International students bring significant economic benefits

On average, international students generate more revenue for the Dutch government over the course of their careers than they cost. This is according to a new study by the Netherlands Bureau for Economic Policy Analysis (CPB), which re-examined the economic impacts of international students.

The government incurs costs for international students during their studies, for example through funding for higher education and student financial aid for students from the European Economic Area (EEA). These costs are later offset by tax revenues. Some of the students remain in the Netherlands to live and work after graduation, thereby contributing to the Dutch economy and public finances.

Graduates from countries outside the EEA, in particular, contribute significantly on average. University students from this group contribute an average of nearly €250,000 to public finances over the course of their lives. For university students from the EEA and higher professional education (HBO) students from outside the EEA, the average contribution is around €100,000. The contribution of HBO students from the EEA is virtually neutral.

More and more international graduates are staying

International students are also more likely to remain in the Netherlands after completing their studies. Five years after leaving higher education, approximately one in five EEA students and two in five non-EEA students still live in the Netherlands. Ten years ago, those percentages were about a quarter lower.

In addition, recent international graduates find paid employment more quickly than previous cohorts. As a result, they begin paying taxes and contributing to the Dutch economy sooner.

The number of international students in the Netherlands has risen sharply in recent years. Between 2017 and 2024, the number of students at Dutch universities and universities of applied sciences grew from approximately 76,000 to 131,000. The strongest growth occurred among international undergraduate students. Since 2021, however, the influx of new international students has been declining again.

Not just economic benefits

According to the CPB, the effects of international students are not exclusively financial. In the short term, they can help reduce labor shortages, but at the same time increase pressure on the housing market. In the longer term, the CPB does not expect any major effects on the labor or housing markets.

However, international students can contribute to innovation and international relations. Their presence brings knowledge, skills, and international networks to the Netherlands, while some of them remain part of the Dutch labor market after graduation.

The new study was commissioned by the Ministry of Education, Culture, and Science and updates earlier CPB analyses from 2012 and 2019.