Startup visa NL

The Start-up NL visa scheme is an initiative by the Dutch Government that grants temporary residency to ambitious non-EU, non-EEA, and non-Swiss entrepreneurs in order to establish and grow innovative businesses in the Netherlands.

What are the main aims and objectives?

The main objective of Startup Visa NL is to attract foreign investors and entrepreneurs to the Netherlands from outside the EU/EEA region. By doing so it aims to encourage innovation and drive economic growth in the country. The program is also intended to strengthen the Netherlands’ position as a global leader in entrepreneurship and innovation. Overall, the program seeks to bolster the Dutch economy by fostering international collaboration and promoting the development of cutting-edge businesses.

How does the program work?

The startup visa NL allows for non-European ambitious entrepreneurs to start an innovative business in the Netherlands. The temporary residence permit is valid for a year (with plans to raise this to two years announced in 2022). After one year the residence permit can be easily prolonged under the self-employment scheme for two years.

Requirements:

The startup must be guided by an experienced facilitator in the Netherlands. A facilitator can be an accelerator or incubator program or a business angel. The facilitator must be recognized by the government. A full list of approved facilitators is available here.

The product or service must be innovative. The government evaluates the innovativeness (i.e. innovative can be a new product or service, a new technology for production or distribution etcetera).

The startup must have a plan to startup the business (not necessarily a business plan). The plan must contain information on the organization of the startup and the activities the startup undertakes within the first year to set up the business.

The startup and the facilitator are listed in the Commercial Register of the Chamber of Commerce.

The startup has sufficient financial resources to reside and live in the Netherlands for a year. The startup may not rely on public funds such as welfare benefits.

More information about the program can be found here.

What is the overall cost?

The Dutch government does not publish the exact cost of running the Start-up Visa Program. However, there are no major costs associated with visa schemes outside of the administrative costs of processing applications, conducting background checks and maintaining the program’s infrastructure. Indeed, it is highly likely that any costs that do exist will be outweighed by the economic benefits associated with the program. Furthermore, applicants must pay a fee of Applicants must pay a fee of €350 for their application. This fee might help offset some of the administrative costs associated with processing and evaluating applications.

How was it implemented?

The policy was designed and is implemented in collaboration between the Ministry of Security and Justice and the Ministry of Economic Affairs.

The policy was first introduced in 2015 and in 2022 the government decided to extend the Startup Visa scheme for foreign startups from one year to two years after research showed that one year was often too short to set up a startup, particularly in life sciences and medical technology sectors. The State Secretary has also sought to clarify the role of facilitators in the process to deal with an issue whereby facilitators status expired within the first year of the foreign startups time in the Netherlands.

What impact has been measured?

Since 2015:

933 applications have been received from 79 different countries
Most applications came from India (16%), Iran (10%) and the US (7%).
649 applications visas have been granted
Dozens of startups have grown into successful companies with employees

In 2015 the Netherlands granted 21 residence permits out of 95 applications. This equals 13 startups. Most of them come from the United States, Canada and Russia. A third is already legally residing in the Netherlands (mostly with a job search visa). There are 8 facilitators listed and the decision making process takes around 4 weeks.

In 2016 the Netherlands received 86 applications of which 28 residence permit were granted. 12 of the startups who were admitted to the Netherlands in 2015 succesfully renewed their residence permit as an entrepreneur in 2016. There are 11 recognized facilitators listed.

It was indicated that four times a year the Immigration and Naturalization service would inform the two ministries on: how many applications (by individuals) are received, how many residence permits are granted (to individuals) and how many startups this equals, how many applications are denied, the top 5 nationalities, how many applicants are already legally residing in the Netherlands, how many startups prolong their stay under the self-employment scheme, how many facilitators are recognized, the average duration of the decision making process. However, yearly breakdowns since 2016 are not currently available.

What lessons can be learned?

From the early stages of the policy questions have been raised about the duration of the residence permit. The initial policy of 1 year was deemed too short by many as it usually takes 2-3 years for a startup to get traction. After one year the residence permit can be prolonged under the self-employment scheme. However, it was foreseen that the startup still would have trouble passing the points based system. This led to a change in the policy as of 1 January 2016. Now a startup who wishes to prolong their stay in the Netherlands under the self-employment scheme, can submit a declaration from the facilitator. The declaration equals enough points in the points based system immediately. The residence permit under the self-employment scheme is valid for two years. This will be further amended allowing startups 2 years in the initial period.

A further challenge is signing up recognized facilitators. There are now 29 up from 11 originally, but it is estimated there are around 70 potential facilitators.

Critics of the Startup Visa NL have also raised concerns about the stringent requirements for applicants. Entrepreneurs must demonstrate experience, the ability to produce an innovative tech-based service or product, a scalable business model, an international expansion strategy, a dedicated business plan, and sufficient financial resources to reside and live in the Netherlands for two years. These requirements may deter some potential applicants and limit the number of startups that can benefit from the program.

Lastly, while the Startup Visa NL will now offer a two-year temporary residence permit, applicants must switch to the Self-Employment Scheme after one year to qualify for permanent residency. This transition may create additional barriers and bureaucratic hurdles for entrepreneurs, potentially hindering the growth and development of their businesses.

Notes + Additional Context

Immigration and Naturalization Service (specific information on the startup visa and the self-employment scheme)

StartupDelta (information portal on starting, running and growing a business)

StartupBox (tool)