5 Reasons to Start a Business in the Netherlands

While businesses worldwide face an evolving, uncertaint economic landscape, many are still able to find success by setting up (or expanding) their operations in the Netherlands. This is evident in the growing number of reinvestments from existing foreign investors, which increased from 19% in 2023 to 28% in 2024 of all supervised projects, according to the NFIA.

But what is it about the Netherlands that is so attractive to businesses? What makes the Netherlands interesting for expanding businesses?

Here are just a few reasons businesses from all over the world are choosing to start their business in the Netherlands in 2025.

Attractive Corporate Tax Scheme

One of the significant drivers of the Dutch economy is the diversity among businesses. To enable this heterogeneousness, the Netherlands offers several attractive incentive programs that appeal to various types of companies. To list just a few, the Netherlands provides credit for R&D-related expenses, takes pro-active measures to prevent double-taxation between your home business, and supports new businesses financial relief programs.

Additionally, the Netherlands offers a highly competitive corporate tax scheme in Europe: the 2024 Dutch corporate tax rate was set relatively low at 19% for the taxable income up to and including €200,000 and above that amount, the rate is 26%. Continue reading about the corporate tax scheme and trends here.

Flexible for all business types

No matter what your business goals are, there’s a great reason to achieve them in the Netherlands. To drive the diverse business culture in the Netherlands, there is something to be offered for any business type.

No matter what your company’s goals are, there are great opportunities to succeed in the Netherlands. Any business can benefit and find its match in the ecosystem and in the flourishing business environment in the Netherlands.

Headquarters:  Establishing your headquarters in the Netherlands provides your business with access to the competitive corporate tax rate and other vital qualities that make the country essential for businesses. Including the international orientation of the country, highly educated workforce, geographic access to the rest of Europe, and the ideal business climate.

Start-ups: As one of the most innovative countries in Europe, the community of start-ups in the Netherlands is robust and cooperative. Entrepreneurs get to take advantage of financial relief schemes for new businesses, world-class incubators and R&D facilities, and a path to a residence permit.

Research and Development: World-class research and facilities will provide R&D units with a competitive edge. In 2019, the Netherlands was the top producer of IP receipts and foreign direct investment outflow.

Logistics: Considered to be the “trade hub of Europe,” the Netherlands provides great access by land and sea to other countries within Europe. As a result, there are more distributions centers in the Netherlands than in all neighbouring countries combined.

Ideal Business Climate

Businesses frequently choose to move to the Netherlands thanks to its international orientation and otherwise ideal business climate for a variety of multinationals and new businesses.

90% of Dutch people are fluent in English, and even more, are multilingual in other languages. As a result, the country maintains a strong international orientation and is very accepting of foreign businesses.

The location of the Netherlands is ideal for businesses seeking to enter the European market. Nestled between Germany, France and just across the pond from the UK, conducting business with European neighbours will be simple. Additionally, the country is located right on the coast and enables businesses access and proximity to top-ranked ports.

Likewise, the Netherlands is a highly developed country with a first-class infrastructure and robust support for internationals expanding in the country. So no matter where you’re coming from, the Netherlands will meet (or exceed!) your expectations.

Highly Skilled Talent Pool

The Netherlands is a knowledge-based economy that invests in developing highly skilled local talent while attracting top talent from abroad. The country is home to some of the top universities in Europe and offers several attractive incentives for highly skilled foreign employees. To learn more about how the Netherlands attracts highly skilled talent, read the article on our blog here.

As a result of the Netherlands’ high-quality education and incentives for highly skilled employees, the Dutch labour force is considered to be one of the most skilled and educated in the world.

Strong network for International support

Thanks to the internationally-minded business culture in the Netherlands, starting a business as a foreigner in the Netherlands is simple. There is an entire market of firms that will supplement your business with the local knowledge and insight you need to get started.

From relocation experts who find employee housing to recruitment and talent specialists, corporate tax advisors, immigration specialists, and payroll solution. Foreign businesses have the luxury of choice.

Expand your business across Europe

Octagon Professionals is your trusted partner for expanding your business in Europe. Whether you’re looking to establish operations in the Netherlands or other key markets across the continent, our expert team provides the guidance and services you need to succeed.

To learn more about how Octagon Professionals can support your expansion into multiple European countries, schedule a consultation with one of our experts today.