The Netherlands is one of the countries sourcing the most foreign direct investment globally. A significant amount of their economy is built from these foreign investments, and the most important sectors are logistics, manufacturing, and information technology (International Trade Administration, 2022). But what are the reasons that the small country on the outside of Europe is such a popular hub for foreign investments?
Gateway to Europe
The Netherlands is one of the most competitive countries in the world, and they are the fifth biggest exporter of goods globally (World Competitive Center, 2023; Global Edge, 2023). With the biggest harbour and fourth largest airport in Europe, the country has gained the status of ‘gateway to Europe’, making them vital for importing and exporting goods. Moreover, the government is politically stable, has a pro-business climate, high English efficiency and a skilled workforce (PWC, 2023).
Legal benefits
Furthermore, Holland offers a beneficial tax regime. They have signed treaties with over 80 countries, guaranteeing the avoidance of double taxation on income. And there is a progressive income tax system, meaning that tax rates on taxable profits are 20% on earnings up to €200 and 25% after. Moreover, the Netherlands offers a 30% ruling. This ruling states that a highly skilled individual employed in the Netherlands can benefit from compensation for extraterritorial costs of up to 30% of the employee’s salary (RPS Legal, 2023). This ruling is made to attract more talent to the Netherlands, improving the competitive advantage of companies.
About us
The Netherlands is a great country to establish your business. The climate is perfect for trading but can sometimes be complicated. That is why working with a business partner who knows the market well is advisable. DMS Netherlands is a privately owned boutique corporate service provider. DMS has a highly-skilled, experienced, and educated team of professionals who are specialists in forging longstanding relationships and have been doing so for over 20 years. They offer Domiciliation+, Management, Administration and Liquidation, making them the ideal partner in business.