Since 2022, individuals in the Netherlands can no longer deduct study costs from their personal income tax return. However, there is an alternative route that still offers a significant tax benefit: gross-to-net salary exchange through your employer.
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Cover tuition costs through your gross salary
How does it work?
Your employer reimburses your tuition costs tax-free, this is permitted under the Dutch work-related expenses scheme (werkkostenregeling). In return, your gross salary is temporarily reduced by the same amount. In effect, you pay for the program out of your gross salary rather than your net income.
Here's how the arrangement works in practice:
You and your employer add an addendum to your employment contract.
The addendum states that you are exchanging part of your gross salary for tuition reimbursement.
Your employer pays the tuition directly to TIAS — tax-free for you.
Your gross salary is reduced by the agreed amount for the duration of the program.
In addition to your regular salary, you may also be able to apply vacation pay, bonuses, overtime pay, or a 13th month salary toward the arrangement, subject to applicable conditions.
Example calculation
Let's say you're enrolled in a TIAS program with an annual tuition contribution of €15,000, and a substantial portion of your income falls in the 49.5% tax bracket.
Without this arrangement
Tuition costs €15,000
(net) costs: €15,000
With gross salary exchange
Tuition costs €15,000
(net) costs ~€7,575
(net)Your benefit—~€7,425 per year
In this example, you effectively pay close to half the cost, while your employer's bottom line remains unchanged.
Important considerations
A temporary reduction in gross salary may affect: mortgage interest deduction, unemployment or disability benefits, pension accrual, and the payout value of sold vacation days.
Your salary can never be reduced below the statutory minimum wage.
If you leave your employer before the full amount has been offset, your employer may require repayment of the remaining tuition — and the associated tax benefit for that portion would be lost.
Always discuss this arrangement with your employer's HR or finance department and, where applicable, consult the Dutch Tax Authority (Belastingdienst).
TIAS does not provide individual tax advice. The information above is for illustrative purposes only.
Interested?
Bring it up during your no-obligation advisory session, we're happy to help you make the case to your employer.