Thinking of starting or expanding to the Netherlands? The Netherlands, recognized for its open trade culture and openness to foreign entrepreneurs, starting a business in the Netherlands offers many economic advantages.
Strategic Location
The Netherlands is strategically favorable in mainland Europe. Its sea, land, and air accessibility makes it ideal for worldwide expansion. Companies can reach 95% of Europe in 24 hours from Amsterdam and Rotterdam, significant transport hubs. The largest port in Europe and outside Asia, Rotterdam processes about 460m tonnes of cargo annually. Amsterdam handles 100m tonnes of cargo annually as Europe’s fourth largest port. Amsterdam Schiphol is Europe’s third busiest airport. It’s an International passenger and cargo transportation hub.
Economic Stability
The Dutch economy has grown steadily for decades. The nation has solid public finances, good industrial relations, low unemployment, and a significant talent pool. In 2020, the Netherlands was the 6th largest exporter and 8th largest importer despite its size. The Netherlands is also a solid EU core member.
Business Startup Simplicity
The Netherlands is one of the easiest European countries to incorporate. A sophisticated internet system can register a firm in days. Opening a Dutch business requires a business bank account. Dutch or SEPA banks can hold the account. Opening a local business bank account without a Dutch passport can be difficult; Wanneerishet can help.
Favorable Taxation
The Dutch tax structure favors foreign direct investments, making doing business there attractive. Businesses will pay taxes on profits. The first income group has a 15% tax rate. The basic corporate income tax (CIT) rate is 25.8% as of January 1, 2022. The regular CIT rate applies to taxable income over EUR 395,000 in the first income category. The Dutch participation exemption reduces double taxation of firm profits. Splitting a company into multiple limited businesses lowers the average tax rate.
Innovation
Priorities for the Dutch government include technological innovation and public-private cooperation. There is a good structure to support enterprises’ innovation and growth. The Global Innovation Index 2021 ranks the Netherlands 6th, with ICT infrastructure (4th) and knowledge absorption (2nd) ranking higher. The government encourages innovation through corporate taxation and R&D tax incentives.
Strong financial center
The Netherlands has long attracted big financial firms. Financial institutions are vital to the Dutch economy, and ING, ABN Amro, and Rabobank are world-renowned. The Dutch financial sector is well-developed due to current financial monitoring laws. Without public registry coverage, credit is difficult to obtain.
Infrastructure
The Netherlands excels in logistics and technology. Since 2005, the DHL Global Connectedness Index has named the Netherlands the world’s most connected country for its strong global trade integration and international ties. Along with world-class seaports and airports, there are substantial highways, rail, and waterways. These are in good condition and have straightforward navigation. Companies from Amsterdam and Rotterdam can reach 170 million people in 24 hours by train, road, or water.
Dutch telecoms are among the best in quality, speed, and reliability. Transatlantic marine cables connecting Europe and North America usually run to the Netherlands. The country has 99% 4G coverage, one of the greatest broadband penetrations per capita, and one of the fastest average broadband speeds.
Numerous Strong Sectors
Starting or investing in a business in the Netherlands is promising. Due to their pioneering, efficient, and innovative solutions, the Dutch are world-renowned in some fields.
The top sectors are Information & Tech, Logistics, Health, Creative Arts, Offshore & renewable energy, Technology and innovation, Agriculture/Food processing, Drugs and chemicals, Financial services, Electrical and mechanical engineering, and Telecommunications.
Large Talent Pool
Dutch workers are industrious, versatile, multilingual, and well-educated. The Netherlands has one of the highest rates of well-rounded cognitive (literacy, numeracy, and problem-solving) skills and is ahead in workplace digital transformation due to IT investment, according to the OECD Skills Outlook reports. The Netherlands has many foreign workers and offers a ‘Highly Skilled Migrant Visa’ for companies to hire competent expats.
Conclusion
The Netherlands might be a fantastic location for business owners. Its location is advantageous, its economy is robust, and it fosters innovation. Access to global markets and a workforce that is multilingual and trained are just two of the many benefits available to individuals wishing to launch a business.
