The Netherlands is an attractive destination for businesses wanting to expand into Europe due to its business-friendly environment, skilled workforce, and unparalleled access to Europe. Various types of businesses can be established, and its focus on sustainability and favorable tax policies also make it a competitive, well-regulated environment for businesses expansion.
The Netherlands has long been a hub for business innovation and a main gateway to the European market. Its strategic location, strong focus on sustainability, and business-friendly environment make it an attractive destination for international businesses.
In CSC’s latest report, “Setting Up a Business in the Netherlands,” we go into detail about the tax regulations in the Netherlands and what it means for your business as you expand into this region.
Why the Netherlands is a good place to do business
The Netherlands is widely regarded as one of the most business-friendly countries in Europe. Its stable political environment, skilled workforce, and infrastructure make it an appealing location for companies. Five of the biggest draws to the Netherlands include:
1. Its attractive tax system
The Netherlands has an attractive tax system for foreign businesses, but it’s crucial to understand the 10 key tax laws that apply, some of which are:
- Corporate income tax (CIT): The standard corporate income tax rate in the Netherlands is 25.8%, with a lower rate of 19% applying to profits up to €200,000.
- Value added tax (VAT): The standard VAT rate is 21%, with reduced rates of 9% for certain goods and services, such as food and medicine.
- Dividend tax: The Netherlands applies a 15% withholding tax on dividends paid to foreign shareholders. The conditional withholding tax rate is 25.8%.
2. Its business-first culture
It takes around three-and-a-half days and four procedures to set up a business in the country, which is significantly lower than the Organisation for Economic Cooperation and Development (OECD) average. There are seven different kinds of entities companies can choose from depending on their needs. In addition to that, at least 90% of the Dutch population is fluent in English, around 71% of the population can converse fluently in German, while 29% can speak French.
3. It’s a major gateway to Europe
The Dutch logistics infrastructure provides unparalleled access to Europe. The country benefits from its central position as a European gateway and its excellent logistics facilities. Amsterdam’s Schiphol Airport serves as a major European aviation hub, complemented by four regional airports offering international connections. And Rotterdam is Europe’s largest seaport and ranks as the world’s tenth-largest container port.
4. It’s a sustainability powerhouse
The Netherlands is home to one of Europe’s largest offshore wind farms and the continent’s largest floating solar energy park. The port of Rotterdam collaborates with businesses to produce sustainable biofuels. Additionally, the Netherlands supports energy innovation and the adoption of renewable energy sources through various incentives.
5. Local knowledge is essential
Having a trusted partner with local knowledge and a global presence is an important factor when setting up a business in the Netherlands, for ease of navigating the rules and regulations, developing long-term, trust-based relationships with the local regulators, and staying abreast of changes in legislation and the business environment. Having a trusted partner like CSC is invaluable for establishing and maintaining an entity in the Netherlands.
Get in touch to learn more about CSC’s services in the Netherlands.
How CSC can help you set up a business in the Netherlands
Setting up a business in the Netherlands offers numerous advantages, from its central location in Europe to its skilled workforce and favorable tax policies. By choosing the right business structure and understanding the tax framework, companies can thrive in this dynamic business environment. CSC can help you navigate setting up a business in this exciting jurisdiction.
Download our guide, “Setting Up a Business in the Netherlands,” for complete information about expanding into the Netherlands. And contact us to find out how CSC can help you navigate this jurisdiction.
