What is the difference between an expat or an immigrant?

Russell Advocaten · 18 aug 2026

The terms “expat” and “immigrant” are often used interchangeably in everyday speech, but they carry meaningfully different connotations, and, in some legal contexts, different consequences. In straightforward terms, an expat (short for expatriate) is someone who lives and works outside their home country, typically on a temporary or professionally driven basis, while an immigrant is someone who relocates to another country with the intention of settling there permanently or long term. The distinction is not always clear-cut in law, and the label a person uses does not automatically determine their legal status. The questions below unpack how these two categories differ in practice, particularly for those living and working in the Netherlands.

Is the word “expat” just a polite term for immigrant?

The word “expat” is not simply a polite synonym for immigrant, though the two terms overlap more than most people acknowledge. “Expat” tends to describe someone living abroad temporarily, usually for professional reasons and with the expectation of eventually returning home. “Immigrant” more commonly describes someone who has moved to a new country with the intention of settling there long term or permanently. The distinction is largely one of intent, duration, and, in many cases, social convention.

In practice, the line between the two is blurry. A person who arrives in the Netherlands on a work assignment for two years is widely referred to as an expat. If that same person renews their contract, brings their family over, buys a home, and remains for a decade, many would argue they have become an immigrant in all but name. The word “expat” carries connotations of temporariness and professional mobility, while “immigrant” implies a deeper commitment to the new country.

It is worth noting that the label a person applies to themselves does not change their legal status. Dutch law and immigration policy do not use the term “expat” as a formal legal category. What matters legally is the type of residence permit held, the duration of stay, and the purpose of that stay.

What legal differences exist between expats and immigrants?

From a legal standpoint, neither “expat” nor “immigrant” is a defined legal category under Dutch law. The relevant legal distinctions are based on the type of residence permit, nationality, and the purpose and duration of residence. That said, the practical legal differences between someone on a temporary work-related permit and someone pursuing permanent settlement are substantial.

Individuals who come to the Netherlands on a highly skilled migrant permit, often the type associated with “expats”, are admitted under specific conditions tied to their employment. Their right to reside in the Netherlands is generally linked to that employment relationship. If they leave their employer, their permit may no longer be valid, and they must find a new qualifying employer within a defined period or leave the country.

By contrast, those who have obtained a permanent residence permit or Dutch citizenship are not subject to these employment-linked conditions. They may live and work in the Netherlands without restriction, regardless of their employment situation. The path to permanent residence typically requires five years of continuous legal residence, among other conditions.

One important legal instrument that applies specifically to what most people would call “expats”, that is, skilled workers recruited from abroad, is the expat scheme, formerly known as the 30% ruling. This is a tax facility that allows qualifying employers to pay a portion of a foreign employee’s salary tax-free, compensating for the additional costs of relocating to the Netherlands. This scheme is not available to those who have been resident in the Netherlands for an extended period, and it is explicitly a benefit tied to the temporary, internationally mobile nature of the employee’s situation.

How does the Netherlands define and treat expats differently from immigrants?

The Netherlands does not use the word “expat” in its immigration legislation, but it does create a distinct legal and fiscal framework for skilled workers recruited from abroad, which is what most people mean when they say “expat.” This framework treats these individuals differently from long-term immigrants in two primary ways: through the residence permit system administered by the Immigration and Naturalisation Service (IND), and through the tax system.

On the immigration side, the highly skilled migrant scheme (kennismigrant) allows companies to bring in employees with specific expertise that is scarce in the Dutch labour market. The permit is employer-linked and requires the employee to meet a minimum salary threshold. In 2026, this threshold stands at €48,013 per year for most applicants, or €36,497 for those under 30 with a qualifying academic degree. These figures are reviewed and updated annually.

On the tax side, the expat scheme provides eligible employees with a tax-free allowance to offset the extraterritorial costs of working in the Netherlands, costs such as relocation expenses and the higher cost of living. The scheme runs for a maximum of five years. Employees who started using the scheme after 1 January 2024 are subject to updated rules: from 1 January 2027, the maximum tax-free reimbursement will be reduced from 30% to 27% of salary, and a cap based on the so-called Balkenende norm applies.

Long-term immigrants who have settled permanently in the Netherlands do not have access to these schemes. They are treated as ordinary Dutch residents for tax purposes and are not eligible for the expat scheme’s tax-free allowances. In this sense, the Dutch system explicitly distinguishes between the internationally mobile skilled worker and the settled immigrant, even if everyday language does not always do the same.

Does the expat or immigrant label affect employment rights in the Netherlands?

The label itself, “expat” or “immigrant”, does not affect employment rights. What matters is the legal basis on which a person is permitted to work in the Netherlands. Under Dutch law, all employees working in the Netherlands are entitled to the same core labour protections, regardless of their nationality or the type of permit they hold. This includes protections relating to minimum wage, working hours, health and safety, and dismissal procedures.

However, the type of residence and work permit a person holds does affect the practical scope of their employment rights. Consider the following distinctions:

Highly skilled migrant permit holders may only work for the employer named on their permit. If they change employers, specific conditions must be met, and in some cases a new permit application is required.
Holders of a general work permit (TWV) are restricted to the employer and role for which the permit was granted.
Permanent residents and EU/EEA nationals have unrestricted access to the Dutch labour market and may work for any employer without additional permits.
Asylum seekers and status holders operate under separate rules, which are linked to the stage of their asylum procedure.

In terms of the expat scheme, the tax benefit follows the employment relationship rather than the individual. If an employee changes employers, the scheme does not transfer automatically. A new application must generally be submitted, though exceptions apply when the change occurs within a connected group of employers or within three months of leaving the previous role.

When does an expat legally become an immigrant under Dutch law?

There is no single legal moment at which an “expat” formally becomes an “immigrant” under Dutch law, because neither term is a legal category. However, there are specific legal thresholds that mark a meaningful shift in a person’s legal relationship with the Netherlands, moving from temporary, condition-linked residence towards settled, long-term status.

The most significant of these thresholds is eligibility for a permanent residence permit. In most cases, this requires five years of continuous legal residence in the Netherlands. Once granted, permanent residence removes the employment-linked conditions that typically apply to work-related permits, giving the individual the same freedom of movement in the labour market as a Dutch national.

A second threshold is naturalisation, the acquisition of Dutch citizenship. This requires, among other conditions, a longer period of legal residence and proof of integration, including language proficiency.

From a tax perspective, the expat scheme has its own built-in endpoint: it runs for a maximum of five years. Once this period expires, the individual is treated as an ordinary Dutch resident taxpayer, regardless of whether they still consider themselves an “expat.” This five-year limit is one of the clearest legal signals that the Dutch system draws a distinction between temporary international mobility and long-term settlement.

After five years of continuous legal residence: eligibility for a permanent residence permit arises, removing employment-linked conditions on the right to remain.
After expiry of the expat scheme (maximum five years): tax treatment shifts to that of a standard Dutch resident, with no further access to the tax-free allowance for extraterritorial costs.
Upon naturalisation: the individual acquires Dutch citizenship, at which point the distinction between “expat” and “immigrant” becomes legally irrelevant.

The precise timing and conditions for each of these transitions depend on individual circumstances, including the type of permit held, periods of absence from the Netherlands, and compliance with the relevant requirements. Professional legal advice is recommended when approaching any of these thresholds.

How Russell Advocaten Can Help Expats in the Netherlands

Navigating the legal landscape as an expat in the Netherlands involves more than understanding terminology. Whether the question concerns residence permits, employment contracts, the expat scheme, or longer-term settlement, the practical and legal implications are significant and often interconnected.

Russell Advocaten’s expat legal services are built around the realities that internationally mobile professionals and businesses face in the Netherlands. As an internationally oriented law firm with more than 80 years of experience, Russell Advocaten assists expats across a broad range of legal matters, including:

Advice on residence and work permits, and what is required based on nationality, purpose, and duration of stay
Guidance on employment contracts and Dutch labour law protections
Support with setting up a business in the Netherlands
Advice on renting a house in the Netherlands as an expat, including tenant rights and lease negotiations
Family law matters that arise when relocating internationally
Guidance on the expat scheme (formerly the 30% ruling) and its implications for employer and employee alike

Russell Advocaten’s lawyers communicate fluently in English, German, and Dutch, a practical advantage for expats in Amsterdam and across the Netherlands who require clear, reliable legal counsel without language barriers. The firm is an official partner of IN Amsterdam, the expat centre of the City of Amsterdam, and is recommended by The Legal 500 for the quality of its legal services.

Whether you are just arriving in the Netherlands or approaching a significant legal threshold in your residency, professional advice tailored to your specific situation makes a meaningful difference. The information in this article is general in nature and does not constitute legal advice for your specific circumstances. For personalised guidance, contact Russell Advocaten directly.

This information is general in nature and does not constitute legal advice for your specific situation. Please consult a lawyer at Russell Advocaten for advice tailored to your circumstances.

Veelgestelde vragen

Can I switch from a highly skilled migrant permit to permanent residency without leaving the Netherlands?

Yes, in most cases you can apply for a permanent residence permit without leaving the Netherlands, provided you have completed five years of continuous legal residence and meet the other applicable conditions, such as passing the civic integration requirement. It is important that your residence has been uninterrupted and that any periods abroad have not exceeded the permitted limits, as extended absences can reset or pause the five-year clock. A lawyer can review your residence history and advise whether you meet the continuity requirements before you apply.

What happens to my expat scheme (30% ruling) if I change jobs?

The expat scheme does not transfer automatically when you change employers. Your new employer must submit a fresh application to the Dutch Tax and Customs Administration (Belastingdienst), and your eligibility will be reassessed. However, if you change jobs within three months of leaving your previous role, or move to a connected employer within the same group, the transition rules may allow continuity of the benefit without restarting the five-year period. Acting quickly and seeking employer cooperation is essential to avoid an unintended gap in coverage.

If I have been living in the Netherlands for several years, can I still qualify for the expat scheme?

Eligibility for the expat scheme depends partly on where you lived before taking up employment in the Netherlands. As a general rule, you must have lived more than 150 kilometres from the Dutch border for at least 16 of the 24 months preceding your first working day in the Netherlands. If you already lived in or near the Netherlands before your current role, you are unlikely to qualify, even if you hold a highly skilled migrant permit. The scheme is specifically designed for internationally recruited employees, not for those who were already resident in the country.

Does my family members' legal status differ from mine if I am in the Netherlands on a work permit?

Family members who join you in the Netherlands on the basis of family reunification typically receive a dependent residence permit, which is linked to your own permit rather than to an independent employment relationship. This means their right to remain is generally tied to your continued legal residence and, in some cases, to your relationship status. Dependent permit holders are usually entitled to work in the Netherlands without a separate work permit, but it is worth verifying the specific conditions attached to their permit, as these can vary depending on the type of permit you hold and their nationality.

What are the most common mistakes expats make when approaching the five-year permanent residency threshold?

The most frequent mistakes include underestimating how periods of absence affect the continuity of residence, failing to maintain a valid permit throughout the entire five-year period, and not meeting the civic integration requirement in time. Some expats also overlook the income requirement, which demands that you have been financially self-sufficient throughout your residence. Starting the preparation process at least six to twelve months before the five-year mark gives you time to identify and address any gaps in your application.

Is there any advantage to formally identifying as an immigrant rather than an expat when dealing with Dutch authorities?

Dutch authorities do not use either label as a legal category, so the terminology you use has no direct effect on how your case is assessed. What matters is the type of permit you hold, the purpose of your residence, and your compliance with the applicable conditions. That said, if your circumstances have shifted from temporary, employment-linked residence towards long-term settlement, it may be strategically relevant to pursue a permit category that better reflects your actual situation, such as applying for permanent residency, which carries fewer conditions and greater stability.

How does the reduction of the expat scheme from 30% to 27% from 2027 affect financial planning for existing users?

Employees who began using the expat scheme after 1 January 2024 will see their maximum tax-free reimbursement reduced from 30% to 27% of their taxable salary from 1 January 2027 onwards. In practical terms, this means a modest but real reduction in net take-home pay for those still within their five-year eligibility window at that point. It is advisable to revisit your financial planning and employment contract terms in light of this change, particularly if your contract was negotiated on the assumption of the 30% rate. Employers and employees may wish to discuss how the difference will be handled contractually.

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