It is a wise move to incorporate a company in the Netherlands, as the country provides a number of benefits to investors. The main advantages include a strategic location, excellent business climate, superior infrastructure, favourable tax system and qualified multilingual workforce. This article presents the reasons why the Netherlands is considered the perfect base for business operations in the EU.
Economy (ideal business climate)
The economy of the Netherlands holds the 6th place among the largest economies in the European Union and ranks high in many economic areas. For instance, the inflation in the country is moderate, the unemployment rate is comparatively low and the income per person is quite high. The Netherlands is 4th in the ranking for global competitiveness of the World Economic Forum for 2017/2018. Also, the country is first in the Global Connectedness Index released by DHL.
The Netherlands offers foreign businesses a competitive climate and already hosts 8000+ international companies. Actually, 50% of the country’s GDP originates from international sources.
The Netherlands has a strategic location on the threshold of Europe, providing an ideal base for establishing business activities with fast access to 95% of the best markets in Europe (reachable within 24h from Amsterdam or Rotterdam). Foreign entrepreneurs and international companies starting new activities in the Netherlands, often set up a Dutch BV company, via partners like Intercompany Solutions.
In addition to its excellent location, the country boasts a tax regime supporting operational businesses, multilingual well-educated workforce and outstanding technological and logistics infrastructure. Therefore it does not come as a surprise that foreign businesses of all sizes, from small and medium companies to Fortune 500 leaders, have picked the Netherlands as their European access point.
Besides a healthy business climate, the Netherlands also offers a comparatively low cost of living and remarkable quality of life.
Workforce (well-educated, productive, multilingual)
The Dutch workforce is well-qualified, flexible, productive and multilingual. It ranks first among the 63 countries included in the list for English proficiency of Education First for 2016. Besides English, German and French are spoken by more people compared to anywhere else.
The Dutch population is 17.2 million. A large percentage of the people are in the economically active range between 15 and 64 years of age. Qualified personnel are easier to find as compared to some major competitors. In addition, the national workforce is highly productive, mainly by virtue of the high training and education standards, the realistic legislation on labour and the commitment to investments in IT. The national government is stable and applies a realistic approach to businesses. Therefore the time spent in settling labour relations or disputes is less compared to most countries in Europe.
Innovation (a national trait)
The Netherlands holds the third place in the Global Innovation Index for 2017. It is recognized for its open culture, adaptive consumers and inviting test market.
Dutch universities score relatively high for teaching and research in different international rankings. Wageningen University, for example, is leading worldwide in green biotechnology, and Leiden is in the top for biomedical sciences. More improvements are expected since the European Medicines Agency announced its future relocation to Amsterdam. The Netherlands also shows excellent results in the field of high-tech innovations with close partnerships between the private and public sector, and modern R&D ecosystems.
Infrastructure (exceptional technology and logistics)
The Netherlands has one of the best infrastructures worldwide. It boasts top-class seaports and airports, a large network of roads and rails, and a reliable high-speed digital telecommunications network with full coverage and exceptional quality.
The advanced contemporary infrastructure is well connected to all available routes for the transport of goods and passengers and provision of services.
The broadband penetration in the Netherlands is the highest in the world and 99% of the households are connected. The local network is one of the fastest worldwide, so the country is also perceived as Europe’s digital portal.
Taxes and benefits (encouraging foreign investment and entrepreneurship)
International companies can benefit from the favourable fiscal atmosphere in the Netherlands. The country offers a reasonable 20% tax for corporate income amounting to ≤ 200 000 EUR. The tax rate is 25% for any amounts above this margin, but a reduction of 4% is expected. Different incentive programs are also available.
The Netherlands actively supports the execution of projects in the field of Research and Development through the adoption of favourable policies regarding corporate taxation and the availability of particular tax incentives related to innovations.
Do you intend to establish a company in the Netherlands? Our incorporation agents can assist you at any stage of the procedure.