Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer
Date: 2010-07-13
Institutions: European Commission
Subjects: free movement of workers, job mobility, labour law, migrant worker, multinational enterprise, residence permit, social rights, work permit

EN 

EN 

   EN 

 
EUROPEAN COMMISSION 

Brussels, 13.7.2010 
COM(2010) 378 final 

2010/0209 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on conditions of entry and residence of third-country nationals in the framework of an 
intra-corporate transfer 

{SEC(2010) 884} 
{SEC(2010) 885} 

EN 

   EN 

 
 
  
  
EXPLANATORY MEMORANDUM 

1) Context of the proposal 

•  Grounds for and objectives of the proposal 

This proposal forms part of the EU’s efforts to develop a comprehensive immigration policy. 
The  Hague  Programme  of  November  2004  recognised  that  ‘legal  migration  will  play  an 
important role in enhancing the knowledge-based economy in Europe, in advancing economic 
development and thus contributing to the implementation of the Lisbon Strategy’ and asked 
the Commission to present a policy plan on legal migration ‘including admission procedures 
capable  of  responding  promptly  to  fluctuating  demands  for  migrant  labour  in  the  labour 
market’.  

The  subsequent  December  2005  Commission  Communication  A  Policy  Plan  on  Legal 
Migration (COM(2005) 669) provided for the adoption of five legislative proposals on labour 
immigration, including a proposal for a directive on intra-corporate transferees, between 2007 
and 2009. 

The European Pact on Immigration and Asylum, adopted by the European Council of 15 and 
16 October 2008, expresses the commitment of the European Union and its Member States to 
conduct  a  fair,  effective  and  consistent  policy  for  dealing  with  the  challenges  and 
opportunities created by migration.  

The Stockholm Programme, adopted by the European Council of 10 and 11 December 2009, 
recognises that labour immigration can contribute to increased competitiveness and economic 
vitality and that, in the context of the important demographic challenges that will face the EU 
in the future with an increased demand for labour, flexible immigration policies will make an 
important  contribution  to  the  EU’s  economic  development  and  performance  in  the  longer 
term. It thus invites the Commission and Council to continue to implement the 2005 Policy 
Plan on Legal Migration. 

The  proposals  regarding  highly  qualified  workers  (‘EU  Blue  Card’)  and  for  a  general 
Framework Directive were presented in October 20071. The Council adopted the first of these 
proposals  on  25  May  2009;  the  second  one  is  currently  being  negotiated  in  the  European 
Parliament and in the Council. 

In face of the obstacles encountered by businesses in relation to the complexity and diversity 
of  rules,  the  aim  of  this  Directive  is,  in  particular,  to  facilitate  intra-corporate  transfers  of 
skills  both  to  the  EU  and  within  the  EU  in  order  to  boost  the  competitiveness  of  the  EU 
economy, and to complement the set of other measures the EU is putting in place to achieve 
the  goals  of  the  EU  2020  Strategy.  It  is  specifically  aimed  at  responding  effectively  and 
promptly to demand for managerial and qualified employees for branches and subsidiaries of 
multinational companies by setting up transparent and harmonised conditions of admission of 
this  category  of  workers,  by  creating  more  attractive  conditions  of  temporary  stay  for  intra-
corporate transferees and their family and by promoting efficient allocation and re-allocation 
of transferees between EU entities. Achieving this objective would also help to meet the EU’s 
international  trade  commitments,  including  specific  rules  on  intra-corporate  transferees. 

1 

COM(2007) 637 and 638, 23.10.2007. 

EN 

2 

   EN 

                                                 
Promotion of such transnational movements requires a climate of fair competition and respect 
for  the  rights  of  workers,  including  creating  a  secure  legal  status  for  intra-corporate 
transferees. 

•  General context 

As  a  result  of  the  globalisation  of  business,  increasing  international  trade,  the  growth  and 
spread  of  multinationals  and  the  ongoing  restructuring  and  consolidation  of  many  sectors, 
movements  of  managerial  and  technical  employees  of  branches  and  subsidiaries  of 
multinational  corporations,  temporarily  relocated  for  short  assignments  to  other  units  of  the 
company, have become more crucial in recent years. The capacity of businesses to react more 
rapidly  to  new  challenges,  to  transfer  know-how  to  their  future  managers  and  to  harmonise 
qualifications in every country where the company is active, is essential. Developments in the 
organisation of work and allocation within businesses also necessitate increasing mobility. 

However, a number of factors currently limit the scope for international companies to rely on 
mobility  of  intra-corporate  transferees.  Many  multinationals  wishing  to  transfer  their 
personnel  have  run  into  inflexibility  and  limitations,  including  the  lack  of  clear  specific 
schemes in most EU Member States, the complexity of requirements, costs, delays in granting 
visas or  work permits  and  uncertainty  about the rules and procedures. In addition, there are 
big differences between Member States in terms  of conditions of  admission  and restrictions 
on family rights.0 

•  Existing provisions in the area covered by the proposal 

The  existing  EU  instrument  addressing  conditions  for  the  admission  of  intra-corporate 
transferees  in  the  context  of  the  provision  of  a  service  is  the  1994  Council  Resolution  on 
limitations on admission of third-country nationals to the territory of the Member States for 
employment2,  adopted  under  Article  K.1  of  the  EC  Treaty.  This  set  out  definitions  and 
principles governing admission of this category of migrants. 

Directive  96/71/EC  of  the  European  Parliament  and  of  the  Council  of  16  December  1996 
concerning  the  posting  of  workers  by  undertakings  established  in  a  Member  State  in  the 
framework  of  the  provision  of  services  also  has  links  to  the  present  proposal,  as  its 
Article 1(4)  states  that  ‘Undertakings  established  in  a  non-member  State  must  not  be  given 
more favourable treatment than undertakings established in a Member State’. This proposal 
consequently  ensures  that  undertakings  established  in  a  non-Member  State  which  post 
workers to a Member State in the framework of intra-corporate provision of services are not 
given any competitive advantage. 

The EU-25 commitments under the General Agreement on Trade in Services (GATS)3 open 
up the possibility to have recourse to intra-corporate transferees in the services sector and in 
the context of provision of services, typically without an economic needs test, for a maximum 
of three years (for managers and specialists) or one year (for graduate trainees), provided they 
meet  the  requirements  specified  in  the  relevant  schedule,  such  as  prior  employment  for  one 
year. The EU-Chile Association Agreement concluded in 2002 and the Economic Partnership 
Agreement  (EPA)  with  the  CARIFORUM  countries  concluded  in  2008  also  included 
provisions on intra-corporate transfers which are based on those committed under the GATS. 

2 
3 

OJ C 274, 19.9.1996, p. 3. 
See WTO Doc. S/L/286 and S/C/W/273 Suppl. 1 of 18 December 2006. 

EN 

3 

   EN 

                                                 
The  trade  commitments  given  under  the  GATS,  as  well  as  bilateral  agreements,  are  not 
intended to cover exhaustively the conditions of entry, stay and work. 

Council Directive 2003/86/EC of 22 September 2003 lays down the conditions under which 
the right to family reunification can be exercised. The present proposal goes further than that 
Directive in that it provides for more favourable conditions for family reunification. 

The format of residence permits for third-country nationals is laid down in Regulation (EC) 
No 1030/2002 and applies to this proposal. 

Council Directive 2005/71/EC of 12 October 2005 on a specific procedure for admitting third-
country nationals for the purposes of scientific research lays down the conditions of admission 
of third-country researchers to the Member States for the purpose of carrying out a research 
project under hosting agreements with research organisations approved for that purpose by the 
Member State. As there are potential overlaps between the scopes of the two instruments and 
in order to maintain a coherent set of rules for third-country national researchers, the present 
proposal expressly states that it does not apply to third-country nationals who apply to reside 
in  a  Member  State  as  researchers,  within  the  meaning  of  Directive  2005/71/EC,  in  order  to 
carry out a research project. 

Moreover,  the  proposal  for  a  Framework  Directive4,  presented  on  23  October  2007 
(COM(2007)  638),  provides  for  two  exclusions:  people  entering  a  Member  State  under 
commitments made in an international agreement facilitating the entry and temporary stay of 
certain categories of trade- and investment-related natural persons; and third-country nationals 
who are posted, irrespective of whether their undertaking is established in a Member State or 
in  a  non-member  country.  Intra-corporate  transferees,  who  are  seconded  on  the  basis  of  a 
work  contract  with  a  third-country  undertaking  and  encompass  people  entering  a  Member 
State  under  commitments  such  as  those  referred  to  above,  are  therefore  excluded  from  the 
scope of this instrument and are accordingly subject to specific provisions on these aspects. 

The  ‘Blue  Card’  Directive  provides  for  the  same  exclusion  as  the  Framework  Directive  as 
regards the people covered by trade agreements. In addition, applicants must present a work 
contract. Intra-corporate transferees are therefore excluded from its scope. 

•  Consistency with other EU policies and objectives 

Measures to attract highly qualified third-country nationals, such as key staff of transnational 
corporations, are part of the broader framework identified by the EU 2020 Strategy, which set 
the  objective  of  the  Union  becoming  an  economy  based  on  knowledge  and  innovation, 
reducing  the  administrative  burden  on  companies  and  better  matching  labour  supply  with 
demand.  Facilitation  of  intra-corporate  transfers  is  also  an  objective  shared  by  EU  trade 
policy. 

This  proposal  complies  with  fundamental  rights,  especially  Articles  15,  21  and  31  (fair  and 
equal  treatment),  12  (freedom  of  association  and  affiliation),  34  (social  security)  and  7 
(respect for private and family life) of the Charter of Fundamental Rights, as it recognises and 

4 

Proposal for a Directive on a single application procedure for third-country nationals to reside and work 
in the territory of a Member State and a common set of rights for third-country workers legally residing 
in a Member State. 

EN 

4 

   EN 

                                                 
safeguards  the  principle  of  equal  treatment  for  intra-corporate  transferees  and  includes 
procedural guarantees and the right to family life. 

Personal  data  that  authorities  are  required  to  handle  when  implementing  this  proposal  will 
have to be processed in accordance with Directive 95/46/EC on the protection of individuals 
with regard to the processing of personal data. 

2) Consultation of interested parties and impact assessment 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

A  public  consultation  was  conducted  on  the  Green  Paper  on  an  EU  approach  to  managing 
economic migration, including a public hearing on 14 June 2005. 

Further  consultations  were  held  by  means  of  seminars  and  workshops.  Member  States  were 
consulted  in  the  Commission’s  Committee  on  Immigration  and  Asylum.  The  external  study 
commissioned  to  support  the  Impact  Assessment  included  further  consultation  of  the  main 
stakeholders by means of questionnaires and interviews. 

Summary of responses and how they have been taken into account 

Analysis of the 130 contributions sent during the public consultation showed general support 
for  a  common  EU  policy  on  economic  immigration,  albeit  with  big  differences  in  the 
approaches  to  be  followed  and  in  the  expected  end-result.  Another  clear  request  was  to 
propose simple, non-bureaucratic and flexible solutions. As a large number of Member States 
were  not  in  favour  of  a  horizontal  approach,  the  Commission  considered  that  a  sectoral 
approach was more realistic and would respond better to the requests for flexibility. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

The following options were considered: 

Option  1:  Status  quo.  Current  developments  in  Member  States  would  continue  within  the 
existing  legal  framework.  However,  this  would  mean  that  the  EU  as  a  whole  would  not  be 
attractive for enterprises and companies, which would still face difficulties in making best use 
of their staff, although the need for highly qualified internal resources would be increasing.  

Option  2:  Directive  dealing  with  the  conditions  of  entry  and  residence  of  intra-corporate 
transferees.  The  EU  legislation  would  provide  a  common  definition  of  intra-corporate 
transferee, either targeting some specific positions within the transnational corporation, as in 
the  schedules  annexed  to  the  GATS,  or  identifying  key  personnel  through  salary  and 
qualifications  criteria,  as  in  the  Blue  Card  Directive.  It  would  also  lay  down  harmonised 
criteria  for  entry,  a  common  set  of  rights,  a  maximum  duration  of  stay  and  provisions  with 
respect  to  certain  social  and  economic  rights.  This  option  would  create  a  more  transparent 
legal  environment.  However,  the  rules  would  still  vary  between  Member  States  in  terms  of 
procedure and family rights and EU mobility would not be provided for. 

EN 

5 

   EN 

Option  3:  Directive  providing  for  intra-EU  mobility  for  intra-corporate  transferees.  In 
addition  to  the  points  covered  by  option  2,  provisions  would  be  introduced  to  allow  intra-
corporate  transferees  to  move  within  the  EU  and  work  in  several  establishments  located  in 
different  Member  States.  Swift  and  simple  transfer  from  third-country  to  EU  companies 
would, however, not be ensured and family issues would not be tackled.  

Option 4: Directive facilitating family reunification and access to work for spouses. By way 
of derogation from Directive 2003/86/EC, family reunification would not be made dependent 
on obtaining the right of permanent residence and on the intra-corporate transferee having a 
minimum period of residence. Residence permits for family members would be granted more 
rapidly and in respect of access to the labour market, Member States would not be allowed to 
apply  the  time  limit  of  12  months.  As  a  result,  companies  would  be  able  to  attract  intra-
corporate transferees more easily. However, the right to work for spouses could conflict with 
EU preference as expressed in the Acts of Accession. 

Option 5: Directive laying down common admission procedures. A single document allowing 
the  holder  to  work  as  an  intra-corporate  transferee  and  to  reside  on  the  territory  of  the 
Member  State  would  be  issued.  In  parallel,  a  maximum  time  for  processing  applications 
would  be  set  (e.g.  1  month).  This  option  would  significantly  improve  the  ability  to  transfer 
key personnel easily and rapidly and reduce the time and costs for attracting intra-corporate 
transferees.  

Option 6: Communication, coordination and cooperation among Member States. This option 
would  contribute,  to  a  certain  extent,  to  approximating  national  practices  on  third-country 
national  intra-corporate  transferees  across  the  EU  and  creating  a  more  harmonised  legal 
framework.  However,  the  impact  is  likely  to  be  very  limited  if  the  measures  are  not 
mandatory. 

Comparing the options and their impact, the preferred option is a combination of options 2, 3, 
4 and 5. A harmonised definition of intra-corporate transferee and harmonised conditions of 
entry  and  stay,  provisions  ensuring  certain  social  and  economic  rights  (option  2),  intra-EU 
mobility (option 3), enhanced family rights (option 4, without access to the labour market for 
partners)  and  fast-track  procedures  (option  5)  would  contribute  to  better  allocation  of  intra-
corporate  staff  across  third-country  and  EU  entities  and  make  the  EU  more  attractive  for 
third-country national key personnel of multinational corporations, while offering guarantees 
against unfair competition.  

3) Legal elements of the proposal 

•  Summary of the proposed action 

The  proposal  establishes  a  transparent  and  simplified  procedure  for  admission  of  intra-
corporate  transferees,  based  on  a  common  definition  and  harmonised  criteria:  the  transferee 
must  occupy  a  post  as  manager,  specialist  or  graduate  trainee,  as  provided  for  in  the  EU’s 
commitments under GATS; the prior employment within the same group of undertakings must 
have lasted at least 12 months, if required by the Member State; an assignment letter must be 
produced  confirming  that  the  third-country  national  is  transferred  to  the  host  entity  and 
specifying  the  remuneration.  Unless  this  condition  conflicts  with  the  principle  of  Union 
preference as expressed in the relevant provisions of the Acts of Accession, no labour market 
test would be performed. A specific scheme for graduate trainees is envisaged. Intra-corporate 
transferees  admitted  would  be  issued  with  a  specific  residence  permit  (marked  ‘intra-

EN 

6 

   EN 

corporate  transferee’)  allowing  them  to  carry  out  their  assignment  in  diverse  entities 
belonging to the same transnational corporation, including, under certain conditions, entities 
located in other Member States. This permit would also give them favourable conditions for 
family reunification in the first Member State.  

4) Legal basis 

This  proposal  concerns  conditions  of  entry  and  residence  for  third-country  nationals  and 
procedures for issuing the necessary permits. It also lays down the conditions under which a 
third-country  national  may  reside  in  a  second  Member  State.  Consequently,  the  appropriate 
legal basis is Article 79(2)(a) and (b) of the Treaty on the Functioning of the European Union 
(TFEU). 

5) Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the  exclusive 
competence of the Union. The objectives of the proposal cannot be sufficiently achieved by 
the Member States for the following reasons: 

-  The  treatment  granted  to  intra-corporate  transferees  at  EU  level,  combined  with  the 
conditions and procedures regulating such movements, have an impact on the attractiveness of 
the  EU  as  a  whole  and  influence  the  extent  to  which  multinational  companies  decide  to  do 
business or invest in a certain area.  

-  Rigidities  in  transferring  foreign  intra-corporate  transferees  from  one  European  corporate 
headquarters  to  another  are  extremely  important  for  multinational  companies.  Action  at  EU 
level is the only way to remove these rigidities.  

-  A  common  legal  framework  laying  down  common  conditions  of  admission  for  intra-
corporate transferees, including in terms of social and economic rights, would prevent the risk 
of unfair competition. 

-  The  big  differences  between  Member  States  in  terms  of  entry  procedures  and  temporary 
residency  rights  could  hamper  uniform  application  of  the  international  commitments  which 
the EU and its Member States have taken on in the WTO negotiations.  

The proposal therefore complies with the subsidiarity principle. 

6) Proportionality principle 

The proposal complies with the proportionality principle for the following reasons:  

The instrument chosen is a directive, which gives Member States a high degree of flexibility 
when it comes to implementation. 

A  directive  is  the  appropriate  instrument  for  this  action:  it  sets  binding  minimum  standards 
but  gives  Member  States  flexibility  in  respect  of  the  form  and  method  for  putting  these 
principles into effect in their national legal system and general context. Non-binding measures 
would  have  too  limited  an  effect,  as  potential  ICTs  and  their  host  EU  companies  would 
continue to face an array of different rules for admission. 

EN 

7 

   EN 

The  action  is  limited  to  what  is  necessary  to  achieve  the  above  aim.  The  proposed  rules 
concern  admission  conditions,  procedure  and  permit,  as  well  as  rights  of  ICTs,  including 
intra-EU mobility, hence the areas that constitute elements of a common immigration policy 
under Article 79 of the Treaty. The administrative burden imposed on Member State in terms 
of change of legislation (design of specific rules on intra-corporate transfer) and cooperation 
would be moderate as intra-corporate transferees are already singled out by trade instruments 
and  as  this  burden  would  be  outweighed  by  the  large  benefits  flowing  from  the  enhanced 
possibility to easily transfer intra-corporate staff from one Member State to another.  

7) Budgetary implications 

The proposal has no implications for the EU budget. 

8) Additional information 

•  Review/revision/sunset clause 

The proposal includes a review clause. 

•  Correlation table 

The Member States are required to communicate to the Commission the text of their national 
provisions  transposing  the  Directive,  together  with  a  correlation  table  between  those 
provisions and the Directive. 

9) Detailed explanation of the proposal 

Article 1 

The proposal is part of the EU’s efforts to put in place a comprehensive immigration policy, 
including common rules on economic migration. It has two specific purposes. The first is to 
introduce a special procedure for entry and residence and standards on the issue by Member 
States  of  residence  permits  for  third-country  nationals  applying  to  reside  in  the  EU  for  the 
purpose  of  an  intra-corporate  transfer  (Article  79(2)(a)  TFEU).  The  second  purpose  is  to 
implement  Article  79(2)(b)  TFEU  and  define  the  rights  of  third-country  nationals  who  are 
legally  residing  in  a  Member  State  under  the  terms  of  this  proposal  and  determine  the 
conditions under which they may reside in other Member States. 

Article 2 

The  proposal  does  not  cover  EU  citizens  and  their  family  members,  including  those  whose 
eligibility  for  employment  in  a  particular  Member  State  is  restricted  by  transitional 
arrangements.  This  Directive  applies  only  to  third-country  nationals  who  reside  outside  the 
territory of a Member State and apply to be admitted to the territory of a Member State in the 
framework of an intra-corporate transfer.  

As there are potential overlaps between the scopes of the Directive 2005/71/EC of 12 October 
2005 on third-country national researchers and the present instrument, this Article expressly 
excludes  from  the  scope  of  the  Directive  third-country  nationals  who  apply  to  reside  in  a 
Member State as researchers, within the meaning of Directive 2005/71, in order to carry out a 
research  project.  The  present  Directive  also  excludes  persons  who  enjoy  rights  of  free 
movement equivalent to those of EU citizens or are employed by an undertaking established 

EN 

8 

   EN 

in a third country, as well as third-country nationals posted by undertakings established in a 
Member State in the framework of a provision of services in accordance with Article 56 of the 
Treaty  and  Directive  96/71/EC  of  the  European  Parliament  and  of  the  Council  of  16 
December 1996 on the posting of workers in the framework of the provision of services. 

Articles 3 and 4 

The  proposal  defines  the  concept  of  ‘intra-corporate  transferee’.  This  definition  builds  on 
specific EU-25 commitments under the GATS and bilateral trade agreements and is based on:  

-  the  existence  of  a  transnational  corporation,  including  one  or  more  entities  established 
outside the territory of a Member State and one or more entities located in the Member States 
(‘host entities’); 

-  temporary  secondment  of  a  third-country  national  from  the  company  located  in  the  third 
country,  to  which  the  third-country  national  is  bound  by  a  work  contract,  to  an  EU  entity 
belonging  to  the  same  group  of  undertakings.  This  transfer  does  not  necessarily  take  place 
within the services sector or in the context of provision of a service and may originate in a 
third country which is not party to a trade agreement: the scope of this proposal is therefore 
broader than that implied by trade commitments.  

This  Article  also  defines  the  concepts  of  ‘manager’,  ‘specialist’  and  ‘graduate  trainee’.  The 
existing  definitions  are  based  on  the  EU  commitments  schedule  under  the  GATS,  as  these 
definitions are already familiar to the Member States. In addition, the definition of 'graduate 
trainees'  has  been  specified  in  order  to  clarify  that  the  training  should  aim  at  preparing  the 
transferee for managerial positions.  

Other  definitions  are  referring  to  existing  EU  instruments  such  as  Council  Directive 
2003/86/EC or Council Directive 2009/38/EC. 

These  Articles  allow  Member  States  to  maintain  or  introduce  provisions  that  are  more 
favourable  to  third-country  nationals,  provided  they  are  more  favourable  for  the  persons  to 
whom  they  apply.  Member  States  might  wish,  for  instance,  to  apply  more  favourable 
procedures or provisions as regards family members.  

Article 5 

This  Article  lays  down  the  conditions  which  applicants  must  fulfil,  those  specific  to  this 
proposal being as follows. 

Evidence must be provided that the transfer is actually taking place between entities of a same 
group of undertakings. 

As admission is demand-driven, a document describing the tasks assigned and specifying the 
remuneration, which must be in line with the terms and conditions of employment as referred 
to  in  Article  3  of  Directive  96/71/EC,  must  be  produced.  It  usually  takes  the  form  of  an 
assignment  letter.  This  document  must  indicate  the  place  or  places  and  duration  of  the 
assignment  and  provide  evidence  that  the  transferee  is  taking  a  post  in  the  host  entity  as  a 
manager, specialist or graduate trainee. This scheme targets key personnel, as usually defined 
in  the  EU  commitments  on  trade,  as  they  bring  with  them  new  technologies,  innovation,  or 
serve  as  vehicles  to  corporate  culture  in  diverse  locations  and  help  establish  operations  in 
emerging  markets,  resulting  in  the  end  in  an  enhanced  competitiveness  of  EU  business.  In 

EN 

9 

   EN 

order to ensure that the skills of the intra-corporate transferee are specific to the host entity 
and  in  accordance  with  the  EU’s  commitments  on  trade,  there  is  a  possibility  for  Member 
States to require a period of 12 months of prior employment within the group of undertakings. 
As  the  scheme  focuses  specifically  on  temporary  migration,  the  applicant  must  provide 
evidence that the third-country national will be able to transfer back to an entity belonging to 
the same group and established in a third country at the end of the assignment. 

The  third-country  national  must  fulfil  the  conditions  set  under  national  legislation  for  EU 
citizens  to  exercise  the  regulated  profession  specified  in  the  assignment  letter  and,  for  non 
regulated  professions,  present  documents  showing  the  details  of  his  or  her  professional 
qualifications  (usually  the  resume).  For  the  graduate  trainee,  the  applicant  should  provide 
evidence  of  the  higher  education  qualifications  required,  as  provided  under  the  EU’s 
commitments on trade. 

In  addition,  third-country  nationals  who  apply  to  be  admitted  as  a  graduate  trainee  must 
present  documents  proving  that  they  will  benefit  from  genuine  training  and  not  be  used  as 
normal  workers.  Therefore,  a  training  agreement  including  a  description  of  the  training 
programme,  its  duration  and  the  conditions  in  which  the  trainees  will  be  supervised  in  this 
programme is required.  

To facilitate checks, if the transfer involves several locations in different Member States, the 
competent authorities of the ancillary host entities must be informed by the applicant. 

No  labour  market  test  is  required,  since  this  criterion  would  be  in  contradiction  with  the 
purpose of setting up a transparent and simplified scheme for admission of such skilled intra-
corporate  transferees.  In  addition,  for  those  intra-corporate  transferees  who  are  covered  by 
them, this condition would run counter to the EU’s commitments under the GATS and under 
those of bilateral trade agreements. As primary law prevails, for Member States which happen 
to apply a transitional period to new Member States, EU preference must however be applied.  

Articles 6, 7 and 8  

The proposal does not create a right of admission, as this Directive is without prejudice to the 
right of the Member States to determine the volumes of admission of third-country nationals 
entering their territory for the purposes of intra-corporate transfer. However, this right should 
be  used  in  accordance  with  the  commitments  resulting  from  international  agreements 
facilitating the entry and temporary stay of certain categories of trade- and investment-related 
natural persons. 

These  provisions  lay  down  the  mandatory  and  possible  grounds  for  refusal  (as  well  as  for 
withdrawal  and  non-renewal),  notably  failure  to  fulfil  the  criteria  and  sanctioning  of  the 
employer  for  undeclared  work  or  illegal  employment,  in  accordance  with  Directive 
2009/52/EC of 18 June 2009 on sanctions, and the existence of quotas. In the event of non-
compliance  with  the  conditions  laid  down  in  Article  5,  Member  States  should  provide  for 
appropriate  sanctions,  such  as  financial  sanctions,  to  be  imposed  on  the  host  entity,  which 
would be held responsible.  

EN 

10 

   EN 

Articles 9, 10, 11, and 12  

Applicants who fulfil the admission criteria will receive a specific residence permit entitling 
the  holder  to  work  as  an  intra-corporate  transferee  under  the  conditions  specified  in 
Article 14.  No  additional  work  permit  may  be  required.  A  competent  authority  must  be 
designated  by  the  Member  States  to  receive  the  applications  and  issue  the  permits.  This 
designation  will  apply  without  prejudice  to  the  role  and  responsibilities  of  other  national 
authorities  with  regard  to  examining  and  deciding  on  applications.  Furthermore,  this 
designation  to  receive  the  applications  and  issue  the  permits  should  not  prevent  Member 
States  from  appointing  other  authorities  (e.g.  consular  offices)  with  which  the  third-country 
national or the host entity can lodge the application and which can issue the permit.  

The  duration  of  the  residence  permit  will  be  limited  to  three  years  for  managers  and 
specialists  and  one  year  for  graduate  trainees.  A  short  time  (30  days)  is  allowed  to  process 
applications,  accompanied  by  various  procedural  safeguards,  including  the  possibility  of  a 
legal  challenge  against  decisions  rejecting  an  application  and  the  requirement  for  the 
authorities  to  give  reasons  for  such  decisions.  Information  on  entry  conditions  including 
working conditions must be available. 

A fast-track procedure may be set up for groups of undertakings which have been recognised 
for this purpose.  

Articles 13 and 14 

In order to ensure equality of treatment with posted workers covered by Directive 96/71, the 
rights granted to intra-corporate transferees as regards working conditions are aligned on the 
rights  already  enjoyed  by  posted  workers.  This  Article  also  states  the  areas  where  equal 
treatment  must  be  recognised.  Due  to  the  temporary  nature  of  the  intra-corporate  transfer, 
equal  treatment  with  regard  to  education  and  vocational  training,  public  housing  and 
counselling services from employment services were considered irrelevant. Existing bilateral 
agreements continue to apply, in particular in the area of social security. In case of mobility 
between Member States, Regulation (EC) No 859/2003 applies as a rule. The residence permit 
granted to intra-corporate transferees enables them to work, under certain conditions, in all the 
entities belonging to the same group of undertakings. 

Article 15 

This Article contains the derogations from Directive 2003/86 considered necessary in order to 
set  up  an  attractive  scheme  for  intra-corporate  transferees  and  follows  a  different  rationale 
from the Family Reunification Directive, which is a tool to foster integration of third-country 
nationals  who  could  reasonably  become  permanent  residents.  In  line  with  similar  schemes 
already existing in the Member States and in other countries, it provides for immediate family 
reunification in the first State of residence. To achieve this aim, it also stipulates that possible 
national  integration  measures  may  be  imposed  only  once  the  family  members  are  on  EU 
territory.  

EN 

11 

   EN 

Article 16 

This Article provides for geographic mobility for intra-corporate transferees and enables them 
to work in different entities of the same transnational corporation located in different Member 
States  and  on  their  clients’  premises.  Accordingly,  a  third-country  national  who  has  been 
admitted as an intra-corporate transferee may be allowed to carry out part of the assignment in 
an  entity  of  the  same  group  located  in  another  Member  State,  on  the  basis  of  the  first 
residence  permit  and  of  an  additional  document  listing  the  entities  of  the  group  of 
undertakings  in  which  he  or  she  is  authorised  to  work.  The  second  Member  State  must  be 
informed  of  the  main  conditions  of  this  mobility.  It  may  require  a  residence  permit  if  the 
duration of work exceeds twelve months but may not require the intra-corporate transferee to 
leave its territory in order to submit applications.  

Articles 17, 18, 19, 20, 21 and 22 

The usual provisions are laid down on implementation, annual statistics and national contact 
points. 

EN 

12 

   EN 

2010/0209 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on conditions of entry and residence of third-country nationals in the framework of an 
intra-corporate transfer 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 79(2)(a) and (b) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee5, 

Having regard to the opinion of the Committee of the Regions6, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

For  the  gradual  establishment  of  an  area  of  freedom,  security  and  justice,  the  Treaty 
provides for measures to be adopted in the field of immigration which are fair towards 
third-country nationals. 

The Treaty provides that the Union is to develop a common immigration policy aimed 
at  ensuring,  at  all  stages,  the  efficient  management  of  migration  flows  and  fair 
treatment of third-country nationals residing legally in Member States. To that end, the 
European Parliament and the Council are to adopt measures on the conditions of entry 
and  residence,  and  standards  on  the  issue  by  Member  States  of  long-term  visas  and 
residence  permits,  as  well  as  the  definition  of  the  rights  of  third-country  nationals 
residing  legally  in  a  Member  State,  including  the  conditions  governing  freedom  of 
movement and of residence in other Member States. 

(3) 

The  Communication  from  the  Commission  entitled  "Europe  2020:  A  strategy  for 
smart, sustainable and inclusive growth7 sets the objective of the Union becoming an 
economy based on knowledge and innovation, reducing the administrative burden on 
companies and better matching labour supply with demand. Measures to make it easier 

5 
6 
7 

OJ C , , p. . 
OJ C , , p. . 
COM(2010) 2020. 

EN 

13 

   EN 

                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

for  third-country  managers,  specialists  or  graduate  trainees  to  enter  the  Union  in  the 
framework of an intra-corporate transfer should be seen in this broader context. 

The Stockholm Programme, adopted by the European Council at its meeting of 10 and 
11  December  2009,  recognises  that  labour  immigration  can  contribute  to  increased 
competitiveness  and  economic  vitality  and  that,  in  the  context  of  the  important 
demographic  challenges  that  will  face  the  Union  in  the  future  with  an  increased 
demand for labour, flexible immigration policies will make an important contribution 
to  the  Union’s  economic  development  and  performance  in  the  longer  term.  It  thus 
invites  the  Commission  and  the  Council  to  continue  to  implement  the  2005  Policy 
Plan on Legal Migration8. 

As a result of the globalisation of business, increasing trade and the growth and spread 
of multinational corporations, in recent years movements of managerial and technical 
employees  of  branches  and  subsidiaries  of  multinationals,  temporarily  relocated  for 
short assignments to other units of the company, have gained momentum. 

These  intra-corporate  transfers  of  key  personnel  result  in  new  skills  and  knowledge, 
innovation  and  enhanced  economic  opportunities  for  the  host  companies,  thus 
advancing the knowledge-based economy in Europe while fostering investment flows 
across the Union. Well-managed transfers from third countries also have the potential 
to facilitate transfers from Union to third-country companies and to put the Union in a 
stronger  position  in  its  relationship  with  international  partners.  Facilitation  of  intra-
corporate transfers enables multinational groups to tap their human resources best. 

The  set  of  rules  established  by  this  Directive  is  also  beneficial  to  the  migrants’ 
countries of origin as this temporary migration fosters transfers of skills, knowledge, 
technology and know-how. 

This  Directive  should  be  applied  without  prejudice  to  the  principle  of  Union 
preference  as  regards  access  to  Member  States’  labour  market  as  expressed  in  the 
relevant  provisions  of  Acts  of  Accession.  According  to  that  principle,  the  Member 
States  should,  during  any  period  when  national  measures  or  those  resulting  from 
bilateral agreements are applied, give preference to workers who are nationals of the 
Member States over workers who are nationals of third-countries as regards access to 
their labour market. 

(9) 

This  Directive  establishes  a  transparent  and  simplified  procedure  for  admission  of 
intra-corporate transferees, based on common definitions and harmonised criteria.  

(10)  For  the  purpose  of  this  Directive,  intra-corporate  transferees  encompass  managers, 
specialists and graduate trainees with a higher education qualification. Their definition 
builds on specific commitments of the Union under the General Agreement on Trade 
9
in  Services
  (GATS)  and  bilateral  trade  agreements.  Those  commitments  undertaken 
under the General Agreement on Trade in Services do not cover conditions of entry, 
stay and work. Therefore, this Directive complements and facilitates the application of 
those  commitments.  However,  the  scope  of  the  intra-corporate  transfers  covered  by 
this Directive is broader than that implied by trade commitments, as the transfers do 

8 
9 

COM(2005)669. 
WTO Doc. S/L/286 and S/C/W/273 Suppl. 1 of 18 December 2006. 

EN 

14 

   EN 

                                                 
not  necessarily  take  place  within  the  services  sector  and  may  originate  in  a  third 
country which is not party to a trade agreement. 

(11) 

Intra-corporate transferees should benefit from the same working conditions as posted 
workers  whose  employer  is  established  on  the  territory  of  the  European  Union,  as 
defined  by  Directive  96/71/EC  of  the  European  Parliament  and  of  the  Council  of  16 
December 1996 concerning the posting of workers in the framework of the provision 
of  services10.  That  requirement  is  intended  to  protect  workers  and  guarantee  fair 
competition between undertakings established in a Member State and those established 
in  a  third  country,  as  it  ensures  that  the  latter  will  not  be  able  to  benefit  from  lower 
labour standards to take any competitive advantage.  

(12) 

In order to ensure that the skills of the intra-corporate transferee are specific to the host 
entity,  Member  States  may  require  the  transferee  to  have  been  employed  within  the 
same group of undertakings for at least 12 months prior to the transfer.  

(13)  As  intra-corporate  transfers  consist  of  temporary  migration,  the  applicant  should 
provide  evidence  that  the  third-country  national  will  be  able  to  transfer  back  to  an 
entity belonging to the same group and established in a third country at the end of the 
assignment.  That  evidence  may  consist  of  the  relevant  provisions  under  the  work 
contract.  An  assignment  letter  should  be  produced  providing  evidence  that  the  third-
country national manager or specialist possesses the professional qualifications needed 
in  the  Member  State  to  which  they  have  been  admitted  to  occupy  the  post  or  the 
regulated profession. 

(14)  Third-country nationals who apply to be admitted as graduate trainees should provide 
evidence  of  the  higher  education  qualifications  required,  namely  of  any  diploma, 
certificate  or  other  evidence  of  formal  qualifications  attesting  the  successful 
completion of a post-secondary higher education programme of at least three years. In 
addition,  they  must  present  a  training  agreement,  including  a  description  of  the 
training  programme,  its  duration  and  the  conditions  in  which  the  trainees  will  be 
supervised,  proving  that  they  will  benefit  from  genuine  training  and  not  be  used  as 
normal workers.  

(15)  Unless this condition conflicts with the principle of Union preference as expressed in 
the  relevant  provisions  of  the  Acts  of  Accession,  no  labour  market  test  should  be 
required, since this criterion would be in contradiction with the purpose of setting up a 
transparent and simplified scheme for admission of intra-corporate transferees.  

(16) 

In  order  to  facilitate  checks,  if  the  transfer  involves  several  locations  in  different 
Member  States,  the  competent  authorities  of  the  Member  States  where  the  ancillary 
host  entities  are  located  must  be  provided  with  the  relevant  information  by  the 
applicant. 

(17)  This  Directive  should  be  without  prejudice  to  the  right  of  the  Member  States  to 
determine the volumes of admission of third-country nationals entering their territory 
for  the  purposes  of  intra-corporate  transfer  and  not  to  grant  residence  permits  for 
employment in general or for certain professions, economic sectors or regions.  

10 

OJ L 18, 21.1.1997, p. 1. 

EN 

15 

   EN 

                                                 
(18)  Member States should provide for appropriate penalties, such as financial penalties, to 
be  imposed  in  the  event  of  failure  to  comply  with  the  conditions  laid  down  in  this 
Directive. The penalties could be imposed on the host entity. 

(19)  Provision  for  a  single  procedure  leading  to  one  combined  title,  encompassing  both 
residence  and  work  permit,  should  contribute  to  simplifying  the  rules  currently 
applicable in Member States 

(20)  A  fast-track  procedure  may  be  set  up  for  groups  of  undertakings  which  have  been 
recognised for  that  purpose.  Recognition should be granted on the basis of objective 
criteria  made  publicly  available  by  the  Member  State  and  ensuring  equal  treatment 
between applicants. It should be granted for a maximum of three years, as the criteria 
need  to  be  reassessed  on  a  regular  basis.  Such  recognition  should  be  restricted  to 
transnational corporations presenting credentials showing their ability to comply with 
their  obligations  and  supplying  information  about  the  expected  intra-corporate 
transfers.  Any  major  change  affecting  the  ability  of  the  corporation  to  meet  those 
obligations and any complementary information on future transfers should be reported 
without  delay  to  the  relevant  authority.  Appropriate  sanctions  such  as  financial 
sanctions,  the  possibility  of  withdrawing  recognition,  and  rejections  of  future 
applications for permit should be provided for.  

(21)  Once  a  Member  State  has  decided  to  admit  a  third-country  national  fulfilling  the 
criteria laid down in this Directive, the third-country national should receive a specific 
residence  permit  (an  intra-corporate  transferee  permit)  allowing  the  holder  to  carry 
out,  under  certain  conditions,  their  assignment  in  diverse  entities  belonging  to  the 
same transnational corporation, including entities located in another Member State.  

(22)  This  Directive  should  not  affect  conditions  for  the  provision  of  services  in  the 
framework  of  Article  56  of  the  Treaty.  In  particular,  this  Directive  should  not  affect 
the terms and conditions of employment which, pursuant to Directive 96/71/EC, apply 
to  workers  posted  by  an  undertaking  established  in  a  Member  State  to  provide  a 
service  in  the  territory  of  another  Member  State.  This  Directive  does  not  apply  to 
third-country  nationals  posted  by  undertakings  established  in  a  Member  State  in  the 
framework  of  a  provision  of  services  in  accordance  with  Directive  96/71/EC.  As  a 
result, third-country nationals holding an intra-corporate transferee permit cannot avail 
themselves of the provisions of Directive 96/71/EC of the European Parliament and of 
the Council of 16 December 1996 concerning the posting of workers in the framework 
of the provision of services. This Directive should not give undertakings established in 
a  third  country  any  more  favourable  treatment  than  undertakings  established  in  a 
Member State, in line with Article 1(4) of Directive 96/71/EC.  

(23)  Equal treatment should be granted under national law in respect of those branches of 
social  security  defined  in  Article  3  of  Regulation  (EC)  No  883/04  of  the  European 
Parliament and of the Council of 29 April 2004 on the coordination of social security 
systems11. Since this Directive is without prejudice to provisions included in bilateral 
agreements, the social security rights enjoyed by third country national intra-corporate 
transferees on the basis of a bilateral agreement concluded between the Member State 
to  which  the  person  has  been  admitted  and  his  or  her  country  of  origin  could  be 

11 

OJ L 166, 30.4.2004, p. 1. 

EN 

16 

   EN 

                                                 
strengthened  compared  to  the  social  security  rights  which  would  be  granted  to  the 
transferee under national law. This Directive should not confer more rights than those 
already  provided  for  in  existing  Union  legislation  in  the  field  of  social  security  for 
third-country nationals who have cross-border interests between Member States.  

(24) 

In order to make the specific set of rules put in place by this Directive more attractive 
and to allow it to produce all expected benefits for competitiveness of business in the 
Union, third-country national intra-corporate transferees should be granted favourable 
conditions  for  family  reunification  in  the  Member  State  which  first  grants  the 
residence  permit  on  the  basis  of  this  Directive.  This  right  would  indeed  remove  an 
important obstacle to potential intra-corporate transferees for accepting an assignment. 
In  order  to  preserve  family  unity,  family  members  should  be  able  to  join  the  intra-
corporate transferee in another Member State under the conditions determined by the 
national law of such Member State. 

(25)  This  Directive  should  not  apply  to  third  country  nationals  who  apply  to  reside  in  a 
Member State as researchers in order to carry out a research project, as they fall within 
the  scope  of  Council  Directive  2005/71/EC  of  12  October  2005  on  a  specific 
procedure  for  admitting  third-country  nationals  for  the  purposes  of  scientific 
research12. 

(26)  Since the objectives of a special admission procedure and the adoption of conditions 
of  entry  and  residence  for  the  purpose  of  intra-corporate  transfers  of  third-country 
nationals cannot be achieved sufficiently by Member States and, therefore, by reason 
of the scale and effects of the action, can be better achieved at Union level, the Union 
may  adopt  measures  in  accordance  with  the  principle  of  subsidiarity  as  set  out  in 
Article  5  of  the  Treaty  on  European  Union.  In  accordance  with  the  principle  of 
proportionality  as  set  out  in  that  Article,  this  Directive  does  not  go  beyond  what  is 
necessary in order to achieve those objectives. 

(27)  This Directive respects the fundamental rights and observes the principles recognised 

in particular by the Charter of Fundamental Rights of the European Union. 

(28) 

[In accordance with Articles 1 and 2 of Protocol No 21 on the position of the United 
Kingdom and Ireland in respect of the Area of Freedom, Security and Justice, annexed 
to the Treaty on European Union and to the Treaty on the Functioning of the European 
Union,  and  without  prejudice  to  Article  4  of  that  Protocol,  those  Member  States  are 
not taking part in the adoption of this Directive, and are not bound by or subject to its 
application.] 

(29) 

In  accordance  with  Articles  1  and  2  of  Protocol  No  22  on  the  position  of  Denmark 
annexed  to  the  Treaty  on  European  Union  and  the  Treaty  on  the  Functioning  of  the 
European Union, Denmark is not taking part in the adoption of this Directive, and is 
not bound by it or subject to its application, 

12 

OJ L 289, 3.11.2005, p. 15. 

EN 

17 

   EN 

                                                 
HAVE ADOPTED THIS DIRECTIVE: 

CHAPTER I 

GENERAL PROVISIONS 

Article 1 
Subject-matter 

This Directive determines: 

(a) 

(b) 

the conditions of entry to and residence for more than three months in the territory of 
the  Member  States  of  third-country  nationals  and  of  their  family  members  in  the 
framework of an intra-corporate transfer; 

the conditions of entry to and residence for more than three months of third-country 
nationals,  referred  to  in  point  (a),  in  Member  States  other  than  the  Member  State 
which  first  grants  the  third-country  national  a  residence  permit  on  the  basis  of  this 
Directive. 

Article 2 
Scope 

1. 

This Directive shall apply to third-country nationals who reside outside the territory 
of a Member State and apply to be admitted to the territory of a Member State in the 
framework of an intra-corporate transfer. 

2. 

This Directive shall not apply to: 

(a) 

(b) 

(c) 

third-country nationals who apply to reside in a Member State as researchers, 
within  the  meaning  of  Directive  2005/71/EC,  in  order  to  carry  out  a  research 
project; 

third-country  nationals  who,  under  agreements  between  the  Union  and  its 
Member States and third countries, enjoy rights of free movement equivalent to 
those of citizens of the Union or are employed by an undertaking established in 
those third countries; 

third-country  nationals  carrying  out  activities  on  behalf  of  undertakings 
established  in  another  Member  State  in  the  framework  of  a  provision  of 
services within the meaning of Article 56 of the Treaty on the Functioning of 
the  European  Union,  including  those  posted  by  undertakings  established  in  a 
Member State in the framework of a provision of services in accordance with 
Directive 96/71/EC. 

EN 

18 

   EN 

For the purposes of this Directive, the following definitions shall apply: 

Article 3 
Definitions 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

‘third-country national’ means any person who is not a citizen of the Union, within 
the  meaning  of  Article 20(1)  of  the  Treaty  on  the  Functioning  of  the  European 
Union; 

‘intra-corporate  transfer’  means  the  temporary  secondment  of  a  third-country 
national from an undertaking established outside the territory of a Member State and 
to  which  the  third-country  national  is  bound  by  a  work  contract,  to  an  entity 
belonging  to  the  undertaking  or  to  the  same  group  of  undertakings  which  is 
established inside this territory; 

‘intra-corporate  transferee’  means  any  third-country  national  subject  to  an  intra-
corporate transfer; 

‘host entity’ means the entity, regardless of its legal form, established in the territory 
of a Member State to which the third-country national is transferred; 

‘manager’ means any person working in a senior position, who principally directs the 
management of the host entity, receiving general supervision or direction principally 
from  the  board  of  directors  or  stockholders  of  the  business  or  equivalent;  this 
position includes: directing the host entity or a department or sub-division of the host 
entity,  supervising  and  controlling  the  work  of  other  supervisory,  professional  or 
managerial  employees,  having  the  authority  personally  to  hire  and  dismiss  or 
recommend hiring, dismissing or other personnel actions; 

‘specialist’  means  any  person  possessing  uncommon  knowledge  essential  and 
specific to the host entity, taking account not only of knowledge specific to the host 
entity, but also of whether the person has a high level of qualification referring to a 
type of work or trade requiring specific technical knowledge;  

‘graduate  trainee’  means  any  person  with  a  higher  education  qualification  who  is 
transferred  to  broaden  his/her  knowledge  of  and  experience  in  a  company  in 
preparation for a managerial position within the company; 

‘higher education qualification’ means any diploma, certificate or other evidence of 
formal  qualifications  issued  by  a  competent  authority  attesting  the  successful 
completion of a post-secondary higher education programme of at least three years, 
namely  a  set  of  courses  provided  by  an  educational  establishment  recognised  as  a 
higher education institution by the State in which it is situated;  

(i) 

‘family  members’  means  the  third-country  nationals  referred  to  in  Article  4(1)  of 
Council Directive 2003/86/EC13;  

13 

OJ L 251, 3.10.2003, p. 12. 

EN 

19 

   EN 

                                                 
(j) 

(k) 

(l) 

(m) 

(n) 

‘intra-corporate transferee permit’ means any authorisation bearing the words ‘intra-
corporate  transferee’  entitling  its  holder  to  reside  and  work  in  the  territory  of  a 
Member State under the terms of this Directive; 

‘single  application  procedure’  means  the  procedure  leading,  on  the  basis  of  one 
application for the authorisation of a third-country national’s residence and work in 
the territory of a Member State, to a decision on the application; 

 'group  of  undertakings'  for  the  purposes  of  this  Directive  means  two  or  more 
undertakings  recognised  as  linked  in  the  following  ways  under  national  law:  an 
undertaking, in relation to another undertaking directly or indirectly: holds a majority 
of that undertaking's subscribed capital; or controls a majority of the votes attached 
to  that  undertaking's  issued  share  capital;  or  can  appoint  more  than  half  of  the 
members of that undertaking's administrative, management or supervisory body; 

‘first  Member  State’  means  the  Member  State  which  first  grants  a  third-country 
national a residence permit on the basis of this Directive; 

‘universally  applicable  collective  agreement’  means  a  collective  agreement  which 
must be observed by all undertakings in the geographical area and in the profession 
or industry concerned. In the absence of a system for declaring collective agreements 
of  universal  application,  Member  States  may  base  themselves  on  collective 
agreements  which  are  generally  applicable  to  all  similar  undertakings  in  the 
geographical  area  and  in  the  profession  or  industry  concerned,  and/or  collective 
agreements  which  have  been  concluded  by  the  most  representative  employers  and 
labour  organisations  at  national  level  and  which  are  applied  throughout  national 
territory. 

Article 4 
More favourable provisions 

1. 

This Directive shall apply without prejudice to more favourable provisions of: 

(a)  Union law, including bilateral and multilateral agreements concluded between 
the  Union  and  its  Member  States  on  the  one  hand  and  one  or  more  third 
countries on the other; 

(b)  bilateral  or  multilateral  agreements  concluded  between  one  or  more  Member 

States and one or more third countries. 

2. 

This  Directive  shall  not  affect  the  right  of  Member  States  to  adopt  or  retain  more 
favourable provisions for persons to whom it applies in respect of Articles 3 (i), 12, 
14 and 15. 

EN 

20 

   EN 

CHAPTER II 
CONDITIONS OF ADMISSION 

Article 5 
Criteria for admission 

1. 

Without prejudice to Article 10, a third-country national who applies to be admitted 
under the terms of this Directive shall: 

(a) 

provide evidence that the host entity and the undertaking established in a third 
country belong to the same undertaking or group of undertakings;  

(b)  provide evidence of employment within the same group of undertakings, for at 
least 12 months immediately preceding the date of the intra-corporate transfer, 
if  required  by  national  legislation,  and  that  he  or  she  will  be  able  to  transfer 
back to an entity belonging to that group of undertakings and established in a 
third country at the end of the assignment;  

(c) 

present an assignment letter from the employer including: 

(i) 

(ii) 

the duration of the transfer and the location of the host entity or entities 
of the Member State concerned;  

evidence  that  he  or  she  is  taking  a  position  as  a  manager,  specialist  or 
graduate  trainee  in  the  host  entity  or  entities  in  the  Member  State 
concerned; 

(iii) 

the remuneration granted during the transfer; 

(d)  provide  evidence  that  he  or  she  has  the  professional  qualifications  needed  in 
the  Member  State  to  which  he  or  she  has  been  admitted  for  the  position  of 
manager  or  specialist  or,  for  graduate  trainees,  the  higher  education 
qualifications required; 

(e) 

present documentation certifying that he or she fulfils the conditions laid down 
under  national  legislation  for  citizens  of  the  Union  to  exercise  the  regulated 
profession which the transferee will work in;  

(f) 

present  a  valid  travel  document,  as  determined  by  national  law,  and  an 
application for a visa or a visa, if required;  

(g)  without prejudice to existing bilateral agreements, present evidence of having 
or, if provided for by national law, having applied for sickness insurance for all 
the  risks  normally  covered  for  nationals  of  the  Member  State  concerned  for 
periods  where  no  such  insurance  coverage  and  corresponding  entitlement  to 
benefits are provided in connection with, or as a result of, the work contract;  

(h)  be  considered  not  to  pose  a  threat  to  public  policy,  public  security  or  public 

health.  

EN 

21 

   EN 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

Member  States  shall  require  that  all  conditions  in  the  law,  regulations  or 
administrative  provisions  and/or  universally  applicable  collective  agreements 
applicable  to  posted  workers  in  a  similar  situation  in  the  relevant  occupational 
branches are met with regard to the remuneration granted during the transfer.  

In  the  absence  of  a  system  for  declaring  collective  agreements  to  be  of  universal 
application,  Member  States  may,  if  they  so  decide,  base  themselves  on  collective 
agreements  which  are  generally  applicable  to  all  similar  undertakings  in  the 
geographical  area  and  in  the  profession  or  industry  concerned,  and/or  collective 
agreements  which  have  been  concluded  by  the  most  representative  employers'  and 
labour  organisations  at  national  level  and  which  are  applied  throughout  national 
territory. 

In  addition  to  the  evidence  stipulated  in  paragraphs  1  and  2,  any  third-country 
national  who  applies  to  be  admitted  as  a  graduate  trainee  shall  present  a  training 
agreement,  including  a  description  of  the  training  programme,  its  duration  and  the 
conditions under which the applicant is supervised during the programme. 

Where the transfer concerns host entities located in several Member States, any third-
country  national  who  applies  to  be  admitted under  the  terms  of  this  Directive  shall 
present evidence of the notification required pursuant to Article 16(1)(b). 

Any modification that affects the conditions for admission set out in this Article shall 
be notified to the competent authorities of the Member State concerned. 

Article 6 
Grounds for refusal 

Member  States  shall  reject  an  application  where  the  conditions  set  out  in  Article  5 
are  not  met  or  where  the  documents  presented  have  been  fraudulently  acquired, 
falsified or tampered with. 

Member States shall reject an application if the employer or the host entity has been 
sanctioned  in  conformity  with  national  law  for  undeclared  work  and/or  illegal 
employment. 

Member States may reject an application on the grounds of volumes of admission of 
third-country nationals.  

Where  the  transfer  concerns  host  entities  located  in  several  Member  States,  the 
Member State where the application is lodged shall limit the geographical scope of 
validity of the permit to the Member States where the conditions set out in Article 5 
are met. 

EN 

22 

   EN 

Article 7 
Withdrawal or non-renewal of the permit 

1. 

Member States shall withdraw or refuse to renew an intra-corporate transferee permit 
in the following cases: 

(a)  where  it  has  been  fraudulently  acquired,  or  has  been  falsified,  or  tampered 

with; 

or 

(b)  where the holder is residing for purposes other than those for which he/she was 

authorised to reside. 

2. 

Member States may withdraw or refuse to renew an intra-corporate transferee permit 
in the following cases; 

(a)  wherever the conditions laid down in Article 5 were not met or are no longer 

met; 

 or  

(b) 

for reasons of public policy, public security or public health.  

Article 8 
Penalties 

Member  States  may  hold  the  host  entity  responsible  and  provide  for  penalties  for  failure  to 
comply with the conditions of admission. Those penalties shall be effective, proportionate and 
dissuasive. 

CHAPTER III 
PROCEDURE AND PERMIT 

Article 9 
Access to information 

Member States shall take the necessary measures to make available information on entry and 
residence, including rights, and all documentary evidence needed for an application. 

Article 10 
Applications for admission 

1. 

Member  States  shall  determine  whether  an  application  is  to  be  made  by  the  third-
country national or by the host entity. 

EN 

23 

   EN 

 
 
2. 

3. 

4. 

5. 

6. 

7. 

The  application  shall  be  considered  and  examined  only  when  the  third-country 
national is residing outside the territory of the Member State to which admission is 
sought. 

The  application  shall  be  lodged  to  the  authorities  of  the  Member  State  where  the 
intra-corporate transfer mainly takes place. 

Member States shall designate the authority competent to receive the application and 
to issue the intra-corporate transferee permit. 

The application shall be submitted in a single application procedure. 

The  Member  State  concerned  shall  grant  third-country  nationals  whose  application 
for admission has been accepted every facility to obtain the requisite visa. 

Simplified  procedures  may  be  made  available  to  groups  of  undertakings  that  have 
been recognised for that purpose by Member States in accordance with their national 
legislation or administrative practice.  

Recognition  shall  be  granted  for  a  maximum  of  three  years  on  the  basis  of  the 
following information:  

(a) 

(b) 

(c) 

information  relating  to  the  financial  standing  of  the  group  of  undertakings 
aiming  to  ensure  that  the  intra-corporate  transferee  will  be  guaranteed  the 
required level of remuneration and rights as provided for in Article 14;  

evidence  that  the  conditions  of  admission  regarding  prior  transfers  have  been 
complied with;  

evidence  that  tax  law  and  regulations  have  been  complied  with  in  the  host 
country;  

(d) 

information related to forthcoming transfers. 

8. 

The simplified procedures provided for in paragraph 7 shall consist of: 

(a) 

(b) 

exempting the applicant from presenting the documents referred to in Article 5 
where they have been previously provided and are still valid; 

a fast-track admission procedure allowing intra-corporate transferee permits to 
in  Article  12(1); 
be 

issued  within  a  shorter 

than  specified 

time 

or 

(c) 

specific facilitations for visas. 

9. 

10. 

A  group  of  undertakings  that  has  been  recognised  in  accordance  with  paragraph  7 
shall  notify  to  the  relevant  authority  any  modification  affecting  the  conditions  for 
recognition. 

Member  States  shall  provide  for  appropriate  penalties,  including  revocation  of 
recognition, in the event of failure to provide the evidence and information referred 
to in paragraph 7. 

EN 

24 

   EN 

 
1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

Article 11 
Intra-corporate transferee permit 

Intra-corporate transferees  who fulfil  the admission criteria set out in Article 5 and 
for  whom  the  competent  authorities  have  taken  a  positive  decision  shall  be  issued 
with an intra-corporate transferee permit.  

The  period  of  validity  of  the  intra-corporate  transferee  permit  shall  be  at  least  one 
year  or  the  duration  of  the  transfer  to  the  territory  of  the  Member  State  concerned, 
whichever  is  shorter,  and  may  be  extended  to  a  maximum  of  three  years  for 
managers and specialists and one year for graduate trainees. 

The intra-corporate transferee permit shall be issued by the competent authorities of 
the Member State using the uniform format as laid down in Council Regulation (EC) 
No 1030/200214. In accordance with point (a) 7.5-9 of the Annex to that Regulation, 
Member  States  shall  indicate  on  the  residence  permit  information  related  to  the 
permission to work under the conditions laid down in Article 13. 

Under  the  heading  ‘type  of  permit’,  the  Member  States  shall  enter  ‘intra-corporate 
transferee’  and  the  name  of  the  group  of  undertakings  concerned.  Member  States 
shall  issue  to  the  holder  of  an  intra-corporate  transferee  permit  an  additional 
document containing a list of the entities authorised to host the third-country national 
and revise it whenever that list is modified. 

Member States shall not issue any additional permits, in particular work permits of 
any kind. 

Article 12 
Procedural safeguards 

The competent authorities of the Member State concerned shall adopt a decision on 
the  application  for  admission  to  a  Member  State  as  an  intra-corporate  transferee  or 
for revision of the additional document provided for in Article 11(4) and notify the 
applicant in writing, in accordance with the notification procedures laid down in the 
national  law  of  the  Member  State  concerned,  within  30  days  of  the  complete 
application  being  lodged.  In  exceptional  cases  involving  complex  applications 
including  applications  concerning  host  entities  in  several  Member  States,  the 
deadline may be extended for a maximum of a further 60 days. 

Where  the  information  supplied  in  support  of  the  application  is  inadequate,  the 
competent  authorities  shall  notify  the  applicant  within  a  reasonable  period  of  the 
additional information that is required and set a reasonable deadline for providing it.  

Any  decision  rejecting  an  application  or  any  decision  not  to  renew  or  to  withdraw 
intra-corporate  transferee  permits,  shall  be  notified  in  writing  to  the  applicant  and 
shall be open to a legal challenge in the Member State concerned, in accordance with 
national law. The notification shall specify the reasons for the decision, the possible 
redress procedures available and the time limit for taking action. 

14 

OJ L 157, 15.6.2002, p. 1. 

EN 

25 

   EN 

                                                 
CHAPTER IV 
RIGHTS 

Article 13 
Rights on the basis of the intra-corporate transferee permit 

During the period of validity of an intra-corporate transferee permit, the holder shall enjoy at 
least the following rights: 

1. 

2. 

3. 

4. 

the right to enter and stay in the territory of the Member State issuing the permit;  

free access to the entire territory of the Member State issuing the permit within the 
limits provided for by national law; 

the right to exercise the specific employment activity authorised under the permit in 
accordance  with  national  law  in  any  other  entity  belonging  to  the  group  of 
undertakings  listed  in  the  additional  document  provided  for  in  Article  11(4)  in 
accordance with Article 16;  

the  right  to  carry  out  his/her  assignment  at  the  sites  of  clients  of  the  entities 
belonging to the group of undertakings listed in the additional document provided for 
in  Article  11  (4),  as  long  as  the  employment  relationship  is  maintained  with  the 
undertaking established in a third country. 

Article 14 
Rights 

Whatever the law applicable to the employment relationship, intra-corporate transferees shall 
be entitled to: 

1. 

the  terms  and  conditions  of  employment  applicable  to  posted  workers  in  a  similar 
situation,  as  laid  down  by  law,  regulation  or  administrative  provision  and/or 
universally applicable collective agreements in the Member State to which they have 
been admitted pursuant to this Directive.  

In  the  absence  of  a  system  for  declaring  collective  agreements  to  be  of  universal 
application,  Member  States  may,  if  they  so  decide,  base  themselves  on  collective 
agreements  which  are  generally  applicable  to  all  similar  undertakings  in  the 
geographical  area  and  in  the  profession  or  industry  concerned,  and/or  collective 
agreements  which  have  been  concluded  by  the  most  representative  employers'  and 
labour  organisations  at  national  level  and  which  are  applied  throughout  national 
territory. 

2. 

equal treatment with nationals of the host Member State as regards: 

(a) 

freedom  of  association  and  affiliation  and  membership  of  an  organisation 
representing workers or employers or of any organisation whose members are 
engaged  in  a  specific  occupation,  including  the  benefits  conferred  by  such 

EN 

26 

   EN 

organisations, without prejudice to the national provisions on public policy and 
public security; 

(b) 

recognition  of  diplomas,  certificates  and  other  professional  qualifications  in 
accordance with the relevant national procedures; 

(c)  without  prejudice  to  existing  bilateral  agreements,  provisions  in  national  law 
regarding  the  branches  of  social  security  defined  in  Article  3  of  Regulation 
(EC) No 883/04. In the event of mobility between Member States and without 
prejudice  to  existing  bilateral  agreements,  Council  Regulation  (EC)  No 
859/200315 shall apply accordingly; 

(d)  without  prejudice  to  Regulation  (EC)  No  859/2003  and  to  existing  bilateral 
agreements,  payment  of  statutory  pensions  based  on  the  worker's  previous 
employment when moving to a third country;  

(e) 

access  to  goods  and  services  and  the  supply  of  goods  and  services  made 
available to the public, except public housing and counselling services afforded 
by employment services.  

The right to equal treatment laid down in paragraph 2 shall be without prejudice to 
the  right  of  the  Member  State  to  withdraw  or  to  refuse  to  renew  the  permit  in 
accordance with Article 7. 

Article 15 
Family members 

1. 

2. 

3. 

4. 

5. 

Council  Directive  2003/86/EC  shall  apply,  subject  to  the  derogations  laid  down  in 
this Article. 

By  way  of  derogation  from  Articles  3(1)  and  8  of  Directive  2003/86/EC,  family 
reunification  in  the  first  Member  State  shall  not  be  made  dependent  on  the 
requirement that the holder of the permit issued on the basis of this Directive must 
have reasonable prospects of obtaining the right of permanent residence and have a 
minimum period of residence. 

By  way  of  derogation  from  the  last  subparagraph  of  Article  4(1)  and  from 
Article 7(2)  of  Directive  2003/86/EC,  the  integration  measures  referred  to  therein 
may be applied by the first Member State only after the persons concerned have been 
granted family reunification. 

By  way  of  derogation  from  the  first  subparagraph  of  Article  5(4)  of  Directive 
2003/86/EC,  residence  permits  for  family  members  shall  be  granted  by  the  first 
Member  State,  if  the  conditions  for  family  reunification  are  fulfilled,  at  the  latest 
within two months from the date on which the application was lodged. 

By  way  of  derogation  from  Article  13(2)  and  (3)  of  Directive  2003/86/EC,  the 
duration of validity of the residence permits of family members in the first Member 

15 

OJ L 124, 20.5.2003, p. 1. 

EN 

27 

   EN 

                                                 
State shall be the same as that of the intra-corporate transferee permit, insofar as the 
period of validity of their travel documents allows. 

CHAPTER V 
MOBILITY BETWEEN MEMBER STATES 

Article 16 
Mobility between Member States 

1. 

Third-country nationals who have been granted an intra-corporate transferee permit 
in a first Member State, who fulfil the criteria for admission as set out in Article 5 
and who apply for an intra-corporate transferee permit in another Member State shall 
be  allowed  to  work  in  any  other  entity  established  in  that  Member  State  and 
belonging  to  the  same  group  of  undertakings and at the  sites of clients of that host 
entity  if  the  conditions  set  out  in  Article  13(4)  are  fulfilled,  on  the  basis  of  the 
residence  permit  issued  by  the  first  Member  State  and  the  additional  document 
provided for in Article 11(4), provided that: 

(a) 

(b) 

the  duration  of  the  transfer  in  the  other  Member  State(s)  does  not  exceed 
twelve months; 

the  applicant  has  submitted  to  the  competent  authority  of  the  other  Member 
State, before his or her transfer to that Member State, the documents referred to 
in Article 5(1) (2) and (3) relating to the transfer to that Member State and has 
provided evidence of such submission to the first Member State. 

2. 

If the duration of the transfer in the other Member State exceeds twelve months-, the 
other Member State may require a new application for a residence permit as an intra-
corporate transferee in that Member State.  

Where  the  relevant  legislation  requires  a  visa  or  residence  permit  for  exercising 
mobility, such visas or permits shall be granted in a timely manner within a period 
that  does  not  hamper  pursuit  of  the  assignment,  whilst  leaving  the  competent 
authorities sufficient time to process the applications. 

Member States shall not require intra-corporate transferees to leave their territory in 
order to submit applications for visas or residence permits. 

3. 

The maximum duration of the transfer to the European Union shall not exceed three 
years for managers and specialists and one year for graduate trainees. 

EN 

28 

   EN 

CHAPTER VI 
final provisions 

Article 17 
Statistics  

1. 

2. 

3. 

Member  States  shall  communicate  to  the  Commission  statistics  on  the  number  of 
residence permits issued for the first time or renewed and, as far as possible, on the 
number of residence permits withdrawn for the purpose of intra-corporate transfer to 
persons  who  are  third-country  nationals,  disaggregated  by  citizenship,  age  and  sex, 
by transferee position (manager, specialist and graduate trainee), by length of validity 
of the permit and by economic sector. 

The  statistics  referred  to  in  paragraph  1  shall  be  communicated  in  accordance  with 
Regulation (EC) No 862/200716. 

The  statistics  referred  to  in  paragraph  1  shall  relate  to  reference  periods  of  one 
calendar year and shall be supplied to the Commission within six months of the end 
of the reference year. The first reference year shall be […….]. 

Article 18 
Reports 

By [three years after the date of transposition of this Directive] at the latest and every three 
years  thereafter,  the  Commission  shall  submit  a  report  to  the  European  Parliament  and  the 
Council  on  the  application  of  this  Directive  in  the  Member  States  including  any  necessary 
proposal. 

1. 

2. 

1. 

Article 19 
Contact points 

Member States shall appoint contact points which shall be responsible for receiving 
and transmitting the information needed to implement Article 16.  

Member  States  shall  provide  appropriate  cooperation  on  exchanges  of  the 
information and documentation referred to in paragraph 1. 

Article 20 
Transposition 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions necessary to comply with this Directive by [two years after the entry into 
force] at the latest. They shall forthwith communicate to the Commission the text of 
those provisions and a correlation table between those provisions and this Directive. 

16 

OJ L 199, 31.7.2007, p. 23. 

EN 

29 

   EN 

                                                 
When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

Article 21 
Entry into force 

This  Directive  shall  enter  into  force  on  the  […]  day  following  that  of  its  publication  in  the 
Official Journal of the European Union.  

Article 22 
Addressees 

This  Directive  is  addressed  to  the  Member  States  in  accordance  with  the  Treaty  on  the 
Functioning of the European Union.  

Done at Brussels, [... ] 

For the European Parliament 
The President 

For the Council 
The President 

EN 

30 

   EN