With its strategic positioning, political stability, European Union benefits, well-educated workforce, and welcoming business environment, the Netherlands has frequently been touted as an ideal location for international business expansion. However, if you’re in the early stages of researching the prospect of establishing a company abroad, you might seek further compelling reasons to consider the Netherlands as your preferred destination. At Unusual Companies, our expertise lies in facilitating business establishment and growth in the Netherlands through a comprehensive array of services. In this blog, we’ll systematically explore the myriad advantages of establishing a company in the Netherlands.
Overview of the Dutch economy
One of the critical considerations for entrepreneurs when choosing a market to establish their company is the state of the country’s economy. According to assessments by the Organisation for Economic Cooperation and Development (OECD) and the US International Trade Administration, the Netherlands is an attractive choice. The OECD evaluation highlights the country’s rapid return to its pre-pandemic growth trajectory. At the same time, the US International Trade Administration points out its appeal to over 170 million consumers who are European Union citizens within a 500-kilometre radius.
The Netherlands boasts significant economic advantages, notably as the home to the Port of Rotterdam, Europe’s largest port, and Schiphol in Amsterdam, the fourth-largest airport in the European Union. It holds a prominent position as one of the world’s major trading nations. With a GDP exceeding $1 trillion, the Netherlands ranks as the fifth-largest economy within the European Union. Moreover, it has demonstrated a higher resilience to the economic challenges of 2023 than other European countries, showcasing a stable economic foundation.
4 key reasons to establish a company in the Netherlands
The resilience of the Dutch economy in the age of global crises can be explained by the Netherlands' business-friendly environment, multilingual and highly educated talent pool, innovation in its DNA and strong digital infrastructure. Government support offered to entrepreneurs and companies who want to invest in the Netherlands makes the country even more desirable when considering where to establish a company.
1. Netherlands business-friendly environment
Ranked 6th in the world according to the Management Development Institute's 2022 World Competitiveness Ranking, the Dutch business environment offers access to 95% of Europe's most lucrative consumer markets with its strategic location. The Dutch tax system and stable legal climate make the country one of the least complex countries to do business in, according to the 2021 Global Business Complexity Index.
The Dutch government support for businesses
The Dutch government, considered one of the most effective governments in the world by the World Bank, is also very generous in terms of government support for businesses in the Netherlands. Adopting a competitive corporate income tax policy, the country encourages participation in R&D activities with supportive financial programs. Thanks to the Netherlands' stable government and accessible, collaborative tax administration, companies can act with confidence that their investments in the Netherlands will be protected at their highest value and that the tax authorities will operate with transparency. In addition to the Dutch government's support that technology and innovation-focused businesses can benefit from, establishing a company in the Netherlands provides access to a vast network of 100 bilateral tax agreements to prevent double taxation and reduce withholding costs.
2. Multilingual, highly educated talent pool
In the Global Remote Working Index 2023, endorsed by the World Economic Forum, the Netherlands secures a prominent position among 108 countries, affirming it as a top choice for remote working. This accolade, coupled with the pivotal role played by esteemed institutions like the University of Amsterdam, Leiden University, and Delft Technical University in shaping a highly skilled workforce, imbues the Dutch labour force with multilingual proficiency and a commitment to lifelong learning.
3. The Netherlands’ DNA: Innovation
The Netherlands’ innovative spirit is ingrained, as affirmed by the World Intellectual Property Organisation’s Global Innovation Index, which consistently bestows high rankings upon the country. These accolades stem from the Netherlands’ strengths in entrepreneurship policies, government efficiency, robust startup and scale-up funding mechanisms, and effective collaboration between universities and industries. This innovation-centric ethos extends to the Dutch industrial landscape, boasting numerous globally acclaimed companies engaged in R&D pursuits. Furthermore, the Netherlands enjoys international recognition for its thriving business networks and innovation clusters across diverse sectors, including agriculture, food, life sciences, healthcare, high technology, chemicals, clean energy, IT, and the creative industries.
4. Strong digital infrastructure
According to the EU Digital Economy and Society Index 2022, the Netherlands is also among the leading countries in digital skills, digital public services and businesses’ integration of digital technology. This situation, made possible by the strong digital infrastructure offered by the Netherlands, turns the Netherlands into a robust centre for startups working in areas such as the digital economy, gaming industry and quantum technologies.
Discover Unusual Companies services for your company's growth journey in the Netherlands
The advantages of setting up your company in the Netherlands are boundless. If the aforementioned benefits alone suffice to convince you to make the Netherlands your next destination for business growth, we are fully prepared to serve as your trusted partner in establishing a company in this dynamic country. At Unusual Companies, we provide a comprehensive range of services to support your journey in the Netherlands, encompassing everything from Company Establishment to Dutch Startup Visa Consultancy, along with a specialized Business Accelerator Program tailored for Startups. To explore the opportunities further, simply complete the form, and our experienced team, with a track record of successfully establishing over 400 companies, will be in touch with you shortly.
