Why is Holland an Attractive Country for Investors?
Updated on Thursday 19th May 2016
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The Netherlands provides a unique combination of features that encourage foreign investments and make the country a renowned and competitive business center.
The country has a strategic position within the European continent, which allows investors to base their trade and shipping activities here. This, together with accessibility and excellent infrastructure guarantee that the Netherlands is a very popular target for investors from Europe, America or Asia who have chosen to open companies in Holland.
A competitive tax system
The Dutch tax system offers foreign investors a corporate income tax at a 20 percent rate, calculated for the first 200,000 euro profits, and a 25 percent tax rate for profits that exceed 200,000 euros. Furthermore, the system also offers clarity and certainty in regards to future tax positions. Investors have other advantages when it comes to debts, loss structuring, dividend taxation, interests and royalties. The country allows for many tax reliefs and investment deductions. The “innovation box” is a special regime that allows for a preferential taxation of income derived from self-developed intellectual property. Also, shipping companies are subject to a tonnage taxation regime.
The Netherlands has signed a large number of double tax treaties (more than 95 such agreements) and companies that derive income both from the Netherlands and another country with which such a treaty is signed benefit from preferential tax rates.
Good financial and legal systems
Apart from a beneficial tax system, the Netherlands also has a transparent legal system that allows foreign investors to easily deal with any legal issues that may arise during business transactions, such as tax issues, patent or trademark issues. Foreign judgments can he enforced in the country under certain conditions and, as a member of the EU, the Netherlands implements all the relevant European laws regarding business and trade.
The Amsterdam area is home to a large number of globally-recognized banks and financial institutions. Many banks have opened branches in the Netherlands and contribute to the favorable financial system. Private equity investors and trust fund managers choose to base their activities here.
Highly qualified workforce
If you plan on setting up a company in Holland, you can choose from a variety of Dutch company types. If the company you plan to open has activities such as shared services center, customer care centers or a distribution and logistics operations, the Netherlands is a great choice for such activities as it provides a great business environment.
In addition, the Netherlands enjoys one of the most educated workforces, also flexible and motivated. Moreover, the majority of possible Dutch employees speak more than one foreign language, as such allowing them to fit in perfectly in international companies, in different types of industry.
Great infrastructure and logistics
Holland is also a very popular destination in Europe when it comes to transportation, as the largest seaport in Europe is found in Rotterdam. Schiphol Airport, Europe’s best airport for cargo transportation, as well as passenger transportation, is also to be found in Holland.
When it comes to technology and innovations, the Netherlands has invested in electronic commerce, communications, and outsourcing, as well as in high-speed internet and digital communication systems. It has also adopted the newest computer and cell phone technologies, creating as such a perfect environment for companies that are in need of modern technology to run their business.
I have had a very good collaboration with the specialists in company registration from CompanyFormationNetherlands.com. They answered to my requests rapidly and they managed to open a company in just a few days after I had sent all the required documents for my clients.