Netherlands: Dutch law on EU Intra-Company Transfer permits takes effect Nov. 29

What is the change? The Netherlands has passed a law implementing the EU Directive on Intra-Corporate Transfers that will change current procedures for multinational companies transferring employees to a Dutch office.

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What does the change mean? A new immigration category will be created for ICTs, and the High-Skilled Migrant Program (HSMP) can no longer be used for ICTs who will remain an employee of the sending company.

  • Implementation time frame: Nov. 29.
  • Visas/permits affected: EU ICT work permit.
  • Who is affected: Non-EU managers, specialists and trainees who are transferred within a multinational company to a Dutch office.
  • Impact on processing times: Decisions on Dutch ICT permits will be rendered in 90 days. Employers who are registered as recognized sponsors with the Immigration and Naturalization Authority (IND) are entitled to fast-track processing of two weeks.
  • Business impact: Employers sponsoring ICTs for the new EU ICT permit will have a higher administrative burden than employers sponsoring foreign nationals under the High-Skilled Migrant Program, but employers who are registered with the IND as sponsors of High-Skilled Migrants are eligible for faster processing of EU ICT permits, as they will only need to provide a company statement.
  • Next steps: Applications will be available on the IND website Nov. 29. Companies sending ICTs to the Netherlands should contact their B·A·L legal team for guidance on the appropriate route for assignees and application procedures.

Background:

  • The EU Directive on Intra-Corporate Transfers creates common procedures for non-EU nationals sent to EU countries as ICTs. The Dutch law includes the following provisions:
  • The EU ICT permit is available for managers, specialists or trainees. ICT permits are valid for a maximum of three years for managers and specialists and a maximum of one year for ICT trainees. Upon expiration, the ICT permit cannot be extended and the transferee must wait six months before requesting a new ICT permit to the Netherlands.
  • ICTs will not need to obtain new work permits when moving to another EU country for short-term visits (up to 90 days within a 180-day period) and will have reduced processing for long-term mobility (more than 90 days within 180 days).
  • Individuals holding EU ICT permits may make visits to the Netherlands of up to 90 days in a 180-day period by notifying the Employee Insurance Agency (UWV). They may make visits of more than 90 days in 180 days to the Netherlands with proof of the EU ICT permit rather than having to file for a new EU ICT permit. They may work immediately.
  • Spouses and children under 21 are eligible for residence permits during the duration of the ICT’s assignment and may work without additional work authorization, including engaging in self-employment.

B·A·L Analysis: The Dutch law on EU ICT work permits will change procedures for ICTs transferred to the Netherlands who are kept on the sending company’s payroll. In these cases – which fall under the scope of the ICT directive – the sending company is not free to apply under HSMP procedures. ICTs who are put on a Dutch payroll, however, may continue to apply under the HSMP. The new law provides greater mobility for ICTs who need to visit or work in additional EU countries during their assignments and provides the right to work for spouses and dependents under 21. ICTs do not accrue any rights towards permanent residence, as their years in the Netherlands are deemed of a temporary nature.

This alert has been provided by the BAL Global Practice group and our network provider located in the Netherlands. For additional information, please contact your BAL attorney.

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