The Netherlands is an advanced, modern and open economy with a strong international orientation and a liberal policy towards international business. This internationally focused economy has a level playing field for all types of companies.
Furthermore, the Netherlands has an excellent reputation as a financial service jurisdiction and operates a high-level financial system with easy access to a world class banking system. Before commencing services in Europe, many companies consider the Netherlands as the jurisdiction for their holding, trading and financial activities because of the beneficial tax regime, good business climate, strong financial sector, and more importantly, a pro-business environment. Business activities are actively promoted, with the quick and easy setting up of entities.
The Dutch tax and legal system has many features that make the country an attractive location for businesses with international operations. With the favorable fiscal climate for international holding companies, the Netherlands has an extensive network of tax treaties to prevent double taxation. The corporate income tax rate is 15% over the first Euro 395,000 and 25,8% for profits above Euro 395,000 (rates 2022).
Dutch companies enjoy considerable benefits when compared with companies incorporated in other European jurisdictions, such as:
- the participation exemption (dividends and capital gains on the sale of foreign subsidiaries are exempt from corporate income tax)
- no withholding tax on interest and royalties
- fiscal unity regime to freely set off profits and losses among group members
- the possibility of obtaining advance tax rulings and advanced pricing agreements from the Dutch Tax Authorities, giving certainty on future tax positions
The most common legal frameworks for setting up a business are a Private Limited Liability Company (B.V.) and a Public Limited Liability Company (N.V.). Other legal entities include Cooperative, Administrative Foundation and charitable Foundation.
- Administration (accounting, tax and legal)
- Start up and incorporation
- Swiss German
Fréderique Didwania - van Gelderen