Even for the smallest companies, global competition has become a reality and the ability to pursue opportunities in overseas markets is essential to long-term viability.
Creating a Dutch company can open completely new opportunities that will allow your business to take advantage of all the economic and legal privileges of the European Union. For example, to generate additional revenue, increase turnover and get a long-term visa or residence permit.
Millions of euros, Source: Eurostat, 2016.
US dollars corrected for Purchasing Power Parity.
Source: OECD, 2015.
The top EU countries in terms of the efficiency and effectiveness of its Customs and other border procedures, the quality of its transport and IT infrastructure for logistics, the ease of use and affordability of its shipping, and the level of professionalism.
Amongst countries in Western Europe, the Netherlands is the most attractive country for foreign companies looking to establish themselves in this part of Europe. This emerged from KPMG’s latest Competitive Alternatives survey into international business location costs faced by companies starting up in different countries. The survey is carried out by KPMG every two years.
As far as costs go companies get off cheapest in the Netherlands, followed by the United Kingdom and France. Within Western Europe, Germany is the most expensive country for starting companies.
The Netherlands is one of the five most competitive economies in the world. It has much to offer for foreign entrepreneurs and investors: for example, exceptional road, rail, sea and air infrastructure; digital infrastructure that is world-leading in terms of both speed and reliability; and a broad spectrum of (international) businesses with multilingual and productive employees. And besides the excellent business climate, there is the fantastic quality of life, with the Netherlands setting high standards in (international) education, healthcare and recreation.
With a competitive statutory corporate income tax rate in Europe—20% on the first €200,000 and 25% for taxable profits exceeding €200,000—the Dutch tax system has a number of attractive features for international companies:
A wide network of nearly 100 bilateral tax treaties to avoid double taxation and to provide, in many cases, reduced or no withholding tax on dividends, interest and royalties,
Clarity and certainty in advance on the tax consequences of proposed major investments in the Netherlands,
A broad participation exemption (100% exemption for qualifying dividends and capital gains), which is vital for European headquarters,
An efficient fiscal unity regime, providing tax consolidation for Dutch activities within a corporate group,
No statutory withholding tax on outgoing interest and royalty payments,
Favourable expat tax program with a 30% personal tax income advantage for qualified, skilled foreign employees.
André Beukes is an EU Management Consultant to international companies doing business in Europe. He provides clients with practical business support that makes a real difference doing business in the EU. “Put simply, I am here to help you meet your challenges. I believe in the importance of doing things correctly, meaning risks are reduced and problems are avoided.”