- Foreign Investors Scheme Eligibility Criteria Relaxed
- August 3, 2016
- Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
Proposed changes to the Foreign Investors scheme, a residence permit based on investment of at least EUR 1.25 million in the Netherlands, have been adopted. Key changes include the following:
- The visa duration has increased from one to three years;
- The requirement to obtain a report from an accountant registered in both the home country and in the Netherlands has been eliminated; and
- Foreign investors are only required to meet two of the three existing criteria under the points system (instead of all three, as was previously required). If the investment is not considered innovative, the investor must create at least 10 full-time equivalent (FTE) positions within the first five years after the investment, and six new FTE positions by the time of extension (after three years).
The Foreign Investor’s permit was introduced in October 2013 to allow foreign nationals to obtain residence rights by investing at least EUR 1.25 million in the Netherlands. Currently, there are four possibilities for investment:
- Directly in an innovative Dutch company;
- A contractual joint venture that invests in one or more innovative companies;
- A participation fund affiliated with the Netherlands Venture Capital Association (NVP); and
- A seed fund recognized by the Minister of Economic Affairs.
What This Means for Employers and Foreign Nationals
The changes should allow more investors to become eligible for the Foreign Investors scheme, since the requirement that the investment be innovative has deterred many investors, as has the previously-short permit duration.