European policies on higher education have progressively encouraged inward student mobility and in recent years, a number of European countries have become popular destinations for foreign students. However, with the emergence of new host countries, the competition for international students has intensified. A key variable that determines the competitiveness of a host country is the legislation governing international students. This paper provides a comparison of the current legislation governing the entry and stay conditions of international students in 5 European countries - the UK, Germany, France, Sweden and Netherlands. The paper also provides a comparative analysis across stages of legislation to assess the post-study employment conditions for international students. As the objective is to assess the implications of the legal regimes for student flows from India (to selected European countries), the paper also draws a comparison between the former and the current legislation governing international students in the United States, Australia and other emerging host nations. The paper concludes with a summary of findings and policy recommendations to improve the competitiveness of European countries as destinations for higher education. Keywords: Higher education, legislation on international students, Indian students, Europe, post study employment, labour market