Why US companies choose a European headquarters in the Netherlands

US companies choose a European headquarters in the Netherlands because leaders can hire, sponsor specialists and work in English. In 2026, the data still supports that choice. The US Bureau of Economic Analysis puts US direct investment there at $1,044 billion for end-2025. Only the UK held more. Statistics Netherlands counted 3,665 US companies there in 2024.

How much US investment sits in the Netherlands?

More than in any other country except the UK. The BEA released its 2025 figures in July 2026. The US direct investment position in the Netherlands reached $1,044 billion at year-end. That is nearly 15% of the $7.14 trillion US companies hold abroad. The table below shows the five largest destinations.

Rank	Country	US direct investment position, end of 2025
1	United Kingdom	$1,114.7 billion
2	Netherlands	$1,044.0 billion
3	Luxembourg	$645.3 billion
4	Ireland	$511.9 billion
5	Canada	$488.1 billion
	All countries	$7.14 trillion

Source: US Bureau of Economic Analysis, Direct Investment by Country and Industry, 2025 (21 July 2026), historical-cost basis.

Read these figures with care, however. Holding companies account for 45.8% of the total US position abroad. So the totals reflect group structures as well as operating businesses.

Still, the operating footprint is real. Statistics Netherlands counted 3,665 US multinationals in the country in 2024, up 26% since 2020. That makes US companies in the Netherlands the largest foreign group by number. In 2022, they employed 245,850 full-time equivalents, according to an earlier CBS study.

Does a European headquarters in the Netherlands work if your target is elsewhere?

Yes, your European headquarters need not sit in the same country as an acquired company or your largest market. Instead, it needs to sit where leadership can hire, move people and serve the region. The target keeps its own entity, its contracts and its local employment law.

In practice, that base is often a Netherlands BV, the Dutch private limited company. Netherlands company formation takes a notarial deed and registration with the Netherlands Chamber of Commerce (KVK). However, formation is only the first step. The BV must also register for payroll taxes before it pays any staff. After that, it can hold your European subsidiaries and employ the regional team that runs them. WHILL set up its European headquarters in Amsterdam with Octagon in 2018 and has been a client since.

What makes hiring workable for a European headquarters in the Netherlands?

Three things stand out: widespread English, an English-language business court and a sponsor route for non-EU specialists. The Netherlands ranked first of 123 countries in the EF English Proficiency Index 2025. In addition, the Netherlands Commercial Court has offered proceedings and judgments in English since 2019.

For non-EU hires, only an IND recognised sponsor can apply for a highly skilled migrant permit. The same route covers US managers you relocate. Americans need a residence permit to live and work there long term. Octagon is an IND recognised sponsor, so it can employ and sponsor specialists before your entity exists. Our guide to the highly skilled migrant route in the Netherlands explains the requirements.

Pay packages can also use the 30% ruling in the Netherlands. Under it, employers can pay qualifying recruits from abroad up to 30% of salary tax-free. From 1 January 2027, that maximum falls to 27%, with transitional rules for some earlier rulings.

How is a European headquarters in the Netherlands taxed?

A Dutch BV pays corporate income tax of 19% on the first €200,000 of profit and 25.8% above that. The Tax Plan 2027, sent to parliament in September 2026, proposes no change to either rate. In addition, the innovation box taxes qualifying innovation profits at 9%.

For a holding structure, the participation exemption matters too. It exempts qualifying dividends from subsidiaries held at 5% or more. Moreover, the US–Netherlands income tax treaty, signed in 1992 and amended by a 2004 protocol, helps avoid double taxation. However, the right structure depends on your group’s facts. Confirm it with a tax adviser before you commit.

What should you weigh before choosing the Netherlands?

Weigh three things: a tight labor market, possible immigration changes and employer duties from day one. CBS counted 95 vacancies per 100 unemployed people in the second quarter of 2026. Unemployment stood at 4.0% in September 2026.

Meanwhile, the government’s July 2025 plan to tighten the highly skilled migrant scheme is not law yet. It would raise some salary thresholds and tighten sponsor rules, but it has no start date. Finally, employer duties for US companies in the Netherlands begin with the first hire. They include Dutch payroll, written employment terms and up to two years of sick pay.

Before you commit, map who employs your first people, where they work and which permits they need. Where the answer depends on your facts, take legal advice or ask Octagon.

Setting up your European headquarters in the Netherlands with Octagon

A European headquarters in the Netherlands works when people, permits and payroll are in place from the start. Netherlands company formation is only part of that work. Since 1987, Octagon has helped organizations move talent across borders and employ it in line with local law. You decide salaries, benefits and working arrangements, and we carry the employment administration and its compliance risk. To plan your first Dutch hires, contact Octagon Professionals at sales@octagon.nl.

Frequently asked questions

Why do so many US companies have a BV in the Netherlands?

A Netherlands BV gives a US parent a limited-liability company inside the EU. It can employ staff, own other European subsidiaries and apply to become an IND recognised sponsor. It pays corporate tax of 19% up to €200,000 and 25.8% above. In 2024, Statistics Netherlands recorded 3,665 US multinationals operating in the country.

Is English enough to run a business in the Netherlands?

For daily business, usually yes. EF’s 2025 index ranked the Netherlands first of 123 countries for English skills. Amsterdam’s commercial court can also hear cases in English. Still, letters from the Dutch tax authority and some official forms often arrive in Dutch. A local payroll provider can handle that paperwork for you.

How hard is it to hire in the Netherlands?

Hiring is competitive, but the market has cooled. Since late 2025, CBS has counted fewer open vacancies than unemployed people. In the second quarter of 2026, there were 95 vacancies for every 100 jobseekers. Employers with IND recognised sponsor status can also recruit outside the EU if candidates meet the salary thresholds.