5 Reasons to Start a Business in the Netherlands

At the beginning of 2020, the NFIA predicted a record-breaking number of foreign companies to expand to the Netherlands. Despite last year’s challenges, many of these businesses were able to adapt and begin their expansion in the Netherlands. Other companies chose to put their expansion plans on hold until there was more certainty.

But what is it about the Netherlands that is so attractive to businesses? What makes the Netherlands interesting for expanding businesses – even during a pandemic?

Here are just a few reasons businesses from all over the world are choosing to start their business in the Netherlands in 2022.

Attractive Corporate Tax Scheme 

One of the significant drivers of the Dutch economy is the diversity among businesses. To enable this heterogeneousness, the Netherlands offers several attractive incentive programs that appeal to various types of companies. To list just a few, the Netherlands provides credit for R&D-related expenses, takes pro-active measures to prevent double-taxation between your home business, and supports new businesses financial relief programs.

Additionally, the Netherlands offers a highly competitive corporate tax scheme in Europe: the 2020 Dutch corporate tax rate was set relatively low at 16.5% for the taxable income up to and including €200,000 and above that amount, the rate is 25%.  The rates will further decrease to 15% and 21.7% respectively, in 2021.  Continue reading about the corporate tax scheme and trends here.

Flexible for all business types

No matter what your business goals are, there’s a great reason to achieve them in the Netherlands. To drive the diverse business culture in the Netherlands, there is something to be offered for any business type.

No matter what your company’s goals are, there are great opportunities to succeed in the Netherlands. Any business can benefit and find its match in the ecosystem and in the flourishing business environment in the Netherlands.

Headquarters:  Establishing your headquarters in the Netherlands provides your business with access to the competitive corporate tax rate and other vital qualities that make the country essential for businesses. Including the international orientation of the country, highly educated workforce, geographic access to the rest of Europe, and the ideal business climate.

Start-ups: As one of the most innovative countries in Europe, the community of start-ups in the Netherlands is robust and cooperative. Entrepreneurs get to take advantage of financial relief schemes for new businesses, world-class incubators and R&D facilities, and a path to a residence permit.

Research and Development: World-class research and facilities will provide R&D units with a competitive edge. In 2019, the Netherlands was the top producer of IP receipts and foreign direct investment outflow.

Logistics: Considered to be the “trade hub of Europe,” the Netherlands provides great access by land and sea to other countries within Europe. As a result, there are more distributions centers in the Netherlands than in all neighbouring countries combined.

Ideal Business Climate

Businesses frequently choose to move to the Netherlands thanks to its international orientation and otherwise ideal business climate for a variety of multinationals and new businesses.

90% of Dutch people are fluent in English, and even more, are multilingual in other languages. As a result, the country maintains a strong international orientation and is very accepting of foreign businesses.

The location of the Netherlands is ideal for businesses seeking to enter the European market. Nestled between Germany, France and just across the pond from the UK, conducting business with European neighbours will be simple. Additionally, the country is located right on the coast and enables businesses access and proximity to top-ranked ports.

Likewise, the Netherlands is a highly developed country with a first-class infrastructure and robust support for internationals expanding in the country. So no matter where you’re coming from, the Netherlands will meet (or exceed!) your expectations.

Highly Skilled Talent Pool

The Netherlands is a knowledge-based economy that invests in developing highly skilled local talent while attracting top talent from abroad. The country is home to some of the top universities in Europe and offers several attractive incentives for highly skilled foreign employees. To learn more about how the Netherlands attracts highly skilled talent, read the article on our blog here.

As a result of the Netherlands’ high-quality education and incentives for highly skilled employees, the Dutch labour force is considered to be one of the most skilled and educated in the world.

Strong network for International support

Thanks to the internationally-minded business culture in the Netherlands, starting a business as a foreigner in the Netherlands is simple. There is an entire market of firms that will supplement your business with the local knowledge and insight you need to get started.

From relocation experts who find employee housing to recruitment and talent specialists, corporate tax advisors, immigration specialists, and payroll solution. Foreign businesses have the luxury of choice.

As the one-stop-shop for starting your business in the Netherlands, we’ve created a list of helpful resources for working and living in the Netherlands.

Expand your business to the Netherlands 

Octagon Professionals is considered the “one-stop-shop” for foreign businesses and expats looking to establish themselves in the Netherlands. No matter what your business needs to achieve in the Netherlands, our firm can help guide you in the right direction or provide most of the services you need to succeed in-house.

To learn more about how Octagon Professionals can help you set up operations in the Netherlands, schedule a consultation with one of our experts.

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