For many US multinationals UU And international companies, the Netherlands can be an attractive destination because of the excellent tax benefits and their tax treaties with many nations. The Netherlands also has a double taxation treaty with the United States of America, to avoid double taxation on income.
The Dutch economy is prosperous, advanced and open to international investments. The Netherlands is also among the oldest and most reliable business partners in the United States. The historical roots of this relationship go back to the War of Independence.
The tax system in the Netherlands offers incentives to encourage business and innovation activities. The favorable business climate does not bring benefits only for Dutch businessmen. The Netherlands is open to international investment and has become the home of many qualified foreign workers. It also houses the European headquarters of many US corporations. UU., Including UPS and Coca-Cola.
Especially the global tax system that US citizens must comply with makes a double taxation treaty a necessity rather than a luxury. Without a double taxation treaty, a US citizen. UU I would have to hire a local tax attorney and one in the US. UU
With a double tax treaty, the guidelines are known and the double tax can be avoided.
The European gateway to commerce.
The Netherlands relies heavily on international markets, as more than 50% of its annual GDP comes from trade with foreign partners. The country is in the top 10 worldwide for export: a great achievement for its modest size. American companies that establish offices in the Netherlands can take full advantage of the advantages offered by their strategic location. They can use and serve the markets of the EU, Eastern and Central Europe, Africa and the Middle East.
However, around 65 percent of all Dutch exports go to only 5 countries: the United States, Great Britain, France, Germany and Belgium. On the one hand, this is excellent for US companies looking to develop business relationships. On the other hand, it is a limiting factor for business owners who plan to operate on a larger multinational scale.
The Netherlands often serves as a center for businesses. A significant percentage of imports (for example, computers) are re-exported immediately without being processed. Each year, millions of tons of North American and Asian products arrive in Amsterdam and Rotterdam to be distributed in other parts of the continent.
Opportunities for business
Some world-famous Dutch companies are doing quite well in their national market: from ING and Shell to Heineken, Unilever and Philips. However, this should not discourage you from investing in the Netherlands, especially if your business is in the service industry.
In recent years, service demands have increased and have quickly become the largest sector of the Dutch economy, accounting for approximately 70 percent of GDP. Trade is the largest industry in the sector, followed by telecommunications, construction, transport, insurance, banking and different financial services. According to experts, significant growth is expected in the field of communications and information technologies. This is not surprising, since the Netherlands is among the most "connected" countries in terms of e-commerce, outsourcing and communications.
The stability of the Netherlands is reflected in its employment sector. Any US company that intends to develop a business and hire staff must be prepared for interactions with works councils and unions. The negotiation is typical for the Dutch and the unions have strong relationships with the government and employers' organizations.
Forget about employment at will. Once you hire personnel with permanent contracts, you must pay attention to the rights of your workers and comply with labor regulations. As a member state of the European Union, the Netherlands follows the European regulatory framework, including the Working Time Directive. Limit employee work hours to 48 per week, on average. However, people can voluntarily agree to a longer work schedule and opt for this right. US companies with businesses in operation in the Netherlands should seek advice to ensure that relations with their employees are organized in accordance with the regulations from the beginning.
Business culture in the Netherlands
According to some, the Dutch approach to business is completely different from the American one, but that is an overgeneralized statement and stereotype. Holland and the United States would not have been traditional partners if they did not work well together! However, Americans should keep in mind some peculiarities when doing business with Dutch companies.
The Dutch are honest, direct, serious and very direct. Sometimes this could be perceived as hardness and lack of care. Be specific and concise in the interactions of your business. The Dutch go directly to business without socializing much. The handshakes always have a purpose. They do not make empty promises and expect the same from you. If he says he will do something, even if it is small and inconsequential, he is expected to complete the task. When negotiating, any hint of deception, evasion or secrecy can ruin the deal, because trust is fundamental to the prosperity of labor relations in the Netherlands.
Establishing a business in the Netherlands
According to the World Bank's business index, the Netherlands is ranked 32 in the world. The standard legal form for new companies is the BV (Besloten Venootschap), also known as a private company with limited liability. There are no minimum capital requirements and it takes three days to incorporate your business.
It is not surprising that Holland is among the leaders in international trade. The country is perceived by many as the Portal of Europe, opening a world of new possibilities.