Wealthy immigrants, read carefully. With the Modern Migration Policy Act the possibilities of taking up residency in the Netherlands will increase. Pursuant to a new paragraph in the Dutch Aliens Act wealthy aliens may acquire a residence permit to retire in the Netherlands.

The rationale behind this paragraph is that the Dutch economy will receive a boost from the advent of millionaire immigrants. Of course this status will not be awarded just like that. Rich immigrants who wish to acquire a residence permit must have substantial funds. In other words: they must bring a lot of cash, although not literally.

It appears that substantial would mean € 1,250,000 and up. A respectable amount – which has been determined by tying in with the income requirement for highly skilled migrants. Wealthy immigrants may be eligible for a residence permit if the interest revenue from their capital at least equals the annual income of a highly skilled migrant. Although it is not necessary for the money to be parked in the Netherlands, the revenue should be available in the Netherlands.

The policy contains an example based on a 4% effective interest rate. This corresponds with the 4% notional return rate on capital applied by the Tax Authorities. Moreover, the interest revenue is assumed to be at least € 50,000 per annum. This amount more or less equals the annual salary applicable to highly skilled migrants aged 30 and over in 2010. (For 2011 the annual salary for highly skilled migrants aged 30 and over has been set at € 50,619. The amount against which the substantiality of the capital will be tested will therefore be a little higher.)

It is not clear yet whether it will be taken into account that the annual salary for highly-skilled migrants under the age of 30 is significantly lower. For 2011 the annual income for this group of highly skilled migrants has been set at € 37,121. This would mean that wealthy immigrants under the age of 30 are eligible for a residence permit if their substantial capital amounts to € 928,000. Perhaps the drafters of the Modern Migration Policy Act have failed to consider this.

However it is clear that wealthy immigrants fulfilling the financial criterion who wish to take up residency in the Netherlands need not state a specific purpose of stay such as employment or study, nor do they have to pass a civic integration exam abroad. They will immediately receive a residence permit for five years. Moreover, wealthy immigrants are allowed to work in employment or as entrepreneurs without requiring a work permit.

A foreign bank statement showing the substantial capital appears to be adequate proof that the financial criteria for the residence permit have been met. The bank statement must be provided with an authorization of the bank in question legalised by the Dutch embassy or consulate.

How the policy will work out in practice will become apparent once the new Modern Migration Policy Act has taken effect. But it is safe to say that with this policy the Dutch authorities have rolled out the welcome mat for foreign millionaires.

Monirah van Marissing-Knoors

(Read this article in Chinese here.)