State Secretary Klaas Dijkhoff (Security and Justice) is about to amend the self-employment tax plan to give potentially successful foreign startups more time to grow.
Starting Jan. 1, 2016, it will be possible for foreign entrepreneurs, starting up in the Netherlands and using the startup facility, to obtain a residence permit for self-employed persons as soon as they have satisfactorily completed the startup program.
Startups are entrepreneurs who have a good idea and the potential to create jobs. According to Dijkhoff, the object of the amendment is “to give the green light to ambitious, innovative entrepreneurs.”
Foreign startups have been able to use the startup facility since Jan. 1, 2015. Participants have one year in which to make the transition from a good idea to a working business. At the end of that year, they are expected to move on to the self-employment tax plan.
In practice, however, it often takes longer than a year for starting entrepreneurs to fulfill the conditions of the self-employment plan because it often takes them two years to reach the growth phase. The self-employment plan has been amended to avoid a situation whereby promising startups, in which a substantial investment has already been made, would have to leave the Netherlands.