The Netherlands has a business friendly environment and an international orientation that attracts many foreign investors. The country’s openness and its favorable geographical location make it an ideal candidate for investors who want to base their European business in a prime location. Investors have many business opportunities in the Netherlands and the Dutch legislation for foreign investments encourages and helps entrepreneurs.
The investment legislation in the Netherlands
refers to the main types of legal entities
that can be set up in the Netherlands, business incentives and different provisions for business activities in the country.
Tax benefits in the Netherlands
The Netherlands relies on foreign direct investments and there are numerous business sectors which are attractive to foreign investors worldwide. A progressive tax rate system
ensures that companies are taxed according to their profits, as such: the income tax rate has a maxim value of 25% on taxable profits exceeding 200,000 euros.
The Netherlands have no withholding tax on interest, royalties or branch profits and there are certain reductions available for the domestic withholding tax on dividends. The Netherlands has signed numerous tax treaties to ensure that double taxation
is avoided. When hiring highly qualified foreign employees, employers have additional tax benefits.
Incentives in the Netherlands
Companies that want to expand their business or choose to open new businesses
in certain sectors may be eligible for grants and special incentives. The following activities or business sectors are subject to special support from the Dutch Government:
- research and development and technological activities;
- export activities;
- environment-friendly activities and measures;
- establishing new businesses or expanding existing ones.
Incentives may vary and they are awarded until the specific budged is exhausted, either according to a list of applicants or by considering which applicants are best suited to receive a grant. Certain demands and guidelines must be observed. Dutch companies should be informed about the existing grants and whether or not they qualify for such incentives. Our Dutch lawyers
can help you apply for a grant and offer you more information about national incentives.
Dutch companies that are involved in creating a more competitive and innovative business model, as well as companies who prove that they are dedicated to protecting the environment can benefit from special incentives in the Netherlands.