The Netherlands is a country with a long tradition of political and social stability, with a sophisticated legislation and a well-reputed fiscal system. The systems of corporate and tax statutes in The Netherlands are well developed and provide a sound basis for structuring complex transactions. Traditionally, The Netherlands is a country with an open economy and this is one of the main factors that contribute to The Netherlands’ strength as a base for international group structures.
Foreign owned enterprises enjoy the freedom of arranging corporate relationships and financing transactions in a manner that will maximise global revenues and return on capital. The Netherlands is an attractive base to structure real estate from, since the Dutch fiscal treatment of foreign branch income generally also applies to profits from real estate.
International groups often choose The Netherlands for setting up holding companies, investment companies, finance subsidiaries and licensing and service companies. Why? Because of the swift incorporation possibilities. An extensive network of tax treaties. A fiscal system offers ample possibilities of deducting expenses from gross income and a favourable treatment of losses. Moderate corporate taxation and no withholding tax on interest and royalty payments. Furthermore, there is the unique Dutch concept of the “participation exemption” thanks to which all benefits of a Dutch (holding) company resulting from a qualifying participation in both Dutch and foreign companies, whether dividends received or capital gains realised on the sale of the shareholding, are exempt from corporate income tax. Also, profits derived from an active foreign branch that has been taxed in the country of location of the branch are exempt from Dutch corporate income tax.
There are many good reasons to choose The Netherlands as your corporate base. Its business climate, the professional level of (inter)national advice from lawyers, notaries, tax advisors, and auditors. And of course our highly skilled and international staff dedicated to make the most of your success.
Geography |
Western Europe, bordering the North Sea, between Belgium and Germany - 52 30 N, 5 45 E |
Capital |
Amsterdam |
Time zone |
UTC+1 |
Population |
16,715,999 (July 2009 est.) |
Nationality |
Noun: Dutchman(men), Dutchwoman(women) Adjective: Dutch |
Languages |
Dutch (official), Frisian (official) |
Government type |
Constitutional monarchy |
Legal system |
Based on civil law system incorporating French penal theory; constitution does not permit judicial review of acts of the States General; accepts compulsory ICJ jurisdiction with reservations |
Economy overview |
The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 3% of the labour force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country has been one of the leading European nations for attracting foreign direct investment and is one of the four largest investors in the US. The pace of job growth reached 10-year highs in 2007, but economic growth fell sharply in 2008 as fallout from the world financial crisis constricted demand and raised the spectre of a recession in 2009. |
Currency |
Euro (EUR) |
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