Residence permits for highly skilled migrants in the Netherlands: what happens next?
Introduction
The topic of labor migration has been on the Dutch Parliament’s agenda since the national elections in November 2023. On the 4th of September 2024, there will be a Committee Debate on labor migration.[1] Such a Debate can eventually lead to new legislation. The liberal VVD is the third largest party in the Dutch House of Representatives with 24 out of 150 seats. The VVD is also part of the current Dutch government. Therefore, successfully applying new restrictions on residence permits for highly skilled migrants could depend on support from the VVD.
Recently, the VVD elaborated its new view on labor migration in the Netherlands.[2] The VVD wants to help employers in bringing highly skilled migrants to the Netherlands. However, the VVD, at the same time, also wants to tighten and increase requirements for the residence permits of highly skilled migrants. This is a new stance from the VVD compared to the past wherein they would advocate against restricting labor migration.
The question that arises is: Following the VVD’s new stance on migration, what are the chances that the Dutch government will tighten and increase conditions about residence permits for highly skilled migrants? This blog aims to answer the question by firstly discussing the 30% scheme. Secondly, the blog focuses on the current requirements for residence permit of highly skilled migrants. In relation to that, the blog highlights three of the VVD’s recent ideas on regulating migration of highly skilled migrants. For the purposes of this blog, the focus will be on migration policy regarding highly skilled migrants from outside the EU.
Will the Dutch government further scale down the 30% scheme?
The 30% scheme is laid down in Article 31a paragraph 8 of the Wage Tax Act 1964. The scheme is meant to compensate highly skilled migrants for example, for travel expenses and furnishing their homes in the Netherlands. However, the Dutch government restricted the 30% scheme since the start of 2024. Highly skilled migrants who apply for the current 30% scheme in 2024, now receive their income with 30% tax free during the first 20 months. After those 20 months, highly skilled migrants receive 20% of their income tax free. For the last 20 months, highly skilled migrants obtain 10% of their salary tax free. This negative break down did not apply before the restrictions.
These restrictions make it less attractive for employers to hire highly skilled migrants from outside the EU.[3] That is why reversing the cut back of the 30% scheme would facilitate the necessary migration of highly skilled migrants to the Netherlands. This has also been endorsed by the VVD.[4] It is to be expected that the 30% scheme will (partially) return in its original form as of 2025.[5]
What salary & level of education requirements apply to highly skilled migrants?
Besides being employed by a recognized sponsor, a person must meet a certain salary requirement in order to obtain a residence permit as highly skilled migrant. On the basis of Article 2.1. of the Implementation decision Foreign Nationals Employment Act 2022, a highly skilled migrant must earn at least €3.909 gross per month excluding the holiday allowance if (s)he is below 30 years old. Otherwise, (s)he has to earn at least €5.331 gross per month excluding the holiday allowance. The VVD wants to increase these amounts step by step, though it is unknown how much the increase would be.[6]
Up until 2024, a highly skilled migrant does not have to prove that (s)he enjoyed a minimum level of education. The VVD suggests adding a minimum level of education as a requirement for the residence permit of highly skilled migrants, again without mentioning any specifics.[7] Implementing this type of requirement, would mean that the Alien Circular needs to be amended.
Conclusion
In this blog, the main question was: “Following the VVD’s new stance on migration, what are the chances that the Dutch government will tighten and increase conditions regarding residence permits for highly skilled migrants?” To answer this question, the blog highlighted several laws relating to highly skilled migrants. Namely, the 30%- scheme, the salary requirement, and the potential requirement on level of education that (could) apply to highly skilled migrants.
Given the opinion of employers and the VVD, the Dutch government will probably restore the 30%-scheme into its earlier version. As for the salary requirement and the potential requirement on level of education, it seems unlikely that the Dutch government will make any legislative changes soon. The Committee Debate has yet to take place and would only be the first step in the legislative process. Furthermore, none of the political parties have submitted a law amendment proposal or proposed concrete restrictions for that matter. Thus, chances are minimal that the Dutch government will tighten and increase the conditions in order to obtain a residence permit as a highly skilled migrant.
If you have any questions about the application procedure for highly skilled migrants or other questions related to migration law, please do not hesitate to contact our office. You can contact us via e-mail: info@amice-advocaten.nl and via telephone number: +31(0)30 2300 230.
[1] https://www.tweedekamer.nl/debat_en_vergadering/commissievergaderingen/details?id=2024A04963
[2] https://nos.nl/artikel/2534640-nieuwe-koers-vvd-toch-iets-doen-tegen-arbeidsmigratie
[3] https://www.flexmarkt.nl/algemeen/versobering-30-regeling-pakt-negatief-uit/#:~:text=De%2030%25%2Dregeling%20levert,vullen%20met%20het%20binnenlandse%20arbeidsaanbod.
[4] Page 22 of VVD’s ‘Kiezen wie we écht nodig hebben: Strategische keuzes voor arbeidsmigratie en kennismigratie met toegevoegde waarde voor Nederland.’ Available via: https://www.vvd.nl/wp-content/uploads/2024/08/Visiestuk-VVD-Kiezen-wie-we-echt-nodig-hebben-Thierry-Aartsen.pdf
[5] L. de Vries, ‘30%-regeling: belangrijke wijzigingen per 1 januari 2024’.
[6] Page 18 of VVD’s ‘Kiezen wie we écht nodig hebben: Strategische keuzes voor arbeidsmigratie en kennismigratie met toegevoegde waarde voor Nederland.’
[7] Page 22 of VVD’s ‘Kiezen wie we écht nodig hebben: Strategische keuzes voor arbeidsmigratie en kennismigratie met toegevoegde waarde voor Nederland.’