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Why Start a Business in the Netherlands

Why Start a Business in the Netherlands

Updated on Wednesday 09th September 2015

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When we think of the Netherlands we think of a variety of symbols and traditions: windmills, cheese, tulips, Amsterdam and its world-renowned openness. But the Netherlands means much more and there are many reasons why Holland has become the country of choice for many foreign investors.
An important geographical advantage in the Netherlands
We could say that Holland is a crossroad for European business. Its strategic geographical location puts it in an advantageous point in Europe, thus enforcing commercial relations with one of the most powerful and developed countries in Europe.  The country also communicates well with the Middle East and African markets.
Accessibility and an excellent infrastructure place the Netherlands among the world’s most competitive economies.      
Favorable fiscal climate in the Netherlands
The Netherlands is known for its favorable fiscal climate. The Dutch tax system has certain features that are beneficial for foreign and local investors.
Entrepreneurs that wish to open a company in the Netherlands should know that there are five types of companies recognized by the Dutch Commercial Law.
The corporate income tax rate in Holland is 20% for the first 200,000 EUR and 25% for taxable profits exceeding 200,000 EUR. There are also certain advantages in debt and loss structuring and a reduction of withholding taxes on dividends, interest and royalties.
The Netherlands also offers a special 30% ruling that applies to employees that have been recruited from abroad to work in Holland. This gives the employer a tax-free reimbursement of 30% of the foreign employee’s salary.
International climate and valuable workforce in the Netherlands
Holland is an important trade center in Europe. Important countries are easily accessible from Holland and the country also has the most important and large port in Europe: The Port of Rotterdam. These characteristics make Holland a good choice for an import and export business.
Also, European based businesses may choose to locate their head offices in this central and pro-business European country.
Besides its favorable business climate, the Netherlands also has one of the most efficient workforce in Europe. Employees are highly educated, flexible, hard-working, and open to new challenges.
All of the aforementioned advantages are completed by a high standard of living.
If you wish to open a new business in the Netherlands or want to expand an existent business through a branch or a subsidiary, our law firm in the Netherlands can provide you with additional valuable information about the investment climate in Holland.


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