready, many packages cover temporary storage of the contents in a secure warehouse for a period of 30 to 60 days.

Travel costs and temporary accommodation

The transition period between leaving the home country and moving into the permanent home is a costly phase. Employers will almost always cover this in 2026 through the relocation scheme to offer the employee a soft landing.

This usually includes airline tickets for the employee and the accompanying family. Once you arrive in the Netherlands, the allowance provides' short-stay 'housing. These are fully furnished apartments where the family can stay for the first one to three months. This period is crucial to find a permanent home without time pressure and to get through the probationary period at work. The costs for a temporary rental car or an NS business card for the first month also often fall under this item, so that mobility is guaranteed immediately after arrival.

Establishment Services (Settling-in services)

Moving to the Netherlands in 2026 involves an enormous administrative burden. Relocation agencies, whose costs are borne by the employer, help the employee through the bureaucratic maze.

The fee covers the costs of a personal consultant who assists with BRP registration with the municipality to obtain the Social Security Number (BSN). It also includes help with banking and insurance, such as opening a Dutch bank account and taking out compulsory basic health insurance. An essential component in the current market is housing assistance; a specialized rental agent who assists the employee with viewings and the legal review of leases will almost always be reimbursed in 2026.

Family and education support

In 2026, companies will realize that a relocation is only successful if the whole family feels at home. That's why comprehensive packages cover more than just the immediate needs of the employee.

Educational support is a priority here. The allowance often covers mediation costs for international schools or helps with enrollment in the Dutch school system through an education expert. In addition, there is increasingly “partner support”. This can be a budget for a career coach who helps the moving partner find work in the Netherlands, or a fee for Dutch language courses for the whole family. In 2026, this holistic approach will be seen as an investment in the long-term employability of the employee.

Tax rules and the flat-rate allowance

In the Netherlands, the tax treatment of the moving allowance in 2026 is subject to strict rules within the Work Costs Scheme (WKR).

The employer may reimburse the actual costs of transferring the contents untaxed. In addition, a fixed amount of up to €7,750 may be paid tax-free for “other costs”, such as refurnishing the home, transferring subscriptions or purchasing new curtains. For employees who qualify for the 30% facility, this package offers additional financial space, as the combination of a tax-free part of the salary and an untaxed moving allowance significantly increases purchasing power in the first year.

Indirect costs: Legal and immigration advice

For non-EU employees, the relocation allowance covers the often high costs of the immigration procedure. This includes the residence permit fee (IND fee) and the costs of an immigration lawyer or a specialized agency that provides the application for the recognized sponsor. The costs of legalizing and translating official documents, such as birth certificates and marriage certificates, will also be reimbursed by the employer as standard in 2026. Without this coverage, the financial threshold for many international talent would be too high to make the move to the Netherlands.

A full moving allowance is therefore an instrument that removes the physical, financial and emotional burden of an international move. In a market where every day counts, a well-covered allowance ensures that employees can focus on their new role from day one, instead of on the logistical chaos of emigration.