Download Resource
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
5 min read
The Netherlands for eXtrepreneurs
Being part of the top 5 innovation leaders in Europe, Netherlands is home to a dynamic and supportive startup ecosystem. Hosting a competitive talented workforce, growing tech and fintech industries, along with tax benefits and many incubators and accelerators to nurture a startup’s growth, every step of the way, Netherlands is one of the ideal economies for eXtrepreneurs to explore the European market. Start-ups founded in the Netherlands between 2022 and 2030 are predicted to potentially contribute an estimated €250 billion to €400 billion market capitalization.
With approximately €525 million in venture capital in Q2 2023, compared to previous quarter funding of €420 million, despite stability in business deals, investment in startups remains to be one of the strongest in Europe.
.jpg)
The Netherlands Startup Ecosystem
According to McKinsey and Company, the Netherlands ranks 4th in terms of start-up value creation in Europe, and among cities, Amsterdam is one of Europe’s fastest-growing start-up hubs. The Dutch provide one of the fastest adaptive environments for tech and innovation, thus playing host to a dynamic, flexible and vibrant startup ecosystem. Apart from multiple participants such as VCs, angel investors, accelerators and incubators, the Dutch government has also created various programs such as Techleap, the Innovation Credit Scheme and the Netherlands Point of Entry which help in providing a support structure for eXtrepreneurs to build their business.
The Netherlands Company Formation
Netherlands has a thriving business ecosystem making it an ideal hub for startups and innovative ventures. With a talented work force, various tax incentives, robust infrastructure, strong government support and most importantly it has a favourable tax climate in Western Europe.
Furthermore, it strategic location along with a well connected transport system helps increase efficiency and expand market reach in the European continent.
Overall, Netherlands provides an ideal environment for the growth and development of innovative business ideas.
Download Resource
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
4 min read
Overview
In 2015, the Netherlands implemented a startup visa program offering a residency permit to individuals outside the EU seeking to establish a company. To qualify, entrepreneurs must prove the innovation of their product or service, present a well-defined business plan, secure the endorsement of an approved facilitator (such as TNW), and demonstrate adequate resources for living in the Netherlands. Aspiring founders are granted a one-year timeframe to develop an innovative product or service within the country. Upon the expiration of the visa, foreign startup founders can opt for a residence permit as a self-employed individual, valid for up to two years. Subsequently, they also have the opportunity to apply for Dutch permanent residency after 5 years. According to a press release issued by the Immigration and Naturalisation Service (IND), from 2015 to 2021, close to 1,000 aspiring entrepreneurs with innovative ideas applied for consideration, and 65% of these applications were approved. The applicants hailed from 79 diverse countries, with the majority originating from India (16%), Iran (10%), Russia (8%), and the United States of America (7%).
Highlights
1
Government offers various financial incentives such as tax breaks and grants to support startups and innovation
2
No limit on number of founders who can apply under one Startup Visa
3
Grant of Citizenship easier typically taking less than a year and, in all cases, less than two years
4
Application process will take maximum 3 months
5
Can hire foreign personnel without obtaining permission from the Department of Labour for successful enterprises. (Conditional on employee ratio to be 70:30 for foreign and local respectively)
Eligibility
A
Dutch Startup Visa
- Must operate under the guidance of a facilitator
- The product or service must be innovative and scalable
- Must have a proper drafted business plan
- The eXtrepreneur and facilitator must be registered Netherland’s Chamber of Commerce (KVK’s) Business Register
- Should have sufficient settlement funds (70% of standard amount for a single person as per Minimum Wage Act)
The IND issues a MVV (Temporary Residence Permit) at the back of which it reads “Work as an employee only allowed with a work permit”. This means that the applicant also has to apply for a work permit as well. However, the MVV is a form of TWV (Work Permit) and hence no application for an additional visa or permit needs to be filed.
Note: eXtrepreneurs from Australia, Canada, Japan, Monaco, New Zealand, Vatican City , the UK, the USA, South Korea and Switzerland do not need an MVV (after fulfilling certain conditions)
B
Residence Permit for Self Employed Person
Once a founder applies for the Startup Visa, on qualifying for the same, he obtains a 1-year Dutch Startup Visa, also called the provisional residence permit (MVV). It is to be noted that it is not possible to extend or renew the residence permit as a start-up. Thus, the applicant has to apply for a residence permit for a self employed person (a type of non-temporary residency permit), which has a validity of 2 years.
The following requirements need to be fulfilled:
- The work of the start-up must be of essential interest to the Dutch economy (rated on a points- basis on : Personal Experience, Business Plan and Added value for the Netherlands)
- Must possess a valid passport or any other travel document
- The applicant must meet the income requirements (Minimum Gross profit per month (with holiday allowance) required is € 1,564.47)
- Not a danger to national security or public order
- Have the necessary permits to engage in activities as a self-employed person
One can submit the application via post, within 3 months post travel to Netherlands.
Family members can work without a TWV, in case they are working on a self employed basis.
Renewal
After expiry of the residence permit for a self-employed person, the applicant can renew their visa, in case of which, the following requirements need to be fulfilled:
- Must have a valid residence permit they can still extend;
- Must meet the requirements of the residence permit for a self-employed person;
- Must possess a valid passport or any other travel document
- The applicant’s main residence must be in the Netherlands (Must not be outside Netherlands for more than 6 continuous months and for more than 4 continuous months, 3 years in a row)
- Not a danger to national security or public order
- The applicant has not provided incorrect information or hasn’t concealed information
The application for renewal should be submitted within 3 months from the expiry of the MVV or within 4 weeks from the expiry date of the provisional residence permit along with a letter of explanation.
Permanent Status
Following the expiration of the visa, entrepreneurs running startups can choose to seek a self-employed person's residence permit, which remains valid for up to two years. Subsequently, they also have the opportunity to pursue Dutch permanent residency.
Requirements to be fulfilled
- Must meet the requirements of the residence permit under which the applicant was previously residing in the Netherlands
- Have held a valid Dutch residence permit for 5 consecutive year at the time of application
- Main residence must have been Netherlands during the 5 consecutive year period
- Have extended the residence permit on time
- Passed the civic integration examination and received a diploma
- Gotten registered in the Personal Records Database
Note: A child’s residency for the purpose of the 5-year duration will be considered from the age of 8 years.
A permanent residency has no end date. The PR can be renewed every 5 years.
Process and Timelines
Overview
Highlights
No items found.
Eligibility
No items found.
Renewal
Permanent Status
Process and Timelines
Overview
Highlights
No items found.
Eligibility
No items found.
Renewal
Permanent Status
Process and Timelines
DG Country Comparison ToolTM
CompareQuick peek at the top countries for eXtrepreneurs.
This tool compares the top nations inviting eXtrepreneurs on over 40 vital parameters to provide a holistic view and a comprehensive perspective of the Entrepreneur mobility options, the start up ecosystem and the policy benefits, to be availed.