Corporate Immigration 2023 Comparisons

Legislation and Policy: EU Level

The Netherlands is a Member State of the EU. This means that the rights provided for in EU law are increasingly becoming the determining factor for the country’s national immigration policies. Notable examples are Directive 2004/38 (on the right of free movement); Directive 2003/86 (on family reunion for third-country nationals); Directive 2003/109 (on long-term residence for third-country nationals); Directive 2009/50 (on highly skilled workers (European Blue Card; EBC) and Directive 2014/66 (on intra-corporate transfer). 

Legislation and Policy: National Level

On a national level, immigration law is in Acts of Parliament: the Immigration Act 2000 (Vreemdelingenwet); the Work by Foreigners Act 1995 (Wet arbeid vreemdelingen); and the Nationality Act 2003 (Rijkswet op het Nederlanderschap). All these acts have secondary legislation, made by the government: the Immigration Decree (Vreemdelingenbesluit); the Decree on the Execution of the Work by Foreigners Act (Besluit uitvoering wet arbeid vreemdelingen); and the Decree on acquisition and loss of Dutch nationality (Besluit verkrijging en verlies Nederlanderschap). Of great practical importance are the policy rules on how the competent government agencies (the Immigration and Naturalisation Service (Immigratie-en Naturalisatiedienst; IND)) and the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen; UWV) must interpret the legislation and exercise discretionary powers; the Aliens Circular (Vreemdelingencirculaire); the Executive Rules to the Work by Foreigners Act (Regeling uitvoering Wav); the Penalty Scheme for the Work by Foreigners Act (Beleidsregels boeteoplegging Wav); and the Guidance to the Netherlands’ Nationality Act (Handleiding bij de toepassing van de RwN). Finally, there are treaties that provide immigration rights – eg, the Treaty of Friendship, Commerce and Navigation between the Netherlands and the USA, the Treaty of Commerce and Navigation between the Netherlands and Japan and the EEC-Turkey Association Agreement.

Government Actors

The central government agency for immigration is the Immigration and Naturalisation Service (IND), an agency of the Ministry for Justice and Security. The agency decides on applications for residence permits, entry visas (MVVs) and recognised sponsor status, maintains the public register of recognised sponsors and is authorised to issue penalties to sponsors who violate sponsor duties. In addition, other government agencies are involved, often in an advisory capacity, such as the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland; RVO) and the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen; UWV), which advises on employability in applications in the Single Permit (GVVA) category. UWV also issues work permits. The Immigration Police and IND supervise the departure of illegal migrants, and the Netherlands Labour Authority of the Ministry of Social Affairs and Employment (Arbeidsinspectie) issues penalties for illegal working.

Structure

The country’s immigration policy distinguishes between:

• citizens and family members of the EU, EER plus Switzerland and others; and
• those entering for 90 days in a 180-day period (visitors) and those entering for over 90 days (residents).

The most notable aspects of these distinctions are:

• citizens of the EU can enter and come to live and work in the Netherlands without any (prior) immigration permission or work permit being required;
• others require immigration permission. Visitors may require a Schengen visa and those who come for work may require a work permit. Residence may require an entry visa (MVV) and will require a residence permit;
• residents must demonstrate they are eligible under a specific immigration category; and
• for the initial five years of residency, most residents will require a sponsor, which can be – eg, an employer, university or family member, depending on their immigration category. 

The most notable upcoming change to the Netherlands immigration laws will be the implementation of the New EU Blue Card Directive.

EU Blue Card

The EU Blue Card is an employment-based residence permit which can be issued to skilled workers from outside the EU to live in an EU Member State for the purpose of skilled employment. Ireland and Denmark do not participate.

New Directive

The basis for this residence permit is Directive (EU) 2009/50 of the European Parliament and of the Council on the conditions of entry and residence of third-country nationals for the purpose of highly qualified employment.

In 2022, the European Parliament and the Council adopted Directive (EU) 2021/1883 which sets a revision of the EU Blue Card scheme to make it more efficient and more attractive. The new directive must be implemented by the participating member states in their national laws by 18 November 2023. In the Netherlands, implementation legislation is in the making.

Changes

The most relevant changes to the EU Blue Card scheme will be:

• the salary threshold will be reduced (for the Netherlands: EUR5,008 or EUR4,006 for those who qualify under the rules for graduates). Currently, this is EUR5,867 for all applicants;
• the salary must be in accordance with the market level salary in the member state for the concerned position;
• applicants without a degree can qualify if they can demonstrate professional qualifications (for IT professionals: three years in the seven years prior to the application);
• the minimum validity of the employment contract will be reduced to six months (currently 12);
• the minimum period of residency in a member state before becoming eligible for long-term mobility will be reduced to 12 months (currently 18);
• the introduction of short-term mobility: EU Blue Card holders are allowed to visit other member states to carry out listed activities without a work permit for a period of 90 days in 180 days;
• the validity of an EU Blue Card will be at least 24 months (currently 12 months), or the duration of the contact plus three months to a maximum of five years (currently four years);
• the processing time will be reduced to 60 days (currently 90 days);
• the processing time will be reduced to 30 days for recognised sponsors;
• EU Blue Card holders can work as self-employed alongside their employment;
• the employing entity must be economically active, and its main purpose cannot be sponsoring migrant workers; and
• EU long-term residents who are former EU Blue Card holders can stay outside the EU for two years rather than one year.

The Netherlands has three schemes available for skilled workers. Applications under these schemes are not subject to a resident labour market test. These are: highly skilled migrant (HSMP); European Blue Card (EBC); and Intra-Company Transfer (ICT). In addition, the Single Permit scheme (GVVA) exempts certain categories of workers and certain occupations from the resident labour market test on grounds that they require a certain capacity or skills which are scarce, such as athletes, performing artists and religious workers. Foreign nationals who do not qualify under these schemes will need to be sponsored under the Single Permit scheme, but their application will be subject to a resident labour market test. 

Citizens of the EU, EEA and Switzerland are allowed to remain in the Netherlands and work in any capacity without any (prior) immigration permission being required. Citizens of the United States, Japan and Bolivia are eligible for a residence permit to work as self-employed if they incorporate a company, invest an amount of at least EUR4,500 and own at least 25% of the company. Citizens of Turkey are eligible for a residence permit as self-employed if they meet specific criteria, related to making sufficient profit and to protecting the Dutch labour market. Others may be eligible for a residence permit as self-employed if they score sufficient points under the points-based system for self-employed or if they qualify for a start-up visa.

Under the above-mentioned categories, applicants who are not citizens of the EU, EEA or Switzerland are not allowed to enter employment for the initial five years of residency, although they can be employed with their own company as a Director-Major Shareholder (DGA). The immigration category for foreign investors, investing an amount of EUR1,250,000 in an innovative business or certain funds will be abolished.

Visitors

Entry and stay

Citizens of the EU, EEA and Switzerland

Citizens of the EU, EEA and Switzerland are permitted to enter as a visitor for a period of three months without having to satisfy any specific conditions. They are able to prolong their stay provided that they meet certain conditions and must then register as residents in the local Population Register. 

Others

Others are subject to the conditions of the Schengen Border Code, which permits a stay of a maximum period of 90 days within any given 180-day period. “Any given” implies a “rolling” 180-day period. A visitor cannot be in the Schengen Area for more than 90 days, counting back 180 days from each day of the stay. This means that only an absence for an uninterrupted period of 90 days allows for a new stay for up to 90 days. Only days in the Schengen Area with visitor status are relevant for the 90-day calculation. Days spent in a Schengen country on the basis of a residence permit or long-stay visa for that country are not included in this calculation, but days in other Schengen countries during that period (where the applicant does not hold a residence permit or long-stay visa) are included. The EC has developed a “Schengen Calculator” tool enabling visitors to calculate their remaining visitor days in Schengen, available for the public at the official website of the European Union. Visitors can be permitted to extend their visitor stay up to another 90 days if there are weighty personal or business reasons, however, this additional stay is limited to the territory of the Netherlands. In addition, the Netherlands has bilateral agreements with certain countries, permitting citizens of those countries a visitor stay of three months. This permits a visitor who has used Schengen days in other Schengen countries to remain in the Netherlands for a full three months. 

Work

Permitted activities as a business visitor

Citizens of the EU, EEA and Switzerland are permitted to carry out any type of work without a work permit or other authorisation being required.

Others will need a work permit, unless the work they will be carrying out is exempt from this requirement. The following are only the most notable activities, common to general business visitors outside specific categories such as international transport, sports and entertainment, military, education and sciences.

• Business meetings (maximum 13 weeks in 52 weeks; multiple entry) – business visitors are permitted to conduct or attend business meetings. Typically, this will be meetings and discussions regarding the company and its development. Productive activities in the context of the company’s business activities are never considered business meetings.
• Hardware/software (maximum 12 weeks in 36 weeks; single entry) – business visitors are permitted to assemble or repair equipment, machines or devices that were delivered by their home country employer, or to give instructions on how to operate them. Further, business visitors are permitted to install, implement or adjust software that was delivered by their home country employer or to give instructions on how to operate it.
• Exhibition or stand (maximum 12 weeks in 36 weeks; single entry) – business visitors are permitted to prepare, decorate, build or dismantle an exhibition or stand on behalf of a foreign principal.
• Receiving training or instructions (maximum 12 weeks in 36 weeks; single entry) – business visitors are permitted to receive training or to receive operational instructions regarding goods that were manufactured in the Netherlands or services that will be performed in the Netherlands. Training and receiving instructions must be limited to observation, getting accustomed to company culture and receiving instructions in a classroom or in a similar setting that is clearly for instructional purposes (and not for productive work) and under guidance of an instructor/teacher. It must be clear from the setting of the training that it is training and not a group of employees carrying out productive work. This means that the training should not take place at the work floor. Attending meetings for the enhancement of the company culture is also included in this waiver. Please note that the waiver only covers being a recipient of training. It does not cover being a conductor/trainer. Those activities require a work permit.
• Intra EU service provision (notification required).
• ICT permit holder (ICT mobility) – business visitors who are legally residing in another EU Member state on a residence permit as an intra-company transferee, issued under Directive 2014/66, are allowed to visit and work at a company in the Netherlands that is a subsidiary of their employer’s group of undertakings, provided the work is properly notified to UWV.
• Visitors under the International Trade Regulation – business visitors are allowed to work on a project that is admitted to the International Trade Regulation. A project may be admitted to the International Trade Regulation Scheme if there is a product or services delivery contract between a company based in the Netherlands and a company or independent contractor based outside the Netherlands, provided that it is necessary for non-EU workers to carry out work. Upon admission to the International Trade Regulation, visitors employed by the foreign-based company or independent contractor can commence work, provided that the work is properly notified with UWV.

In addition, citizens of the UK are permitted to carry out certain activities listed in the EU-UK Trade Agreement.

The Netherlands’ immigration laws do not contain special rules applying to remote working from the Netherlands, for an employer abroad. Sponsored workers are generally permitted to work from home.

Applicants who are subject to the Civic Integration Programme need to pass the Civic Integration Test. Applicants, subject to the Civic Integration Programme, who need an entry visa (MVV) need to pass the Civic Integration Test Abroad, as a prerequisite, before filing their visa application. The exam is facilitated by the Dutch embassy or consulate covering the applicant’s country of origin or main residence. Applicants who are subject to the Civic Integration Programme who do not need an entry visa need to complete an integration programme within three years from arrival. All foreign nationals applying for permanent residency who are not EU, EER or Swiss need to pass a Civic Integration Test. Further, all foreign nationals applying for Dutch citizenship need to pass a Civic Integration test, regardless of their citizenship. Applicants who are not able to take the test (eg, due to medical circumstances) can sometimes be exempt from having to take the test.

The Netherlands does not have requirements for medical certificates or vaccinations for immigration purposes, but when arriving in the Netherlands after their first admission, applicants for a residence permit must undergo a TB test, unless they are from a country that is listed as exempt.

The employer-sponsored categories have a salary threshold. These are the thresholds for 2023.

HSMP

• 30 years or older – EUR5,008 gross per month (exclusive 8% holiday allowance).
• 29 years or younger – EUR3,672 gross per month (exclusive 8% holiday allowance).
• Graduate scheme – EUR2,631 gross per month, regardless of age (exclusive 8% holiday allowance).

Moreover, the salary must be in accordance with Dutch market levels.

These salary thresholds are amended on 1 January of each year.

EBC

EUR5,867 gross per month (exclusive 8% holiday allowance).

This salary threshold is amended on 1 January of each year.

GVVA

A market level salary (minimum: the legal set minimum wage: EUR1,934.40 gross per month, exclusive 8% holiday allowance).

This salary threshold is amended on 1 January and 1 July of each year.

ICT

A market-level salary. Salaries meeting the HSMP age-based thresholds, inclusive 8% holding allowance, are considered market level.

In the Netherlands, employment-based residence permits which are sponsored by an employer will normally limit the permit holder to work for this specific employer. After five years, the individual can be eligible for an employment-based residence permit allowing work without restrictions, for any employer, however the residence permit will still require an employer to sponsor the permit holder.

The statutory processing times for immigration applications are as follows:

• applications for a residence card for (a family member of) citizens of the EU, EER and Switzerland – six months;
• applications for a residence permit for non-EU/EER/Swiss citizens – 90 days;
• applications for a permanent residence permit as EU Long-Term Resident – six months; and
• applications for a permanent residence permit on national grounds – 90 days.

Applications sponsored by a recognised sponsor are normally processed in two weeks.

Applicants who require an entry visa (MVV) are, in principle, prohibited to enter the country while their application is being processed, however they are allowed to enter for a short stay, provided it is clear from the purpose and duration of their visit that this is not meant to circumvent the entry clearance requirement. Applicants who do not need an entry visa are allowed to enter and leave. Visa-nationals may need a return visa to be able to re-enter the Netherlands after having travelled abroad.

The Netherlands does not have premium processing or other formal procedures to expedite an application. Sponsors who hold recognised sponsor status benefit from an expedited turnaround time for their applications (two weeks rather than the statutory 90 days).

When arriving in the Netherlands, the applicant will need to complete the following post-arrival formalities:

• visiting an IND service centre to provide biometrics (unless biometrics were taken at an embassy of consulate for printing an entry visa (MVV));
• visiting an IND service centre to collect a biometric residence card; and
• visiting the registry of the municipality where they will be living, for the purpose of being registered as a resident in the Population Register.

Individuals who are sponsored by a recognised sponsor may have access to an “Expatcenter”, allowing these formalities to be carried out at one location, during a limited number of appointments.

Applicants or their sponsors need to pay a government filing fee for the processing of their immigration applications. The amounts are fixed and set for each immigration category, each year on 1 January. These are the 2023 fees for an employment-based application: EUR350 for the employee; EUR210 for a partner or spouse; and EUR70 for a minor child. Citizens of San Marino and Israel do not pay government filing fees for entry visa (MVV) applications or TEV applications (combined MVV and residence permit applications). They do, however, need to pay a fee for separate residence permit applications. Citizens of Turkey pay a moderated fee. 

The government filing fee is charged to the applicant. If the foreign national applies for the visa or residence permit, the fee will be charged to the individual. If the application is filed by the sponsor, the fee will be charged to the sponsor. Applications under certain categories (eg, HSMP) must be filed by the sponsor; this is mandatory.

Enforcement

The Dutch authorities will take enforcement action towards individuals or sponsors who violate immigrations laws. The most notable scenarios are:

• visitors who exceed their maximum visitor stay;
• companies or individuals allowing foreign nationals to be working, illegally; and
• sponsors violating sponsor duties.

Government Actors

The government agencies, responsible for enforcement, compliance inspections and authorised to issue penalties for violations, are:

• the Border Police, which inspects foreign nationals entering and departing on overstay;
• the Netherlands Labour Authority of the Ministry of Social Affairs and Employment, which inspects compliance with labour laws, including the Work by Foreigners Act; and
• the IND, which inspects compliance with sponsor duties set out in the Immigration Act.

The Netherlands Labour Authority typically conducts visits, announced and unannounced, and the IND typically runs checks by cross-checking government databases and requesting disclosure of employee documents. The Border Police conducts checks at the Schengen border.

Visitors Exceeding Maximum Visitor Stay

Business visitors who overstay (ie, stay in the Schengen Area as a visitor for over 90 days in any given 180 days’ time window) shall be sanctioned with an order to leave the EU and an entry ban for the EU and the Schengen Area which will be listed in the Schengen Information System (SIS). Normally, an entry ban for overstaying, where the individual does not have criminal antecedents, would be for two years. It is a criminal offence to enter the EU in violation of an entry ban.

Illegal Working

Employers are required to verify the identity of any candidate whom they seek to employ and whether they are permitted to work in the Netherlands on the basis of an appropriate identity document. The Ministry of Social Affairs and Employment has published guidance on verification of identity. If the guidance is properly implemented and executed with the employer, this could mitigate a penalty for illegal working. Employers must submit a copy of their employees’ ID to a labour inspector within 48 hours upon their order.

The following penalties can be imposed for illegal working and additional violations:

• illegal working – EUR8,000;
• failure to provide a copy of ID to enforcement agents within 48 hours – EUR8,000;
• failure to notify work that must be notified – EUR1,500;
• failure to provide the secondary employer with a copy of ID – EUR1,500;
• failure of the secondary employer to verify ID – EUR1,500; and
• failure of the secondary employer to keep a copy of ID on record – EUR1,500.

Employers who are an individual or a foundation or non-profit association which has had work carried out outside a business scope will normally receive a penalty of 50% of the amount. “Outside business scope” means that the work carried out must be non-profit by nature.

The Work by Foreigners Act and the Penalty Scheme permit the Netherlands Labour Authority to lower the amount by 25%, 50% or 75% if there are mitigating factors or to raise the amount by 50%, 100% or 200% in the case of recidivism, depending on the circumstances and the nature of the violation.

Following a 2022 Council of State ruling, the Netherlands Labour Authority is only allowed to impose the maximum fine for illegal work and failure to provide a copy of an employee’s ID to enforcement agents within 48 hours if the employer has intentionally neglected to verify the employee’s identity and right to work. If such a violation is the result of the employer’s gross negligence, the fine must be lowered to 75% of the maximum amount. If there is a normal level of culpability, then the fine must be lowered to 50% of the maximum amount. In case of a reduced level of culpability, the fine must be lowered to 25% of the maximum amount. The Netherlands Labour Authority is required to follow these instructions until it has amended the penalty scheme. In addition, UWV can refuse work permit applications if the person or legal body applying for a work permit has been issued with a penalty in the five years prior to the application. Further, the employer becomes ineligible to sponsor under EU Blue Card for five years and UWV can advise the IND to refuse employment-based residence permits in the GVVA category if the employing sponsor received a relevant penalty in the five years immediately preceding the application.

Violation of Sponsor Duties

For violation of sponsor duties, the IND can impose an informal warning, a formal warning or a penalty. The standard penalty amount is EUR3,000 per violation, which amount can be increased in case of repetition or mitigated if there are mitigating factors.

Sponsors must comply with sponsor duties. Certain sponsor duties apply to all sponsors, whilst others are specific to recognised sponsors.

Sponsor duties applying to all sponsors are the following.

• Reporting duties – sponsors must report certain events to the IND within two or four weeks, such as moving office, termination of employment, departure, and if the migrant worker ceases to meet the conditions for eligibility.
• Record-keeping duties – sponsors must keep documents and information for up to five years after the termination of sponsorship. For employment-related categories, this includes the employment contract or transfer letter and payslips.
• In addition, recognised sponsors must comply with a duty of care, which means that they must ensure a careful recruitment and selection process of migrant workers in the HSMP category and, in the HSMP and ICT categories, provide information to candidates about the conditions for admission and residence and their rights and duties as a migrant worker under the Immigration Act.

In the Netherlands, employers are required to verify the identity of any person carrying out work for them including those they seek to employ and whether the person is allowed to work in the Netherlands. Verification must be carried out vis-à-vis and on the basis of an appropriate, original identity document. The Ministry of Social Affairs and Employment has published a guidance on verification of identity here (only in Dutch).

Dependants

Family members who may qualify as dependants

The spouse, registered partner, unmarried and unregistered partner and children below the age of 18 qualify as dependants. The spouse, registered partner, unmarried and unregistered partner and children below the age of 18 qualify as dependants. Others, notably parents and adult children of the applicant, are normally not considered eligible and must anticipate being refused unless they can successfully invoke Article 8 ECHR regarding the right to respect for family life and private life. The assessment under Article 8 ECHR differs per family member. Special, more lenient rules apply to family members of citizens of the EU, EEA or Switzerland and parents of Dutch children.

Unmarried and same-sex partners

Unmarried and same-sex partners qualify as family members and are treated in the same way as heterosexual married couples.

Labour market access

Under the HSMP, EBC, ICT and self-employment schemes, dependants are permitted to work, in any capacity, without immigration restrictions, provided their sponsoring family member remains sponsored under the concerned schemes.

Children

Under the HSMP, EBC and ICT, children who are dependants have full access to labour. However, they must observe and comply with employment laws on work by children.

See 7.1 Recognised Family Relationships.