Starting a business in the Netherlands

Flanked by Germany and Belgium, the Netherlands is strategically located in Western Europe, offering easy access to some of the EU’s most significant economies. With excellent road and rail infrastructure, nearly all locations in Western Europe can be reached within a day.

Additionally, Amsterdam Schiphol Airport, one of Europe’s busiest and most well-connected hubs, offers direct flights to many destinations around the globe, making the Netherlands an ideal gateway for international business.

The Netherlands also benefits from direct access to the North Sea, with major ports like the Port of Rotterdam. As one of the largest and most important ports in the world, it serves as a crucial link for international trade.

Another benefit is the ease of managing taxes, both locally and internationally. The Netherlands has an extensive tax treaty network, having agreements with more than 95 countries including China, Japan, India, the UK, Switzerland, Brazil, Singapore, and the UAE. If you are operating internationally, these treaties will reduce the risk of double taxation and ensure that income is taxed only once.

To help new and growing businesses, the government provides a reduced corporate income tax rate of 19% on the first EUR 200,000 of taxable income. For profits exceeding this threshold, the standard rate of 25.8% will apply.

The Netherlands offers businesses an advantage through its extensive network of Bilateral Investment Treaties (BITs). With more than 70 BITs currently in force, these treaties provide a robust framework for protecting foreign investments, offering safeguards against risks such as expropriation and discriminatory practices.

Dutch companies can leverage these BITs to secure their investments abroad, ensuring stability and legal protection even in politically uncertain markets. Many businesses also use Dutch holding companies to structure their global operations. These entities benefit from the Netherlands' robust legal system and favourable tax regime, offering a secure base for international investments.

Business support is available through a range of programmes. For example, the entrepreneur allowance enables you to deduct a portion of your profits before calculating your taxable income. This may then lower your tax burden during the initial stages of your business operation.

If you’re hiring foreign employees, you may apply for the 30% ruling to support them in managing the costs of relocating to the Netherlands. This is a tax advantage that allows eligible employees to receive up to 30% of their salary tax-free for a maximum of five years. This may make your offer of employment more appealing when attracting professionals from abroad.

Ranking among the best education systems in the world, the quality of education in the Netherlands develops talent who are ready to contribute to various industries. In fact, eight Dutch universities are in the Global University Employability Ranking 2023-24, with Erasmus University Rotterdam and Delft University of Technology leading in graduate readiness.

Majority of the Dutch workforce speaks English. Additionally, the Netherlands retains a sizeable portion of its international graduates. Data from the Central Bureau of Statistics shows that more are living and working in the Netherlands after graduation. This growing trend is an advantage for businesses seeking a cosmopolitan workforce in a global market.

Alongside a skilled workforce, the Netherlands offers a consistently high quality of life, matched by equally impressive productivity levels. In the World Happiness Report for 2024, the Netherlands is among the top happiest countries globally.

The country places a strong emphasis on having a healthy work-life balance, a value shared by both employers and employees. This balance is reflected in the adoption of flexible working hours and arrangements.

Yet, Dutch workers are among the most efficient in Europe. The draw of a high quality of life can play a key role in attracting and retaining top talent in your company.