International School Fees and the 30% Ruling: Tax-Free Reimbursement
Are international school fees tax-free with the 30% ruling?
Yes, if your employer pays them. The employer can designate the fees of an international school as a targeted tax-free reimbursement, in addition to the flat 30% allowance. The school has to qualify: the education follows a foreign system and the school is mainly meant for children of seconded employees. The employer decides whether to pay; it is not an entitlement.
The rule is in the Belastingdienst's Handboek Loonheffingen 2026, par. 19.4.8, and school fees are part of the extraterritorial costs in art. 10ea UB LB 1965.
Which schools and which costs qualify?
Two conditions define the school: the education at the school or department is based on a foreign system, and the school or department is mainly intended for children of seconded employees. An international department of a regular school can qualify too (Handboek, p. 311 and 313).
| Test | What the Handboek requires |
|---|---|
| Education system | The education at the school or department is based on a foreign system |
| Target group | The school or department is mainly intended for children of seconded employees |
| Type of school | An international school, or an international department of a regular school |
The tests are about the school's programme and target group. Ask the school how it describes both, and keep that answer for payroll.
The law also defines the costs. Under art. 10e, paragraph 8 UB LB 1965, school fees are expenses for children of the employee attending primary or secondary education at international schools and international departments of non-international schools, up to the amounts the school charges under its own tariffs. Board and lodging are excluded; transport costs are included. Art. 10ea, paragraph 1, under b counts the school fees as extraterritorial costs on top of the percentage.
How does it relate to the 30% allowance?
School fees come on top of the allowance. The Handboek says that when you use the scheme, or reimburse actual extraterritorial costs, you can also designate school fees, moving costs and a familiarisation visit as targeted exempt reimbursements (par. 19.4.8). Other actual costs cannot be stacked on the flat allowance, so the school fee is an exception.
The Handboek allows the targeted exemption if the employer uses the scheme or reimburses actual extraterritorial costs. Reimbursing actual costs is also limited to a maximum of 5 years. Once neither applies, school fees paid by the employer are taxable wage, unless the employer designates them as final-levy wage under the work-related costs scheme, if that is customary (Handboek p. 301). We did not verify other routes, so ask your payroll provider.
How does the employer process it?
The employer designates the reimbursement as a targeted exempt allowance in payroll and keeps the paperwork. The Belastingdienst states that for these employees you have the same administrative duties as for other employees, and that extra care is needed for allowances paid next to the scheme (Handboek, p. 314).
- Pay actual fees. Reimburse invoiced school fees, not a lump sum.
- Keep the invoice and school description on the payroll file, so both school conditions can be shown.
- Show it separately from the flat allowance on the payslip. The split is explained in the payslip guide.
- Pay only while the scheme or actual-cost route applies. The start and end dates of the ruling are in the beschikking; reimbursing actual costs stops after 5 years.
Employers can read the wider payroll steps in the employer's guide.
What changes in 2026 and 2027?
School fees stay targeted-exempt in 2026. From 1 January 2026 the law no longer allows two other items to be reimbursed tax-free, the extra cost of living and private phone calls to the home country, but not school fees (art. 31a lid 2 onderdeel e Wet LB 1964; Handboek, p. 311, Let op 4). From 2027 the flat percentage falls to 27%; see the 2027 changes. The Handboek 2026 announces no change to the school fee item, and the law as amended for 2027 (art. 31a lid 8 Wet LB 1964) keeps school fees next to the 27% allowance and outside the cap.
To see the flat allowance at your salary, use the 30% ruling calculator. It does not include school fees.
Frequently asked questions
Are international school fees tax-free with the 30% ruling?
Yes, an employer can designate the fees of an international school as a targeted tax-free reimbursement, on top of the flat allowance. The school's education must follow a foreign system and be mainly meant for children of seconded employees. Source: Handboek Loonheffingen 2026, par. 19.4.8.
Does the school fee count against the 30% allowance?
No. The Handboek lists school fees among the costs you can designate in addition to the scheme, so they do not reduce the flat 30% (27% from 2027) allowance.
Is there a limit on tax-free school fees?
No euro cap, but only primary and secondary school fees up to the school's own published tariffs count. Board and lodging are excluded; transport to school is included (art. 10e, paragraph 8 UB LB 1965).
What happens to the school fee exemption in 2027?
The 2027 change lowers the flat percentage from 30% to 27%. The Handboek 2026 does not announce a change to the school fee item, and the law as amended for 2027 (art. 31a lid 8 Wet LB 1964) keeps school fees next to the 27% allowance and outside the cap.
- Handboek Loonheffingen 2026, par. 19.4.5 and 19.4.8: school fees conditions and treatment next to the scheme. Checked 11 October 2026.
- Art. 10e, paragraph 8 and art. 10ea UB LB 1965: the definition of school fees and the extraterritorial costs, including school fees. Checked 11 October 2026.
Start with the ruling itself
The flat 30% allowance depends on a granted ruling. We check the core conditions and pre-fill the official form for €12.10 incl. VAT. You submit it yourself.