The Highly Skilled Migrant Program (kennismigrantregeling) was developed to ensure the participation in the Dutch workforce of people working in a certain field of expertise, above a certain annual income level, and in a profession that is rare in the labour market, stands out as one of the issues that companies who want to employ foreign employees in the Netherlands are closely interested in. With this program, the Dutch government aims to improve the quality of the Dutch workforce by granting Dutch work permits and permanent residence permits to citizens of different countries. Therefore, various tax advantages and incentives are provided for companies that want to employ highly skilled migrants in the Netherlands. As Unusual Payroll specialises in payroll services and offers solutions that reduce paperwork for Netherlands-based employers, we compile the details of highly skilled migrant employment in this blog and offer a comprehensive guide.
In this blog, you will find answers to the following questions: “How to apply to the Highly Skilled Migrant Program, “How to employ a highly skilled migrant in the Netherlands”, and “How can a Payroll Company help you with hiring a highly skilled migrant?”.
What is the Highly Skilled Migrant Program?
According to Dutch official sources, highly skilled migrants are professionals with a high level of education who come to the Netherlands to live and work. The Highly Skilled Migrant Program, abbreviated as HSM, is a program that makes it easier for companies to employ highly educated professionals in the Netherlands.
According to data compiled by De Nederlandsche Bank, the Netherlands is among the leading European countries in regarding labour force participation. The Netherlands, where approximately 10 million people are known to be salaried, is positioned as an important destination country for highly skilled migrants. Some estimates suggest that 5,000 to 7,000 highly skilled migrants arrive in the Netherlands each year.
Employing highly skilled migrants makes it easier for companies to benefit from larger, global talent pools and also allows them to benefit from various tax incentives. For example, in the Netherlands, the tax incentive known as the 30% Ruling helps companies reduce their salary costs per highly skilled migrant they employ. In one of our previous blogs, you can find detailed information about the 30% Tax Ruling, where employees are subject to income tax only on 70% of their gross salaries and can collect expenses, such as relocation from their employers.
Who classifies as a highly skilled migrant?
Highly skilled migrants from countries outside the European Union, the European Economic Area and Switzerland who will stay in the Netherlands for more than 90 days need a residence permit. This residence permit application can only be made by an employer. While the residence permit for highly skilled migrants facilitates the immigration process, employees in any sector or speciality providing qualified added value to the Dutch workforce can be considered in this category with their special skills and knowledge.
How can companies employ highly skilled migrants in the Netherlands?
When hiring a highly skilled migrant as an employee seeking a residence permit, the employing company needs to be a recognised “sponsor” by the Dutch Immigration and Naturalization Service (IND). This designation necessitates meeting the criteria for a permanent work permit in the Netherlands. The Dutch government maintains a list of approved sponsor companies eligible to submit applications on their official website. Unusual Payroll’s umbrella company, Unusual Enterprise B.V., is proudly featured on this list.
To be recognised as a sponsor, a company must meet the following conditions:
- Be a registered business in the Netherlands
- Being financially stable
- Applying for IND recognition as a sponsor
- The company's senior management is found reliable by IND
In addition, the employee is expected to have signed an employment contract with the company and the employee's monthly income is expected to be equal to or higher than the specified levels. Minimum income requirements are also periodically updated by the Dutch government and shared on official websites.
How do Payroll Companies facilitate the employment of highly skilled migrants?
Rather than going through the processes of obtaining IND sponsor recognition, companies seeking to hire highly skilled migrants in the Netherlands often opt for another entirely legal approach. Payroll service providers, like Unusual Payroll, emerge as a viable solution, enabling businesses to outsource all the necessary legal procedures and paperwork associated with their employees in the Netherlands. These payroll companies streamline various human resources tasks, including payroll processing, tax deductions, social security compliance, 30% Ruling applications, contract management, and sick leave administration.
A payroll company with sponsorship status employs highly skilled migrants under its roof and rents it to the employer. Thus, while the employee continues to work for his or her employer, the payroll company carries out legal processes such as residence permits, work permits, and the 30% Ruling. This way, businesses can focus on their business by reducing paperwork and legal procedures.
Entrust your highly skilled migrant employment processes to Unusual Payroll
Unusual Payroll offers comprehensive payroll and employer services to companies aiming to bring foreign talents to the Netherlands. Our services encompass various aspects of highly skilled migrant employment, from acquiring the citizenship service number (BSN) to applying for residence and work permits. Contact us today to explore the full range of benefits Unusual Payroll can provide, which extends beyond assisting with tax filing, tax consultation, payroll management, legal compliance, and the utilisation of tax incentives, ensuring a seamless experience for your company.
