Introduction
Expanding abroad opens up many opportunities for any business, whether it is connecting with a global business network or building influence in a new region. When it comes to business expansion within Europe, the Netherlands has always stood out. As a stable and economically competitive hub in Europe, the Netherlands is a safe and secure choice for companies looking to expand.
Economic scope
ING, Heineken, Philips, Unilever: name a major company and it is likely already listed in the Netherlands. It is no surprise that the Netherlands remains a popular choice for businesses looking to expand or open a new establishment. The Netherlands is one of the most competitive economies in the EU, with one of the highest GDPs per capita in the region and top positions in innovation rankings. This makes the Netherlands influential not only domestically and within the EU, but also for multinationals and foreign businesses. With Rotterdam as its major seaport, the Netherlands is a gateway for international trade and one of the world's most open economies.
Laws and taxes: clear and straightforward rules
The Netherlands applies two corporate income tax brackets: lower profits are subject to a reduced rate, while the remainder is taxed at the standard rate. Currently, the lower bracket is 19% on the first €200,000 of taxable profit, and the standard rate is 25.8% on profits above that. Subject to compliance and tailored legal advice, the Netherlands also offers useful instruments, such as favourable withholding tax arrangements, established IP and R&D regimes and an extensive network of tax treaties. These make tax-efficient regional structuring possible beyond the headline rates.
Why is the Netherlands such a safe bet?
At first sight, other European countries may seem a better choice than the Netherlands. Switzerland is one example, with attractive tax rates for international companies, a strong focus on R&D and a reputation as one of the safest places to invest. However, because Switzerland is not a member of the EU, the Netherlands has the edge when it comes to practical access to the European market.
With direct access to EU supply chains, the Netherlands is particularly attractive to companies that want to serve the European market as a whole. Its sea, road and rail connections also benefit companies with complex logistics and supply needs.
That said, Switzerland can be the better option where a company's strategy relies heavily on Swiss banking, client confidentiality or specific local tax rulings. For companies that value a flexible legal system and want to do business across Europe, however, the Netherlands is often the most attractive choice.
Take the next step
Still not sure? Consult our legal team: a 30-minute call is the easiest way to Resolve your expansion questions. Once we have assessed market access, expected tax outcomes and a realistic time to market, we will prepare an action plan setting out the costs and regulatory milestones.
With advice tailored to your needs, you will be well placed to Connect with the world beyond borders.
