When it comes to expanding a company globally, selecting the right location is crucial for success. The Netherlands renowned for its business-friendly environment and strong economic stability, stands out as an excellent choice. With a strategic geographical position, highly skilled workforce, advanced infrastructure, and a culture of innovation, the country offers numerous advantages to companies looking to expand. Eager to learn more? Read on to discover reasons why the Netherlands is a perfect destination for your company expansion.
Strategic location and connectivity
Situated in the heart of Europe, the Netherlands serves as a gateway to a market of 244 million consumers within 1000 kilometers. With exceptional transportation infrastructure, including the Port of Rotterdam and Amsterdam Airport Schiphol, the country offers unparalleled international trade and logistics connectivity. Furthermore, ranking at the top of the World Bank Logistics Performance Index, the Dutch infrastructure system is powered by 942,000 Dutch logistics specialists who continuously work on making the system smarter and more sustainable.
Stable and open economy
The Dutch economy is seen as the world’s 8 freest in the 2023 Index, and repeatably scores high in global rankings for competitiveness, and ease of doing business. What’s more, the Netherlands consistently maintains a GDP per capita above the EU averages surpassing most nations in that regard. All in all, the Dutch country strikes as stable and transparent, making it an attractive choice for foreign investors.
Highly educated and multilingual workforce
English proficiency is exceptionally high in the Netherlands (ranking as the highest level of non-native English speakers worldwide in 2022). Needless to say, most Dutch citizens are fluent in English, and many companies conduct their business in English. Furthermore, the Dutch nation is known for its comprehensive education system, resulting in a workforce being not only multilingual but also highly skilled.
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Innovation and research ecosystem
Ranking 4th on the 2022 European Innovation Scoreboard – the Netherlands actively promotes innovation and supports research and development. Hence, the country has a well-established network of research institutions, universities, and innovation hubs that encourage collaboration between academia and industry.
Additionally, the government offers attractive incentives for research and innovation activities. For example, through the WBSO program, innovative companies that focus on research and development can reduce their wage costs and other related expenses like prototypes and research equipment. Moreover, the Innovation Box offers a favorable 9% tax rate for income generated from patents and their development.
Access to international markets
Expanding to the Netherlands provides companies with access to the European Union’s vast single market, offering a customer base and supply chain integration across borders. Furthermore, The country’s membership in the EU and its extensive network of trade agreements make it an ideal launchpad for companies targeting the European market.
Favorable tax climate
Let’s not forget about the Dutch competitive tax regime, designed to attract international businesses. It offers various tax incentives, including participation exemption on dividends, favorable tax treaties, and research and development tax credits. Currently, in the Netherlands, the corporate income tax rates stand at 19% for taxable profits up to €200,000, and 25.8% for taxable profits that exceed €200,000.
Thriving startup ecosystem
The Netherlands is home to a vibrant startup ecosystem, with Amsterdam and other major cities hosting numerous tech startups and incubators. Consequently, this entrepreneurial environment fosters collaboration, knowledge-sharing, and access to venture capital, creating opportunities for synergy and growth for established companies.
Sustainable and green initiatives
The Dutch government plans to reduce the Netherlands’ greenhouse gas emissions by 49% by 2030 (compared to 1990 levels) and achieve a 95% reduction by 2050. With significant investments in sustainable technologies and renewable energy, the Netherlands leads the way in offshore wind energy, circular economy practices, and green transportation. Hence, expanding to the Netherlands allows companies to leverage these advancements and appeal to the eco-conscious consumer base, thanks to the country’s strong commitment to sustainability.
At a glance
Expanding your company to the Netherlands gives you access to a vibrant and forward-thinking market, a talented pool of professionals, and a supportive ecosystem that promotes growth and innovation. Whether you are a startup looking to scale or an established company seeking new opportunities, the Netherlands provides the ideal environment to thrive and succeed in the heart of Europe.
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