The Netherlands is trialling a new residence permit for startup employees. The trial decreases the minimum salary normally required for hiring non-EU employees, removing a hurdle that was often too high for young companies. The minimum monthly salary requirement for companies to hire non-EU staff is currently set at €4,752 (€3,484 for under-30s). For the startup residence permit, this is lowered to €2,497 (valid until 31 December 2021).
As startups often find themselves in need of international expertise and can struggle to compete in a competitive labour market, the permit comes as a helping hand for innovative companies. It is part of a trial that will initially run for four years, with employees who have the permit allowed to stay on for another 12 months after the end of the trial. The permit is not to be confused with the startup visa, which only applies to founders of new startups.
In addition to the reduced salary requirement, the main conditions for utilising the permit are:
The lowered salary combined with the requirement to offer employee participation aligns more closely with startups’ situations and practices than the general residence permit for highly skilled migrants. It is common practice for startups to offer shares in addition to a salary. This is not just to attract talent but also to ensure employees benefit directly from the success of the startup. With the new rule for the residence permit, the IND supports this practice, allowing startups to attract the employees that are essential for the company’s growth.
Find more information at the IND or read other startup insights.
