Federal Council Approves EU Intracompany Transferee Directive
March 31, 2017
Today, the German Federal Council (Bundesrat) approved the implementation of the EU Intracompany Transferee (ICT) Directive. The new law will introduce two new work permit categories – the ICT Permit and the Mobile ICT Permit. The ICT Permit will apply to non-EU/ European Economic Area qualified managers, specialists and graduate trainees temporarily assigned from an entity outside the European Union to an entity in the same corporate group in Germany for a period of over 90 days. The Mobile ICT Permit will apply to those who have an ICT permit issued by another EU country. The law will also introduce more lenient rules for the previous experience requirement and a cooling-off period between assignments. The new law is expected to become effective in July or August.
Admission Criteria
The ICT Permit will be available to managers, specialists and graduate trainees who have worked with the sending entity for a period of at least six months.
Currently, there is no legally defined market salary requirement; however, immigration authorities will impose the same minimum salary requirement for foreign nationals as applicable to local employees in the same position.
Duration of the Assignment
The ICT Permit can be issued for an initial duration of up to three years for managers and specialists and up to one year for trainees. After this initial period, the foreign national must leave Germany and can only apply for a new ICT Permit from their non-EU country of residence after a six-month cooling-off period.
Processing Times
The processing times for the ICT Permit are expected to be between six and eight weeks.
Accompanying Family Members
Qualifying dependents will be able to join the ICT Permit holder for the duration of the assignment in Germany. Dependents who seek to work in Germany do not have to obtain separate work authorization.
Intra-EU Mobility
Under the new law, foreign nationals in possession of an ICT permit issued by another EU Member State will be able to work in Germany for up to 90 days in any 180-day period following a notification process.
Holders of ICT permits issued by another EU Member State who seek to work for over 90 days in any 180-day period in Germany will have to apply for a Mobile ICT Permit in Germany. Market salary requirements will apply to Mobile ICT Permit applicants and to ICT permit holders from other EU countries who travel to Germany for short-term work.
What This Means for Foreign Nationals
The new ICT Permit should benefit eligible foreign nationals who seek to work in several EU countries. Interested applicants should consult their immigration professional about the specific requirements for ICT permits in each EU Member State where they plan to work, as these could vary.
Foreign nationals under the current ICT Permit in Germany who require an extension should consult their immigration professional regarding their options before their permit expires.
This alert is for informational purposes only. If you have any questions, please contact the global professional with whom you work at Fragomen or send an email to [email protected].
