Netherlands proposes restrictions on assignment of highly skilled foreign nationals by Dutch companies

The Dutch Minister of Asylum and Migration recently proposed restrictions and additional obligations for recognized sponsors that assign knowledge migrants (i.e., highly skilled workers) to other Dutch employers on a commercial basis. In addition, the Minister provided an update regarding the introduction of measures to prevent unwanted knowledge and technology transfer via knowledge migrants and recognized sponsors. Dutch entities can hire knowledge migrants only if they have registered with the Dutch immigration authorities as a recognized sponsor. Companies that are not recognized sponsors may hire foreign knowledge workers via employment/payroll outsourcing agencies that are recognized sponsors. In these cases, the knowledge migrant is directly employed by the agency, remains on its payroll and provides services to the hiring company as a contractor.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.