EXECUTIVE SUMMARY – INVESTORS’ RESIDENCE SCHEMES IN THE

NETHERLANDS

General background

The Netherlands introduced an investor’s residence scheme in 2013, as part of a wider reform of the
Dutch migrant residence application schemes and migration policy 1 to attract migrants that can
make a positive impact on the Dutch economy.2 The legal basis for residence applications is the
Aliens Act3 as further detailed in the Aliens Decree.4 Specific rules for the application of the Aliens
Act are found in the Implementation Guidelines of the Aliens Act.5

The general competent authority for the granting of residence permits is the Minister of Security
and Justice.6 The implementing authority of the scheme is the Dutch Immigration and
Naturalisation Service (IND) which operates under the authority of the Ministry of Security and
Justice, which receives and examines all applications. To check the application investment criteria the
IND relies on the assessment of the Netherlands Enterprise Agency (RVO) under the authority of
the Ministry for the Economy and on the assessment of the Financial Intelligence Unit (FIU) which
checks the origin of the assets of the investor. 7

Conditions and procedure

Conditions
Any third-country national who can invest at least EUR 1 250 000 in a Dutch innovative company
or a joint-venture capital fund,8 or participatory fund,9 or a fund that fits the Dutch Seed
Capital Fund Scheme10 can apply to the Dutch investors’ scheme. The investment amount needs to
be paid at the start of the procedure into a Dutch bank account or a bank account of another EU
Member State, which is supervised by the Dutch National Bank.

The investor has the obligation to be physically present in the Netherlands at least four months in a
twelve-month period.11 Verification of actual residency is a competence of the municipality where
the investor resides.

1
The reform is set out in more details in the following act: Modern Migration Policy Act of 7 July 2010 (Wet Modern
Migratiebeleid), identification number BWBR0027930, available at http://wetten.overheid.nl/BWBR0027930/2013-09-21.
2
Further information can be found on the website of the Dutch government, available at
https://www.rijksoverheid.nl/onderwerpen/immigratie/mogelijkheden-voor-ondernemers-en-werknemers-uit-het-
buitenland/buitenlandse-investeerdersand in the letter to the House of Representatives (Tweede Kamer) prior to the
introduction of the scheme, available at https://zoek.officielebekendmakingen.nl/dossier/30573/kst-30573-120?
resultIndex=28&sorttype=1&sortorder=4
3
Aliens Act of 23 November 2000 (Vreemdelingenwet), identification number BWBR0011823, available at
http://wetten.overheid.nl/BWBR0011823/2017-12-16#Hoofdstuk1 (last amended in 2017).
4
Aliens Decree of 23 November 2000 (Vreemdelingbesluit 2000), identification number BWBR0011825, available at
http://wetten.overheid.nl/BWBR0011825/2017-10-01#Hoofdstuk1 (last amended in 2017).
5
Implementation Guidelines of the Aliens Act (Vreemdelingencirculaire 2000), identification number BWBR0012289,
available at http://wetten.overheid.nl/BWBR0012289/2018-01-01#Circulaire.divisieB11 (last amended in 2017).
6
Aliens Act, Article 14.
7
Implementation Guidelines of the Aliens Act, Section B11.
8
Such as those recognised by the Ministry of Economy to be compatible with the rules on seed funds Regulation concerning
subsidies of the Ministry of Economic Affairs of 11 July 2014 (Wet Regeling nationale EZ-subsidies), identification number
BWBR0035474, available at http://wetten.overheid.nl/BWBR0035474/2018-03-01#Hoofdstuk3_Titeldeel3.10 , Title 3.10.
9
Has to be a fund that is member of the Dutch Association of Investment Companies (Nederlandse Vereniging van
Participatiemaatschappijen). These are private equity or venture capital funds. The investment in such funds aims at
supporting technology start-ups or start-ups falling under the Top Sectors Policy (topsectorenaanpak). Top Sectors Policy
website, available at https://www.topsectoren.nl/topsectoren.
10
As recognised by the Ministry of Economy and administered by the Netherlands Enterprise Agency (RVO) – information
available at https://www.rvo.nl/subsidies-regelingen/seed-capital-voor-investeerders .
11
Implementation Guidelines of the Aliens Act, Section B11.

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Procedure
The procedure consists of one single application stage to obtain the entry visa and the temporary
three-year residence permit. The first application is a paper-based application and needs to be
addressed either to the Dutch embassy in the country of residence, when the investor resides outside
the Netherlands, or, if already residing in the Netherlands, directly to the IND. The application must
be accompanied by a fee of EUR 2,137 and the following documents:
 Valid passport;
 Clean Criminal Record Certificate in which applicants declare that they never
committed a crime (in the Netherlands or abroad), illegally stayed in the Netherlands in the
past and have not given incorrect information in earlier residence procedures;
 Declaration to take a medical test for Tuberculosis and take vaccination (if not already
vaccinated);
 Proof of the investment amount paid into a Dutch bank account or EU bank account
controlled by the Dutch National Bank;
 A presentation of the investment project;
 Agreement of examination of the FIU of the origin of the assets.

The investment project is assessed by the RVO. This assessment is guided by the national legal
framework which provides for a light assessment framework in the form of a ‘yes’ and ‘no’ question
grid.12 To prove that the investment is of additional value to the Dutch economy the investment
must add to innovation in a particular industry, create jobs; and/or the investor brings a high value
personal network or specific knowledge to the Dutch company in which the investment is made.13

If the application is approved, the investor is granted a regular residence permit for a fixed term of
three years which entitles the investor to reside and work in the Netherlands. After three years the
investor can apply to renew the temporary residence permit for five years in total. After that, the
investor can apply for a permanent residence permit or naturalisation. At renewal stage the investor
must prove again that the full amount is being invested and that the investment project progresses.
The initial eligibility requirements are reassessed, including the physical presence.

Applications can be turned down where the IND can justify that the applicable criteria in relation to
the investment requirement and the due diligence checks have not been met. Investors whose
applications are rejected can respond and provide additional elements and explain why they do not
agree with the assessment. On this basis, the IND will provide another reasoned decision. Investors
who continue to disagree with the IND decision can introduce a claim before the administrative courts
within four weeks from notification of the decision.

Security and ex-post checks

The IND has 90 days to examine the application. During this time, the IND carries out due
diligence checks with regard to the applicant. This consists mainly in checking national police
registers and the Schengen Information System, as well as Europol and Interpol databases.

Finally, the FIU carries out a due diligence check on the origin of the investor’s funds. To this end
the FIU seeks the cooperation of the police authorities in the investor’s country of origin. The
investment is only approved if the investor cannot be linked to a case of fraud or corruption. Ex-post
12
The assessment is set out under the Implementation Guidelines of the Aliens Act, Section B11.
13
If the investment is made directly in a specific company, the additional value of the investment is proven in the case that
the company operates in one of the so-called ‘top-sectors’ (this includes: Agri-Food, chemical, creative industries, energy,
high tech systems and materials, logistics, life-science and health, water and maritime, horticulture and propagation materials
sectors). The top-sector policy highlights these sectors as being in particular innovative, helping the Dutch economy to
remain competitive. In addition, the investment should contribute to the creation of employment. At least 10 FTE should be
created within five years. In the application for the scheme, the investor’s project needs to be clear that this criterion can be
fulfilled. The added value of the investment can also be of non-financial value that would help the specific company to
innovate, for example from the investor’s specific know how and demonstrable experience in being a leader or
founder/owner of a company (experience of at least five years and Master level university diploma).

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checks can be carried out to verify that no case of fraud or corruption has been reported in relation to
the investors’ residence scheme.

Family members
Family members (partners and minor children) can also apply for residency in case it has been
successfully granted to the investor. The application can be submitted at the same time or shortly after
the investor obtained the residency.

Monitoring of the proceedings and the authorities involved

There is no cap on the number of applications.

As regards monitoring/scrutiny mechanisms, there are no reporting obligations set out by the Aliens
Act. A certain scrutiny still exists as both Parliamentary Chambers (Eerste en Tweede Kamer der
Staten-Generaal) and the Justice and Home Affairs Council (JHA Council) could ask the Minister of
Security and Justice for information on the number of successful applications. The Ministry of
Security and Justice publishes half-yearly migration trend figures.

Rights
Investors and their family members benefit from the same rights as any Dutch national. These
rights are based on a framework of equal treatment rights in accordance with the Single Permit
Directive 2011/98/EU which applies to all persons legally residing on Dutch territory. No tax or
other benefits apply. They benefit from full access to the labour market without the need to apply
for a separate work permit, except when the investor intends to carry out a self-employed activity. The
investor can be fully active in, but cannot be the owner of, the company in which the investment is
made. The investor’s family members also have access to the labour market and to the same benefits
and rights as the investor.

Other matters

Link to citizenship
After five years of residence, investors can apply for permanent residence or citizenship. For such
purposes, there is no specific procedure for investors who hold a residence permit; the general
rules on permanent residence and citizenship apply as to any other third-country national. To obtain
permanent residency or citizenship the investor has to pass the Dutch integration and language test.
Only then can the investor obtain permission to stay longer in the Netherlands.

Statistics and economic impact

According to the Ministry of Justice’s assessment in 2016, 14 expectations have not been met: the
scheme did not attract a significant number of migrants wishing to invest in the Dutch economy. 15 The
scheme had a very low uptake: 4 residence permits were granted from the start of the scheme until
May 2018 meaning a total of EUR 5 million was invested in the Dutch economy; in April 2018 one
new application was handled which is likely to be approved, and in total 12 applications were lodged.
No information was obtained on the number of family members admitted in connection with the
scheme.

The Dutch residence scheme could be subject to abuse. For instance, the residency condition is
difficult to monitor, and little information was made available by the Ministry with regard to checks
on the investor. However, there are a number of measures in place that could mitigate the risk of
abuse: the situation of the investor is re-assessed after three years; an investor cannot remain longer
than five years in the Netherlands without integration (including language); at least EUR 1 250 000 is

14
Letter of the Minister of Security and Justice to the Dutch House of Representatives of 8 January 2016 ( Brief van de
Staatssecretaris van Veiligheid en Justitie aan de Voorzitter van de Tweede Kamer der Staten-Generaal), available at
https://zoek.officielebekendmakingen.nl/kst-30573-134.html.
15
Interview with the Ministry of Justice, 9 April 2018. The scheme will be again evaluated by end of 2018.

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to be invested in funds or companies where a risk of non-return of the investment is possible; the
impossibility to invest in real estate.

Finally, there seems to be strong political control of migration schemes in the Netherlands. It is
reasonable to expect that should the investment scheme attract an important number of applications
and permit approvals, the system of parliamentary control would require the government to provide
information on the exact investment and return for the Dutch economy.

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