Foreign Companies are Establishing Their Businesses in the Netherlands: 6 Reasons

In this article, we will cover the various reasons why foreign companies are establishing their businesses in the Netherlands including its favourable tax environment, skilled workforce, etc. Consult with our company formation experts today to register your business in the Netherlands.


    Note:This form is not for job seekers or salary employees. Thank you.

    Table of Contents

    reasons why foreign companies are establishing their businesses in the netherlands


    In the dynamic landscape of global commerce, strategic decision-making plays a pivotal role in determining the success and longevity of a business. When it comes to alternatives for growing businesses, the Netherlands stands out as a haven of opportunity, drawing in foreign corporations to set up businesses there. However, what is it about this little European country that attracts foreign commercial endeavours so much? Let’s delve into the reasons why foreign companies are establishing their businesses in the Netherlands.

    What are the various reasons why foreign companies are establishing their businesses in the Netherlands?

    Here are some of the reasons foreign companies are establishing their businesses in the Netherlands:

    1. Strategic Gateway to Europe:

    The Netherlands enjoys a prime location sandwiched between major economic powers, including the United Kingdom, Germany, and France. This geographic advantage means easy access to the more than 500 million consumers that make up the large European market. Trade and cooperation are encouraged by the proximity of major European cities like London, Paris, and Frankfurt. The Netherlands also has first-rate infrastructure, with the largest port in Europe, the Port of Rotterdam, offering unmatched access to international markets.

    2. Pro-Business Environment:

    The Dutch government constantly works to create an atmosphere that is friendly to international companies. They provide investors with certainty and security by providing a transparent legal system and a stable political environment. In addition, the government enforces pro-business policies that facilitate the establishment and operation of businesses in the Netherlands by streamlining laws and streamlining bureaucracy.

    3. Favorable Tax Landscape:

    The Netherlands offers a competitive corporate tax rate of 19% (up to €200,000 profit), making it an attractive location for businesses looking to optimize their tax strategies. Additionally, the country has a comprehensive network of double taxation treaties with over 120 countries, preventing businesses from being taxed twice on the same income. The Netherlands is a financially favorable site for foreign companies because of these features as well as several tax benefits for research and development.

    4. Multilingual and Extremely Skilled Workforce:

    The Netherlands boasts a highly educated and multilingual workforce. Over 90% of the Dutch population speaks English fluently, alongside a significant portion proficient in other languages like German and French. This easily accessible pool of qualified, multilingual personnel supports efficient communication and teamwork among a varied workforce, meeting the demands of global corporations.

    5. Innovation Hub:

    The Netherlands has created a vibrant innovation environment that is driven by a spirit of cooperation and entrepreneurship. As a result of the government’s strong funding of R&D projects, the country is a hub for innovative technology advancements. Because of the atmosphere’s promotion of creativity and innovation, companies seeking to lead the way in technological advancement are drawn here.

    6. Sustainable and Socially Responsible Climate:

    The Netherlands actively promotes eco-friendly behaviours and renewable energy sources, making it a global leader in sustainability. Businesses looking to match their values with those of Dutch society and conduct business responsibly and sustainably can find resonance in this commitment.

    Why Choose the Netherlands over Other European Countries?

    While many European countries provide enticing advantages for foreign investment, the Netherlands stands out for having a special mix of elements that promote corporate success. Unlike its counterparts, the Netherlands places a high priority on innovation, sustainability, and diversity, which is in line with the goals and ideals of progressive businesses looking to have a significant global effect.


    The Netherlands offers a strong opportunity for international businesses looking to grow. The Netherlands offers a special set of benefits that promote growth and success, from its advantageous tax structure and pro-business atmosphere to its strategic position and highly trained workforce. The Netherlands is a great place to launch a foreign business, irrespective of your experience level or developmental stage.

    OnDemand International is a leading provider of business incorporation and support services, specializing in assisting foreign companies in setting up their businesses in the Netherlands. Our group of knowledgeable experts can help you every step of the way, from company formation and tax registration to legal and compliance matters. Contact us today to learn how we can help you navigate the intricacies of establishing your business in the Netherlands and unlock the potential of the European market.


    In the Netherlands, foreign businesses have a choice of several legal forms, such as branch offices, representative offices, private limited corporations (NV), and public limited companies (BV).

    The process of establishing a business in the Netherlands typically involves registering the company with the Dutch Chamber of Commerce (KVK), obtaining necessary permits and licenses, opening a corporate bank account, and fulfilling tax obligations.

    The Netherlands has a diversified economy with booming industries like technology, life sciences, logistics, agriculture, and renewable energy.

    The Dutch government offers various incentives and support programs to attract foreign investment, including tax breaks, grants for research and development, and tailored assistance for startups and scale-ups.