Relocating to work abroad can be exciting but also challenging. Employees moving to a new country must handle many practical and emotional adjustments alongside their job responsibilities. A well-designed relocation package not only helps employees settle in quickly but also encourages international talent to accept positions in the Netherlands.
At Octagon Professionals, our mission and vision are one: to be the trusted HR partner of choice in the Netherlands and beyond, delivering innovative, people-first solutions that help organisations and individuals thrive. We believe in creating workplaces where diversity flourishes, connections matter and integrity guides every action.
Creating an Effective Relocation Package Strategy
When hiring people that need to relocate to the Netherlands, several factors influence your strategy. It helps to start by asking key questions such as:
- How many employees will relocate, and is it a recurring need or a one-time move?
- Do you host frequent business travellers? Are they on short- or long-term assignments?
- Which relocation costs dominate your budget, accommodation, meals, or transport, and how can you optimize them?
- Does your global policy comply with Dutch labour and tax regulations?
- Do employees need to be on-site regularly or travel frequently to clients?
Each company’s situation differs, so there’s no universal solution. If you are new to operating in the Netherlands, consulting with experienced HR partners or a relocation company can be extremely helpful. This overview explores common relocation practices in the Dutch market, focusing on three essential areas: housing, meals, and transportation.
Where to Start When Building a Relocation Package
As an employer, decide how much support you want to provide to employees relocating to the Netherlands. To attract skilled international talent, the Dutch government offers the 30% ruling, a tax benefit that allows employers to grant a tax-free relocation allowance of up to €7,750, excluding travel expenses. This incentive significantly helps employees cover their moving costs and establish a new life in the Netherlands.
Immediate, guided assistance after arrival greatly improves employee productivity and satisfaction. You can either collaborate with a relocation company or manage the process internally. A solid infrastructure for relocation and ongoing support benefits both long-term expatriates and short-term business travellers.
Accommodation Options in a Relocation Package
1. Reimbursement of Costs
The simplest approach is to reimburse employees for accommodation expenses. They choose and book their own hotel or apartment, then submit receipts for reimbursement. While this offers flexibility, it can lead to unpredictable expenses and additional administrative work for your finance team.
Advantages:
- High flexibility
Disadvantages:
- Hard-to-control costs
- Employees spend time organising housing
2. Partnering with Hotels
Many businesses negotiate agreements with hotel chains or local hotels near their offices or client sites. Proximity saves commuting time, helps new arrivals adjust, and keeps travel costs down making it a valuable part of a relocation package. These corporate deals can also secure lower room rates during peak seasons.
Advantages:
- Cost-effective
- Suitable for short stays and client visits
- Consistent quality accommodation
Disadvantages:
- Limited room availability during high demand
3. Leasing with Aparthotels or Agencies
Some companies lease rooms or entire properties for relocating staff. Aparthotels such as The Student Hotel in major Dutch cities provide long-term solutions with shared kitchens, gyms, and laundry rooms. These facilities help employees register at city hall, complete immigration steps, and open a bank account.
Advantages:
- Predictable, fixed costs
- Full range of facilities for daily needs
Disadvantages:
- Risk of low occupancy
- Limited maximum stay duration
4. Providing a Housing Allowance
For long-term relocations, offering a housing allowance can be ideal. Employees can choose their own accommodation while the company sets a standard allowance based on average local rent prices. This approach gives flexibility without long-term rental commitments, and the allowance remains tax-free, a strong attraction for employees working abroad.
Meals as Part of a Relocation Package
Although not mandatory, providing meals or meal benefits enhances employee satisfaction and strengthens employer branding. In the Netherlands, HR or office managers often pre-order meals, or companies establish in-house canteens. Some choose to outsource catering to third-party providers who manage kitchen operations.
Another popular option is offering supermarket gift cards or meal vouchers. Regardless of the setup, most offices provide coffee, tea, water, and light snacks such as fruit and bread, small gestures that make a big difference to new arrivals.
Transportation Support for Employees Working Abroad
When employees relocate or travel to work abroad, transportation becomes a crucial part of the relocation package. Companies can pay for flights directly or reimburse employees later. These reimbursements remain tax-free if they stay below 1.7% of the total annual salary. Once in the Netherlands, employers can issue temporary travel cards such as the Anonymous OV-chipkaart, usable on trams, buses, trains, and even shared bikes across Dutch cities.
Providing clear guidance on commuting options helps employees integrate quickly and move around comfortably.
Partner with Octagon Professionals to Build the Right Relocation Package
At Octagon Professionals, we have years of experience helping international companies design competitive relocation and compensation packages. Our experts understand Dutch employment law, taxation, and global workforce mobility.
Whether you need to create a relocation policy from scratch or optimize your current one, we’ll help you craft a relocation package that attracts top talent and supports your team’s success when they work abroad. Contact our HR consultants today to learn how Octagon can help your organisation grow confidently in the Netherlands and beyond.
