The Netherlands introduced a new work permit last year that is still unknown to many. The program name is Essential Start-up Personnel and it will be a pilot program. As an employer, if you have an innovative and scalable start-up, and you want to attract international talent you could do it easily now. On the other hand for the foreign workers, from 1 June 2021, the residence scheme ‘Essential start-up personnel’ gives you the opportunity to more easily work in the Netherlands with specific high-quality expertise. The new work permit will cost up to €345. for a foreign worker.
This new residence scheme is based on employee participation of 1% in the start-up company. With this form of remuneration, the new scheme is in line with the remuneration structures that are common within the start-up ecosystem. The residence scheme is part of a pilot that will run for 4 years from 2021 to 2025. The scheme for the residence permit will continue for 1 year after the pilot.
Requirements for residence permit essential start-up personnel
The main conditions for the residence permit essential start-up personnel are:
- A maximum of 15 employees work for this company.
- The employee will work in paid employment at a start-up, innovative and scalable company.
- The employee receives a salary that is at least equal to the reduced salary criterion for highly skilled migrants. It should be Gross income per month without a holiday allowance of €2,543.
- A maximum of 5 foreign employees of the start-up will receive a work permit.
- The employee receives employee participation in the form of shares, certificates, or (virtual) options equal to at least 1% of the capital in the start-up company.
- The employee receives this share as:
- Shares in the company;
- Depository receipts for shares in the company;
- Stock options. A stock option is the right to buy shares in the company. The price for these shares is agreed upon in the contract.
- The employee receives the shares at the latest 3 years after the contract has started.
- The employee is always entitled to the shares. There are no conditions for this, such as delivering certain performances.
- You have a valid passport or another travel document. A child may be included in the passport of one of the parents.
As an applicant, you must also meet the following conditions:
- You sign an antecedents certificate. The antecedents certificate can be found in the application form. In this certificate, you provide information on your criminal record. You state, for example, that you have not committed any crimes. You also state that you have not submitted any incorrect information, nor have you stayed in the Netherlands illegally. The certificate does not need to be filled in by children under the age of 12.
- After having arrived in the Netherlands, you will undergo a medical test for tuberculosis (TB). You are exempt from having to undergo a TB test in many certain conditions.
How to apply for the new work permit?
The application can either be submitted by the employer or the employee. The IND advises that the start-up or facilitator applies in the Netherlands. This saves the employee travel costs to the Dutch embassy or consulate.
If startup applies for a work permit:
The start-up (company) or authorized representative of the start-up applies for a residence permit from the Immigration and Naturalization Service (IND).
For the assessment of the application, the IND asks RVO for advice about:
- The innovative character, scalability, financing, and financial continuity of the company;
- The role that the employee to be recruited will fulfill within the company;
- The structuring of employee participation.
Positive advice from RVO is necessary to obtain a residence permit. The IND assesses the financial resources.
If the employee applies for a work permit:
The employee apply themselves at the Dutch embassy or consulate in the country of origin or the country of continuous residence
The embassy or consulate sends the application to the IND. After the application, the embassy or consulate sends a letter explaining how to pay the fees.
Employee contract details
IND makes sure that as an applicant you have received a working contract from the startup. The agreement is tested on:
- the nature of the work.
- the agreed form of employee participation and any conditions attached to it.
- the length of any agreed period during which the employee participation becomes unconditional.
- a substantiation by the entrepreneur on the basis of which the possible (exercise) price of the employee participation is based.
- signature by both parties (company and key staff member).
Some good startups in the Netherlands
1. Picnic
- Year founded: 2015
- HQ: Amsterdam
- Size: 251 – 500
- Founders: Frederik Nieuwenhuys, Joris Beckers, Michiel Muller
2. ZIVVER
- Year founded: 2015
- HQ: Amsterdam
- Size: 101 – 250
- Founders: Alwin Schoemaker, Jeroen Diederix, Rick Goud, Vincent van Donselaar and Wouter Klinkhamer
3. Coolblue
- Year founded: 1999
- HQ: Rotterdam
- Size: 1001-5000
- Founders: Bart Kuijpers, Paul de Jong en Pieter Zwart
4. VanMoof
- Year founded: 2008
- HQ: Amsterdam
- Size: 51-500
- Founders: Taco Carlier and Ties Carlier
5. fonQ.nl
- Year founded: 2002
- HQ: Utrecht
- Size: 101 – 250
- Founders: Patrick Kerssemakers
6. Project Cece
- Year founded: 2019
- HQ: Amsterdam
- Size: 1-10
- Founders: Marcella Wijngaarden, Melissa Wijngaarden, and Noor Veenhoven
7. Wonderkind
- Year founded: 2016
- HQ: Amsterdam
- Size: 51 – 100
- Founders: Lars Wetemans and Laurent Scholten
8. OneFit
- Year founded: 2013
- HQ: Amsterdam
- Size: 51 -100
- Founders: Camille Richardson and Serge Brabander
9. Peerby
- Year founded: 2011
- HQ: Amsterdam
- Size: 11 – 50
- Founders: Daan Weddepohl and Eelke Boezeman
10. Connecterra
- Year founded: 2014
- HQ: Amsterdam
- Size: 11 – 50
- Founders: Saad Ansari and Yasir Khokhar
11. Polarsteps
- Year founded: 2015
- HQ: Amsterdam
- Size: 11 – 50
- Founders: Job Harmsen, Koen Droste, Maximiliano Neustadt and Niek Bokkers
12. Virtuagym
- Year founded: 2008
- HQ: Amsterdam
- Size: 101-250
- Founders: Hugo Braam and Paul Braam
13. Bunq
- Year founded: 2012
- HQ: Amsterdam
- Size: 101-250
- Founders: Ali Niknam
14. The Next Web
- Year founded: 2008
- HQ: Amsterdam
- Size: 51- 100
- Founders: Arjen Schat, Boris Veldhuijzen van Zanten and Patrick Laive
15. WeTransfer
- Year founded: 2009
- HQ: Amsterdam
- Size: 101-250
- Founders: Bas Beerens, Rinke Visser, and Ronald Hans
16. Bynder
- Year founded: 2013
- HQ: Amsterdam
- Size: 251-500
- Founders: Chris Hall and Roland Keijzer
17. Growth Tribe
- Year founded: 2015
- HQ: Amsterdam
- Size: 101 – 250
- Founders: Avid Arnoux, Kees van Nunen, Peter van Sabben, and Quentin Lacointa
18. Adyen
- Year founded: 2006
- HQ: Amsterdam
- Size: 501-1000
- Founders: Pieter van der Does
19. SkinVision
- Year founded: 2012
- HQ: Amsterdam
- Size: 11-50
- Founders: Mircea Popa and Victor Anastasiu
20. Publitas
- Year founded: 2006
- HQ: Amsterdam
- Size: 11- 50
- Founders: Guillermo Sanchez and Khalil Seyed Mehdi