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My daughter is a German (EU) citizen: will her new SA husband be allowed to live in The Netherlands with her?

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Yes. He can move there under EU free movement (here, "EU country" generally includes non-EU members of the Schengen area):

If you are a worker

If you are working in another EU country, as an employee, self-employed or on a posting, your non-EU spouse, dependent children and grandchildren can stay there with you without having to meet any other conditions.

If you are a pensioner

If you are a pensioner living in another EU country, your non-EU spouse, children and grandchildren can stay there with you if you have for yourself and your whole family:

  • sufficient income to live without needing income support
  • comprehensive health insurance in that country

If you are a student

If you are a student living in another EU country, your spouse, dependent children and grandchildren can stay there with you if you:

  • are enrolled in an approved educational establishment
  • have sufficient income to support your whole family without needing income support
  • have comprehensive health insurance for your whole family in that country

Residence card

Your non-EU spouse, children and grandchildren must apply for a residence document with the authorities in the host country (often the town hall or local police station) within 3 months of arriving.

Find out how to get a residence card for your non-EU family members.

Equal treatment

During their stay in your new country, your non-EU spouse, children and grandchildren should be treated as nationals, notably regarding access to employment, pay and benefits facilitating access to work and enrolment in schools.

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As noted in a comment, this applies in general to non-EU family members of EU citizens when moving to an EU country other than the country of citizenship. It also applies when moving to the EU country of citizenship from another EU country.

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    For future readers, it is worth noting that the above applies to any non-EU spouse (not just SA) of an EU citizen (not just German) living together in any EU country other than the country of citizenship of the EU citizen. Where the couple live in the country of citizenship of the EU partner, it becomes a matter of local law, rather than EU law. – Martin Bonner May 11 '18 at 12:26
  • @MartinBonner that is of course an excellent point. I would also note that there is an exception to the rule that national law applies when the couple are in the country of citizenship of the EU partner. The exception, of course, applies when the EU national has exercised the right of free movement by living in another EU country and wishes to return to the country of citizenship. – phoog May 11 '18 at 15:39

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