From Bangalore to Brainport: High-Skilled Indian Migration to the Netherlands
Hiring of Indian professionals in the Netherlands may be past its peak says Sunil Mani
(Map of the Netherlands: Courtesy Wikimedia Commons.)
March 15, 2025
By Sunil Mani*
The Netherlands is a relatively small country with a population of 18 million. Over the past two decades, it has emerged as a major destination in the European Union for high-skilled Indian migrants. The country is host to the second-largest population of Indians in Europe, trailing the United Kingdom, India’s former colonial ruler.
In January 2024, more than 89,000 recent migrants from India lived in the Netherlands, with nearly 74,000 born in India and an additional 16,000 born in the Netherlands to one or both Indian-born parents. These Indians are mainly high skilled professionals and their family members. Their population in the country has grown more than three-fold over the past decade – up from 27,000 in 2014.
In addition, there are roughly 200,000 other Indians, known as Hindustani-Surinamese, many of whom have lived in the Netherlands for generations. These migrants, from former Dutch colonies, also maintain ties to their Indian heritage.
Recent Indian migrants to the Netherlands move for family, employment, or education: in 2023, for instance, 45% migrated for family, 40% for jobs, and 15% for education. These Indians are found mainly in Amsterdam, Eindhoven. Amstelveen and the neighbouring town of Uithoorn.
Many Indians work in the information technology (IT) sector, mainly concentrated in Eindhoven's "Brainport" region. It is one of Europe's leading technology hubs, with several high technology companies and leading advanced science, technology, engineering and medical (STEM) education institutions.
The Eindhoven municipality, with a population of nearly 250,000, has experienced rapid growth largely due to the influx of foreign migrants, especially Indians. In 2024, for instance, Indians accounted for nearly a quarter of the 1,100 people granted Dutch citizenship in the municipality.
The Dutch economy grapples with chronic shortages of skilled labour, especially those with information technology, artificial intelligence, scientific research, and renewable energy skills. To bridge this gap, ASML Philips, Booking.com and other companies which operate in The Netherlands, actively recruit Indians.
The migration of Indians to the Netherlands is part of a broader trend of professionals in India - as well as other laborers - eager to find jobs anywhere in the world. In India, good jobs and career opportunities are limited even for most with advanced STEM skills, resulting in intense competition and low salaries.
For instance, India produces over a million engineering graduates annually. Most of them are of varying quality given the acute lack of trained faculty and facilities. Even some of the roughly 11,000 top engineers, who graduate annually from the world-renowned Indian Institutes of Technology, cannot find well-paying careers in India
Recent Indian migrants take one of three main routes to the Netherlands. The first is education, where Indian students pursue a Master’s or doctoral degree. The second is the employment route, with Indians being hired directly by companies. The third route involves intra-company transfers, where India-based employees of global or Indian multinational companies, are transferred to jobs in the Netherlands.
There are roughly 10,000 Indian students pursuing advanced degrees in the Netherlands, mostly in the STEM fields. The top universities include TU Delft, TU Eindhoven. Utrecht, Twente, and Groningen. In 2024, the Dutch universities admitted around 3,500 Indian students.
In August 2023, at TU Delft, Indians accounted for roughly 700 MSc students, 220 PhD candidates and 110 faculty members. Indians constitute the university’s second-largest non-EU contingent of Masters and PhD candidates. The current Indo-Dutch science, technology, and innovation agenda – WAH! Water-Agriculture-Health - aligns closely with TU Delft’s research strengths.
For students from outside the European Union, including India, the average annual tuition fee for a master’s program is between €12,000 and €30,000. Living expenses, including boarding and lodging, total around €13,000 per year. So, the total costs to earn a master’s in engineering, which takes two years, ranges from $54,000 to $94,000; and for a master’s in medicine, dentistry, or veterinary science, which take three years, is $81,000 to $121,000. Costs for a bachelor’s degree in applied science, which takes four years, range from $96,000 to $144,000. The costs of advanced and undergraduate degrees in the Netherlands are about a third to half that for similar programs in the United States.
After graduation, non-EU students qualify for a Search Visa. It is valid for a year during which a student can try to find a job in the Netherlands. Almost all non-EU students secure the visa, according to estimates. All students, especially those with non-STEM degrees, may not find a job, and hence not earn any income. So, Indians not finding jobs will incur additional expenses of $15,000 or more for the extra year they spend in the country.
There is little public data on the number of Indian students or Indian professionals hired by companies in the Netherlands or those transferred from India. Many Indians are employed in the pharmaceutical industry, in addition to IT services — two fields where India has an abundance of talented professionals.
Indian migrants, through all three channels, fill a critical gap in skilled personnel in the Netherlands. For instance, ASML, which makes semi-conductor equipment, credits part of its breakthroughs to its diverse, international workforce, which includes a sizeable Indian contingent- Approximately 1,700 Indians are employed at ASML’s Veldhoven office, constituting the largest expatriate group and second only to the number of Dutch employees.
(The Dutch flag: Courtesy Wikimedia Commons.)
Indians, who find jobs in the Netherlands, secure residence permit visas. The visas are valid for the length of the employment contract, but last for a maximum of five years.
The Netherlands offers pathways to permanent residency and Dutch citizenship. To qualify for permanent residency, a migrant must have five years of continuous legal residence, hold a valid non-temporary residence permit, demonstrate financial stability by earning more than €1,450 per month for a single person, pass a civic integration exam, and have health insurance. Additionally, the migrant must not pose a threat to public order and must have a clean criminal record.
The requirements for Dutch citizenship are similar but more stringent: you must have five years of continuous legal residence, or three years if married to a Dutch citizen; pass the civic integration exam; and sign a declaration of solidarity to the country. Dutch citizenship typically requires renouncing your previous nationality, unless you are exempt – for instance, if renunciation is impossible or if you are married to a Dutch citizen. Citizenship grants additional rights, such as a Dutch passport and voting privileges.
Data on the migration of Indian professionals to the Netherlands is available from 1996, when the Central Bureau of Statistics started reporting immigration data.
In 2004, the Dutch government launched the Highly Skilled Migrant Programme (HSMP) to attract global talent. This offered temporary work visas, valid for five years, to highly skilled foreigners, including Indians.
The same year, the government also introduced measures which enabled highly skilled immigrants to receive 30% of their salary tax-free. This reduces their tax burden and compensates them for relocation costs. To qualify, employees must meet minimum annual salary thresholds.
Not surprising that the visa and tax policies made the Netherlands more attractive to skilled foreign professionals. In 2005, immigration of foreign skilled workers nearly doubled to 1,320. The inflow of foreign skilled migrants fluctuated in the following years.
In 2015, the Netherlands launched the Startup Visa Scheme, which was expanded in 2022. It seeks to attract foreign technology entrepreneurs by providing an easier pathway to permanent residency. A business founder does not have to make a minimum investment to qualify for the visa. There is a minimum monthly income requirement which the founder needs to earn: in 2023, it was €1,450 for a single person and €2,200 for a family.
An entrepreneur on a Startup Visa can first transition to a self-employed residence permit. Then, after meeting the five-year continuous residence requirement, apply for a permanent residency visa. Other key conditions include financial stability, integration, and a clean criminal record.
There is no data on how many Indians are on Startup Visas. Indians are working at startups, especially in the technology, financial technology, and sustainable environment fields.
After a period of stagnation, up until 2020, the number of skilled migrants began to rise again in 2021 and 2022. This was partly driven by the post-COVID economic recovery. Also, since 2020, the Netherlands has modified its skilled worker visa policies to position itself as an English-friendly alternative to the United Kingdom, after the U.K.’s exit from the European Union that year.
Amstelveen, located near Amsterdam, is home to the largest community of skilled Indian migrants in the Netherlands. There are roughly 5,000 Indians, accounting for 7% of the municipality’s population. The city has several Indian restaurants and shops selling spices, sweets, and saris. The Indian community organizes social gatherings to celebrate Diwali, Holi, and other festivals.
However, it’s not all roses for Indian migrants in the Netherlands. Often, cultural differences, such as Dutch directness and reserved social norms, clash with Indian attitudes, leading to misunderstandings in the workplace and in neighbourhoods. Language remains another hurdle. Although English is spoken widely, especially in the workplace, proficiency in Dutch is necessary to tackle healthcare, law, and other local issues.
Also, a shortage of housing in Amsterdam’ and Amstelveen makes it harder for Indians to live in those cities. There are reports of racial discrimination against Indians seeking rental housing. The rising population of foreigners has also led to more competition for school and college admissions. The challenges with housing and education have sparked debate, with some Dutch expressing opposition to the rapid influx of foreigners, including skilled Indian professionals.
The Dutch government has taken several measures to reduce the number of foreigners migrating to the country. In 2023, the annual salary threshold to qualify for a work visa was raised to €41,954 for foreign employees; and to €31,891 for those under 30 with a master’s degree.
As a result of this salary limit, the prospects for Indian professionals finding work in the Netherlands have fallen sharply. This is evident from the fact that the annual number of Indians entering the country fell from 14,000 in 2022 to 12,000 in 2023 and further to 9,000 in 2024.
In 2024, the tax benefit, granted to foreign employees, was limited to five years, down from eight years. Also, the tax-free allowance was capped at €233,000. Then, starting this year, immigrants will have to pay taxes on income earned outside the Netherlands. The rational for the new policies is to balance attracting global talent with fiscal responsibility.
The government plans to continue tightening policies on hiring foreigners, which will likely further reduce the number of Indians who will be hired to work in the Netherlands. Indians with highly advanced math, statistics, computer science, and scientific research skills will continue to be in demand, as they are around the world.
*Sunil Mani is a visiting professor, Centre for Development Studies, and Ahmedabad University, both in India. The views expressed are personal. He is currently visiting family in the Netherlands.
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