If you are reading this, you are probably looking into hiring staff from abroad for your Dutch operations. With good reason: your business needs talent, and talent can come from all over the world.

As a small nation, the Netherlands has historically realized that talent knows no borders, and Dutch policy therefore has a track record on open borders: opening ‘access to and for talent’. However, as a welfare state, some checks and balances must be built in to sustain public resource levels and prevent overburdening. So, Dutch policy is open for Talent Migration and Humanitarian Migration.

As a business, you are looking into the former category. One of the ‘checks’ that Dutch Immigrations performs prior to granting access, is an analysis of the incoming individuals’ Dutch ‘economic self-sufficiency’. For prospective employees, this self-sufficiency is largely a given as their immigration path is sparked on a concrete job offering. Dutch access is therefore linked to said employment and its continuation warranties the immigrant’s continued self-sufficiency and, therefore, their Dutch permits. Termination [without a new job in quick succession] on the other hand, would ultimately lead to revocation of said permit status; the immigrant is no longer self-sufficient and has not acted on humanitarian considerations. Therefore, their Dutch angle would end.

In order to certify whether the employing entity will indeed be able to support the employee for the permit time [financial check] and in order to keep track of the immigrant’s employment status after hiring [compliance check], Immigrations need to analyze and ‘align’ the involved employers with a certain framework. This is laid-out and committed to in the ‘Recognized Sponsor’ procedure. By obtaining said status, businesses are then licensed to act as the ‘Recognized Sponsor’ for the immigrating employee’s Visa application procedure; a box that needs to be ticked for access to be obtained.

Needless to say, this procedure is not so much complex, but generally obscure. And as always: there is paperwork involved. Archipel People Services is your partner in navigating these paths, and making sure your talent gets where it needs to be; at your place of business. Smoothly.

Why would you want to become a Recognized Sponsor?

• Becoming a ‘recognized sponsor’ (Dutch: ‘erkend referent’) is a major first step in creating an opening to access the world-wide talent pool;
• As a Recognized Sponsor, you will be able to sponsor so called ‘knowledge migrants’ from abroad to acquire a work visa in the Netherlands for up to 5 years or earlier if the employment is ended before that.

Sounds good. But how?

In order to become a Recognized Sponsor, you’ll have to:

• File an application (form) with the Dutch migration authorities, providing details on the employer
• aiming to be the recognized sponsor;
• Pay the processing fees of € 4.212 (or € 2,105 if the organization is not more than 50 people);
• The decision of the migration authorities will be communicated within 90 days after the request is made.

The requirements

Please note that if the business is younger than 3 years, a more extensive test for its profitability may be required.

• The employer is registered with the Dutch chamber of commerce;
• The employer does not have any backlogs of unpaid taxes or social premiums;
• The employer did not incur any offense fines with respect to tax, migration, or minimum wage legislation in the past four years;
• The directors are reliable, a statement of conduct might be required;
• The employer may not have declared bankruptcy in the past three years.

Learn More About Living, Working and Paying Taxes in the Netherlands

Archipel is a Dutch tax firm in The Hague, they are Tax Tech on the front end, a quality boutique at the back. Archipel Tax Advisors translate between real life and taxation to provide tailor made solutions and a personal approach.

Connect with Richard for tax and financial advice as an expatriate/immigrant in the Netherlands.