For multinational corporations, it is a common necessity to move employees across borders. A single EU framework for these transfers is established under the Intra-Corporate Transferee (ICT) Directive. In the Netherlands, this system allows non-EU nationals to work temporarily in a Dutch branch while keeping their original employment contract.
Legal framework of the EU
Goal of the directives of the ICT
The Directive harmonizes conditions for intra-corporate transfers, ensuring fair treatment for transferees and promoting EU-wide mobility.
Adoption in the Netherlands
Since November 2016, the Netherlands has applied the Directive through a combined work-and-residence permit (the “Single Permit”).
Qualifiers that are covered under the ICT directive
Supervisors
Senior employees who direct the host entity or a department and supervise other managers.
Experts
Workers with essential technical, business-method, or managerial knowledge are not easily found in the Dutch labour market.
Participants
Graduate-level or experienced employees are sent for career development or training within the same corporate group.
Eligibility criteria
Current work abroad
Applicants must already be employed by the sending entity outside the EU, typically for at least three months.
Extended Agreement with the Sending Party
The employment contract with the foreign company must remain valid during the transfer; the employee does not switch to a Dutch contract.
Time limits
Managers and specialists can stay for a maximum of three years; trainees for one year. After expiry, a cooling-off period usually applies.
Criteria for the salary
Remuneration must meet Dutch “market level” standards, which in practice resemble Highly Skilled Migrant thresholds.
An activity that is economically real
The Dutch host entity must be a genuine part of the corporate group, not a shell company.
Complete record of compliance
Employers should have no recent serious fines under immigration, labour, or social security laws.
Procedure for applying for an ICT Permit
The status of Recognised Sponsor
Becoming a Recognised Sponsorship IND speeds up processing and reduces paperwork.
The application that combines living and work
The employer applies for a Single Permit at the Immigration and Naturalisation Service (IND), which also consults the UWV for labour-market checks.
Supporting papers
Typical documents include proof of employment, qualifications, salary details, purpose and duration of transfer, and legalized translations of foreign records.
The entry visa of MVV
If the employee is outside the Netherlands, a provisional entry visa (MVV) may also be required.
Timings of the Processing
Non-recognised sponsors face up to 90 days of processing; recognised sponsors often see decisions in weeks.
The rights that ICT permits give
Living and employment in the Netherlands
The permit allows the transferee to live and work for the specific host entity defined in the application.
Reunification of the Family
Spouses and dependent children can join the transferee, and spouses usually obtain work rights.
Movement of Intra-EU
Short-term (up to 90 days) and long-term mobility rules allow ICT permit holders to work in other EU Member States with less administrative friction.
The ICT’s limited plan
Temporary environment
The permit is not designed to lead directly to permanent residence and typically does not count toward permanent residence periods.
Advantages that are limited
Some Dutch tax or social-security advantages are unavailable compared to other visa categories.
Some other Dutch permits and ICT
The Highly Skilled Migrant Visa
The highly skilled migrant visa, also known as the Kennismigrant program, is for workers employed under a Dutch contract. It offers longer permits and can lead to permanent residence, but has strict salary thresholds.
The main differences
Under ICT, the employee remains employed abroad and enjoys stronger intra-EU mobility but faces strict time limits. Under the HSM Visa, the employee is hired locally and may build up residency rights, but cannot use the EU-wide mobility of the ICT Directive.
Large-scale strategic considerations
Plan for Sponsor Recognition
Recognition speeds up applications and signals compliance.
Regulate assignment timings
Because of time limits and non-renewability, plan exit or switch strategies before the permit expires.
Carefully consider the salary
Ensure pay meets Dutch market norms to avoid rejection.
Follow the EU mobility regulations
Notify authorities as required for short-term or long-term mobility in other Member States.
Social security and taxes examination
The foreign contract can change entitlement to benefits or trigger withholding obligations in multiple countries.
Family support
Confirm spouse’s work rights and schooling for children before arrival.
Useful guide
- Identify whether the employee is a manager, specialist or trainee.
- Confirm minimum prior employment and ongoing contract with the sending entity.
- Verify the Dutch host is part of the corporate group.
- Obtain recognised sponsor status if possible.
- Gather and legalize all required documents.
- Submit the ICT Single Permit and MVV if needed.
- Register the employee with the municipality and arrange insurance on arrival.
- Track time in the Netherlands to avoid exceeding the maximum stay.
Current developments
The Netherlands implemented the ICT Directive on 29 November 2016. Since then, processes for intra-EU mobility and the Single Permit have been clarified, and recognised sponsors enjoy faster processing.
Some barriers and the danger
Analysis of the role
Disputes can arise over what counts as “specialised knowledge” or “managerial” duties.
Regulations of the documents
Legalization and translation of foreign documents can delay approvals.
Non sustainability
Without a switch strategy, companies risk losing key staff when the permit expires.
Implications of the tax
Certain tax incentives for foreign workers may not apply under ICT.
Sample case
A German multinational wants to transfer an Indian specialist to its Dutch branch for two years to lead a project. The employee qualifies under ICT due to specialised knowledge and prior employment. The company ensures market-level salary, confirms the host entity’s group status, acts as a recognised sponsor, and arranges family reunification. Before the two-year period ends, it plans either to rotate the employee or switch to another permit, such as the HSM scheme if eligible.
Conclusion
While maintaining their international payroll, the ICT Directive provides a simplified method for multinational corporations to temporarily relocate non-EU employees in the Netherlands. It provides the benefits of both the work and the living rights in addition to intra-EU mobility.
Still, it has some strict time limits on documentation requirements and salary expectations. Processes can be easier with the initial planning, sponsor recognition and managing the durations carefully. The Highly Skilled Migrant Visa (HSM Visa) can be a better option for longer-term assignments or a route to permanent residence.
