Introduction
Relocating abroad opens many possibilities for every type of business: be it connecting with a global business network, or spreading your influence in another region. In question of business expansion within Europe – the Netherlands always stood out the most. With its position as the stable and economically competitive hub in the Europe, the Netherlands is always a safe and secure choice for entities who are interested in expanding their enterprises.
Economic scope
ING, Heineken, Phillips, Unilever – you name the company and there is a guarantee that it is already in the Dutch listings. It is to no surprise that the Netherlands remains popular choice for business entities interested in expanding or branching out their premises in a new place. The Netherlands holds the position of the most competitive economics within the EU: with one of the highest GDP per capita in the region and holding top positions in the most innovative economy ranking – the viability of Dutch economics is outstanding. Additionally, it makes Netherlands influential not only domestically or within EU, but also for multi-nationals and foreign businesses. As the Netherlands is in the marine gateway for international trade, Rotterdam being its major sea hub, it has created the country as one of the world’s most open economy.
Laws and Taxes – clear and straightforward rules
The Netherlands provides distinct headline tax brackets for corporate planning: lower profits are subject to a reduced corporate tax rate, while the remaining amount is subject to the standard rate. At the moment, the two-bracket structure places the lower band at approximately 19% for the first €200,000 of taxable profit and the standard rate at 25.8% after that. Subject, of course, to compliance and customised legal guidance, the Netherlands offers useful instruments (favourable withholding conventions, established IP and R&D regimes, and well-developed tax treaty networks) that make tax-efficient regional structuring feasible beyond headline rates.
Why is the Netherlands always the safest bet?
There are many other countries within European region that, at first, seem as better choice than the Netherlands. One of the examples is Switzerland – with friendly tax levies for international companies, or high specialization in R&D, to the general notability of the Switzerland of being the securest choice for investing. However, as not being the member of EU, Switzerland gives way to the Netherlands in the aspect of practicality in the European market.
With access to the EU supply chains, the Netherlands will visibly be more attractive to the clients who also intend to reach out for European market as a whole. Furthermore, open sea trade and both surface trade will only benefit companies with logistics and supplying challenges.
That said, Switzerland can be preferable where a company’s strategy relies heavily on Swiss banking, client confidentiality or specific local tax rulings. Yet, if a client is interested in flexibility of the legal systems for further business relationships with other states within Europe – the Netherlands will always be the most preferrable choice.
Take the next step
Still not sure? Consult our legal team – 30 minute call is the easiest step you can take to Resolve your expansion issues. After determining market access, anticipated tax results, and a reasonable time-to-market estimate, we will create action plan that outlines expenses and regulatory checkpoints.
With our tailored advise to your needs, you will be more than just close to Connect with the world beyond borders.
