Why Set Up Your Business in Netherlands?
The Netherlands, once known as Holland, is a country located in Western Europe. Bordering Belgium to the south, Germany to the east and north, and the North Sea along its western coast, Netherlands is the 27th most densely populated country in the world. Located at the crossroads of three of Europe’s major rivers: the Rhine, the Meuse and the Schelde, Netherlands is perfectly positioned to serve the vast pan-European market.
An Overview of the Dutch Economy
The Netherlands, which is also the sixth-largest economy in the European Union, plays a crucial role as a European transportation hub. The country’s strategic location at Europe’s front door is indeed one of the perfect springboards into the European market. Being a major economic hub, Netherlands benefits significantly from both global and European trade with a persistently high trade surplus, stable industrial relations, and moderate unemployment. In addition to this, Netherlands is also the world’s second-largest agricultural exporter. The industry that contributes to its economic growth focuses on food processing, chemicals, petroleum refining, and electrical machinery.
Why Invest in Netherlands?
Other than the strategic location, that connects the European countries nearby, Netherlands’s corporate tax structure, educated workforce, and excellent logistics and technology infrastructure have prompted many foreign investors to choose the Netherlands as their gateway to Europe. Here is why.
- Attractive Transportation and Logistic Infrastructure
Home to Europe’s largest port, the Port of Rotterdam, and Europe’s third largest cargo airport, Amsterdam Airport Schiphol, Netherlands’s transportation infrastructure boasts excellent multimodal hinterland connections. Companies based in Netherlands enjoy the advantage of having a quick and easy access to key markets throughout Europe, Africa, and the Middle East.
- Geo-strategic Location
Thanks to its location in the centre of the three biggest economies in Europe: Germany, the United Kingdom and France, Netherlands is perfectly positioned as the best point of access to enter the European market, not only from a logistics perspective, but also from a marketing & sales perspective.
- Global Business Climate
The Netherlands has a competitive global business climate where this country is home to more than 8,000 foreign companies. The internationally derived GDP makes up 50% of Dutch GDP. Many companies chose to base in Netherlands due to the vibrant business climate in the country.
- Attractive Tax Regime
The attractive tax structure has been one of the important reasons that appeal foreign investors. The Dutch government has rolled out a competitive tax regime that boosts entrepreneurship and foreign investment in the Netherlands. Other than the low corporate tax rates, the Dutch government has introduced numerous incentives that make it attractive for foreign companies to base and do business in the Netherlands. The corporate income tax rate stands at 20% on the first € 200,000 and 25% for taxable profits exceeding € 200,000, which is well below the EU national average. On top of that, there is also a broad tax treaty network where the Netherlands has signed treaties with more than 80 countries to ensure the avoidance of double taxation on income and capital. The regime actually helps to reduce withholding taxes on dividends, interests and royalties (for interest and royalties, in some cases, taxes are reduced to 0 %).
In a nutshell, the Netherlands is indeed one of the preferred destinations to setup foreign company due to its strategic coastal, advance logistics infrastructure including the Port of Rotterdam, excellent ICT connectivity, well-educated workforce, global business climate and tax structure. If you are looking for a suitable country to setup your international company that with access to some 500 million consumers in Western Europe, the Netherlands has a lot to offer.