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When asked to name a Dutch city, people tend to come up with Amsterdam, the capital of the Netherlands, famous for its historic landmarks and open-minded citizens. They also think of Rotterdam – proud with the smartest port in the world, or the inventive city of Eindhoven situated in the Brainport region of Europe. But how about Den Haag?

The Hague is home to the Dutch government and has close to 500 000 residents. It is full of legislators, diplomats and leaders on the global business scene. No wonder that it is the birthplace of many international innovations, laws and ideas. Read this article to learn about this important Dutch city and contact us if you would like to receive more information on doing business in Den Haag.

The city of The Hague

The Hague, home to the classic paintings of Vermeer and the royal family, has an important place in the history of the Netherlands. It was established in 1230, originally as hunting grounds of the Counts of Holland. Its name originates from “s-Gravenhage”, meaning “The Hedge of the Count”. The city became the official seat of the Dutch government in 1588.

The Hague continues to host the Dutch cabinet, Supreme Court, State Council and States General. The Gothic Binnenhof complex, a castle serving as government seat, is the oldest functioning parliament house in the world.

The Hague: An international centre of justice and peace

The impressive historical legacy of The Hague in terms of government has earned its recognition as an international centre of justice. The Hague International Peace Conference of 1899 was the first of its kind in the world. Less than half a century later the UN selected the city as its international law centre. Today The Hague also accommodates the international justice and criminal courts where global disputes are often resolved.

Dedicated to security and peace, the city puts a lot of effort in supporting Holland on its way to becoming a secure gateway to the European continent. It encouraged the development of the world’s top cluster in the field of security: the Security Delta (HSD). It fosters cooperation between knowledge institutions, businesses and governments with the aim to achieve superior cybersecurity and build critical infrastructure.

The Hague is home to 400+ companies operating in the field of security. American data and technology companies like Dtex Systems and LeoStat have also recently established registered offices in the city.

The Hague: An attractive business hotspot

Thanks to its strong foundations, Den Haag is a very attractive destination for businesses. Various companies like Siemens, APM Terminals, AT&T, Shell and Samasource have established their European headquarters in the city. As a matter of fact, as many as 49 international companies made investments in the city in 2016.

In addition to private companies, Den Haag also hosts 240 foreign organizations, NGOs and tribunals, e.g. NATO’s Agency of Information and Communication, Europol and the European Patent Office.

The Hague: An experimental ground for innovations

NGOs, private companies and the government work together on this ideal ground for testing new ideas.

Some of the most recent innovative fields of work include the use of drones in emergencies, green energy alternatives and simplification of complex data communication. The first centre for Robotics and Artificial Intelligence of the UN was also established in The Hague.

The city boasts 20+ international higher education institutions and schools that support new ventures. Leiden University is the oldest in Holland and its Innovation Centre is located in the city of The Hague. The Hague also has an official centre for entrepreneurs called Impact City. It hosts programmes like the Innovators Challenge and Startup in Residence.

In case you are interested in starting a business in Den Hague, contact our specialists in company formation. They will gladly provide you with more information on company establishment and investment opportunities in the country.

The increasing popularity and global growth of cryptocurrencies have resulted in questions regarding the regulatory status of this novel financial phenomenon. Cryptocurrencies are entirely virtual and organized via a network called a blockchain. This is a register keeping secure records of all completed transactions. The blockchain is practically controlled by no one, as it is distributed across all computers with Bitcoin wallets. Therefore there isn’t a single institution that manages the network. Logically this implies the presence of various legal and financial risks.

Cryptocurrency start-ups raise early funds by using the so-called Initial Coin Offering (ICO). In an ICO campaign a company sells digital coins publically to finance its operations and achieve other business goals. ICOs are currently unregulated by governmental agencies or law. The lack of statutory framework has been a matter of concern due to the considerable potential risk assumed by the investors. Consequently, volatility has also become an issue. Unfortunately, investors losing funds in this process have no standard options for recovery of the amounts.

Virtual currencies and the EU

The risks inherent to virtual currency use have prompted the EU institutions to adopt regulations. Still, regulation at the EU level is complicated because of the developing EU statutory frameworks and the inconsistencies across the Member States (MS).

Cryptocurrencies remain unregulated at the level of the European Union and without close supervision by public authorities. Nevertheless, the participation in virtual currency schemes may lead to liquidity, credit, and legal and operational risks. Therefore MS authorities should decide whether to accept or, alternatively, regulate and formalize virtual currencies.

Cryptocurrencies in Holland

The national Act on Financial Supervision (AFS) states that electronic currencies are monetary values stored magnetically or electronically. Their intended use is to perform transactions and they are accepted as payment by parties different from the party issuing the money. Cryptocurrencies, however, do not match the definition of electronic money, since they do not meet all statutory criteria. This begs the question how exactly to define them.  In the framework of the AFS a virtual currency is just an exchange medium. Individuals are free to perform barter trade and no legal permission (license) is required. The Finance Minister expressed an opinion that it is not advisable, at least up to this point, to revise the existing definition of e-money, considering the comparatively low acceptance level, restricted scope and limited economic importance of bitcoins. He pointed out that only consumers carry the responsibility for cryptocurrency use.

The District Court of Overijssel and the Finance Minister of the Netherlands accept virtual currencies, e.g. Bitcoin, as exchange media. In an appeal procedure, the Dutch Court acknowledged that bitcoins qualify as objects for sale by virtue of Art. 7:36 of the Dutch Civil Code. It also concluded that virtual currencies can be considered as exchange media, but they do not satisfy the criteria for legal tender. On the other hand, the Court of Justice of the European Union (CJEU) ruled that cryptocurrencies should be perceived as a means of payment, thus suggesting indirectly that they are comparable with legal tender.

Read here for information on bitcoin and tax

Conclusions

The issue of cryptocurrency regulation proves to be quite complex and the CJEU will likely need to go into terminology clarification. Any MS choosing to adopt terminology different from the legislation of the EU may thus cause difficulties with law interpretation on the background of the European Union legislation. Having this in mind it is recommended that MS follow the terminology of the common EU legislation while amending their national laws.

In case you are planning to start a cryptocurrency business in the Netherlands, do not hesitate to get in touch with our team. They will give you more information on the situation with cryptocurrencies in the Netherlands and help you establish your business.

The Netherlands provides a lucrative climate for foreign entrepreneurs with excellent infrastructure and a constructive strategy for international business. The corporative business environment is among the political priorities. According to Forbes, the Netherlands ranks 3rd among the world’s top business destinations for 2017. And 4th according to the World Economic Forum 2022.

Many foreign companies benefit from the convenient business climate in the Netherlands. Foreign companies creating jobs and contributing to the country’s economy are highly valued.

The present guide to business culture is intended to help international exporters when dealing with Dutch partners.

Country profile

Language

The official language is Dutch, spoken by approximately 90 percent of the population. Dutch is the most widely used language with respect to national business affairs. Still, the capital of Amsterdam recognizes English as official. In total above 90 percent of the country’s inhabitants claim to have conversational English skills. Therefore many companies planning export to Holland rely on English in their business interactions.

Connectivity

Holland is famous with the best broadband coverage worldwide. About 99 percent of the households have a connection. The average speed of the broadband connection is also among the fastest on the globe: an important prerequisite for various businesses. A number of companies take advantage of this situation. It is not a coincidence that approximately a third of the data centers in Europe have chosen Amsterdam as a location. The most extensive internet exchange in the world is provided by AMS-IX.

Economy

According to IMF, Holland has the 18th largest GDP in the world. Its GDP amounts to USD 777.5 billion. It is also rated 16th as regards wealth per individual averaging USD 184 378 per adult. The Dutch economy is the 6th largest in the EU and it is quite diverse. Ninety-five percent of the top European consumer markets can be reached from Rotterdam or Amsterdam within a day. Thus Holland has a very strong position for trade. Technology, banking, shipping, trade, agriculture and fisheries have significant importance for the country’s economy. The most developed sector is foods, while other major industries are metallurgy, chemicals, machinery, services, tourism and electrical goods.

The currency of the Netherlands is the Euro. In 2002 it replaced the local guilder.

Export and import

The key partners of the Netherlands in import and export trade are Belgium, Germany, Great Britain, Italy, France, China, Russia and the United States. The country is rated 2nd in the Global Enabling Trade report for 2016, 3rd in the Index of Global Innovation for 2017 and 5th in the global ranking of competitive economies of the Swiss IMD.

Centuries ago the geographic location of the Netherlands determined its position as a key trade center and the country has retained this role ever since. The port of Rotterdam is the largest in Europe with approximately 450 M tonnes of shipments passing annually through it. The Netherlands offers much economic freedom, coupled with highly qualified multilingual workforce.

The World Bank’s service for Solutions in Integrated Trade has established that the Netherlands’ import amounts to approximately USD 400 billion worth of products per year, while its export totals USD 445 billion.

The key export partners of the Netherlands in terms of monetary values are Germany (USD 99 billion/year), Belgium (USD 46 billion/year), the United Kingdom (USD 40 billion), France (USD 36 billion) and the US (USD 19 billion). The top export goods include medicaments, petroleum oils, telegraphic equipment and parts/accessories for automatic data processing.

The Dutch business culture

Dutch businessmen are known for their skilled, highly professional approach. The country’s system for higher education is rated 3rd worldwide and this is reflected in the local business culture. Dutch companies are famous with their high efficiency and productivity due to the skilled workforce, excellent IT infrastructure and practical labor laws in the country.

The visa option for highly skilled migrants enables companies to easily bring professional employees from overseas to Holland. As a result, the country is now home to at least 1 million international workers. In addition, the Dutch labor environment allows employers to easily hire personnel on part-time, flexible and temporary contracts. Thus the Netherland has an incredibly receptive and dynamic business environment.

Entrepreneurs planning to conduct business in Holland must have in mind some particular local customs. One important asset is punctuality. Meetings are organized in an efficient manner and end on time. Promptness is also essential as regards delivery times and commercial relationships.

Dutch business people are known for their honesty (the Netherlands takes the eighth place in the global ranking for Corruption Perceptions of Transparency International), so corruption and bribery are out of the question in their environment. Even the giving of gifts is rather uncommon.

Corporate environmental considerations and social responsibility are quite significant in Holland and must be considered when developing a business strategy.

If you are intending to start a company in the Dutch import/export sector, feel free to get in touch with our local specialists in company establishment. They will give you more details and legal assistance.

The media report daily on the mind-blowing achievements of the global leader in high technology – the Silicon Valley in San Francisco. Still, they are missing something. A country that appears quite small on the map is slowly emerging as a new leader in technological innovations. Thanks to its first-class technological and scientific advancements and workforce with excellent qualifications, the Netherlands will soon rival the Silicon Valley.

The home of Philips has the best business climate for start-ups in the EU, highly knowledgeable experts with a knack for technology and open business culture. It has developed an extraordinary European ecosystem for entrepreneurs.

It may seem odd to compare a country with a city, but this is not the intention of the present article. The Netherlands is bigger not only with respect to population and size, but also as regards entrepreneurship and disruptive innovation.

Furthermore, in contrast to the other major leaders on the European sci-tech scene – Germany and the United Kingdom – the Dutch expertise is not centralized in the capital. A number of flourishing technology hubs are scattered on the territory of the Netherlands. The start-up ecosystem radiates from the southern to the northernmost parts of the country and its achievements in the field of science and technology can surely surpass the triumphs of the prevailing backbone of high technology – the Silicon Valley in San Francisco.

Amsterdam

Western Europe’s start-up capital, Amsterdam, is rated third for scale-ups and start-ups in 2016. It attracts tech-savvy experts and growing businesses. Its programmes StartupDelta and StartupAmsterdam support start-ups in their development, establishment of connections and growth. The capital also has its own Science Park housing research institutes, excellent technical facilities, a Database of Business and Science and a special area for cooperative work of innovative start-ups operating in the field of science and high technology.

The financial technology unicorn Adyen was established in the start-up ecosystem of Amsterdam. Now the company is worth USD 2.3 billion. Its clients include Airbnb, Spotify, Uber and Netflix. Furthermore, many companies established in the Silicon Valley have registered offices in Amsterdam, including Uber, Cisco and Google.

Read more on starting your company in Amsterdam

Eindhoven

Eindhoven, where the company Philips was born, also hosts the world’s smartest square kilometre: the business park High Tech Campus. It was the first home of Philips Research (NatLab). Presently the park is a centre for talented specialist qualified in the field of technology with 140+ high technology institutes and companies, including IBM, ASML, NXP, Intel and Philips located there.

Additionally, Eindhoven has an extensive network of Research and Development and academic facilities, such as the Eindhoven TU/e. The extraordinary design and high-tech climate in Eindhoven has prompted the Singularity University based in San Francisco’s Silicon Valley to open a hub for innovations in the city. Its mission is to gather industry leaders representing research institutions, start-ups, other businesses and the government with the aim to design and test in practice technological solutions to humanity’s greatest challenges.

Groningen

Famous with its talented specialists, Groningen is second only to Amsterdam with respect to the number of prosperous start-ups. The Deloitte’s Technology Fast 50 ranking includes the fifty fastest growing technology companies in the Netherlands. In the 2016 ranking, 12 companies were located in Amsterdam and 7 in Groningen. Furthermore, the internet search giant Google chose Eemshaven (North Groningen) as the location of its new data centre.

Groningen is also the home of the most resourceful business growth accelerator for existing companies and start-ups in Northern Holland, VentureLab North. The Founded in Groningen portal supports, promotes and connects companies, initiatives and start-ups. Its impressive background includes 435 businesses established in the city.

Delft

Besides hosting the production site of the popular Delftware, the city is the home of the largest technological university in the country – TU Delft. It also has one of the greatest student populations in the country: approximately 10 to 15 percent of its 100,000 citizens are students. This lively city is focused on the development of high technology innovations. Hardware and engineering are two of the strong areas of work in Delft.

The high technology ecosystem of the city is the birthplace of YES!Delft, an incubator for start-ups. Established 12 years ago, it has already helped 200+ companies working in the field of technology, including inkless printing and modern laser technologies.

Utrecht

The city is among the most sustainable, healthiest environments worldwide and has given rise to many modern innovations. It has a Science Park, famous for its achievements in 3D-bioprinting, regenerative medicine, cancer research, organoids and stem cells, and smart solutions for urban sustainability. The park hosts 80+ businesses and organizations with a total labour force of 22,000 or about 21 percent of the city’s population.

Furthermore, the local ecosystem gave rise to a top 10 European incubator: UtrechtInc. The incubator also opened a creative centre for sustainability in start-ups called the Garage.

Read more on starting your company in Utrecht

The Hague

The City of Justice and Peace may be the last on our list, but it is definitely not the least in importance. The Hague is the spine of the Dutch security branch. It hosts the best European security cluster: the Security Delta. It helps start-ups in the field of cybersecurity, and in cooperation with the government, knowledge institutions and businesses it supports innovations in urban and national security, cybersecurity, forensics and critical infrastructure protection. The Hague Security Delta Campus is among the ten Dutch locations designated as major start-up hotspots by StartupDelta.

One of the many successful start-ups in the field of security established in the city is HackerOne, a Dutch-US company representing an ethical platform of hackers. Companies can employ hackers to search for security issues and bugs. In 2015 HackerOne generated a profit of 25 million USD and has worked with Slack, Twitter and Uber.

Read more on starting your company in The Hague

Holland: the European Silicon Valley

Several other thriving technology hubs in Holland are also worth mentioning:

In summary, Holland fosters an extraordinary ecosystem for game-changing innovations and developments in the field of science and high technology, highly qualified IT professionals and aspiring entrepreneurs. Thus the country deserves to be called the European Silicon Valley.

In case you intend to establish a company in a popular Dutch start-up city, our specialists in company formation can give you more details on registering entities in The Netherlands and assist you throughout the process.

The service sector is the most advanced in Holland’s economy and accounts for over two-thirds of the Gross Domestic Product. The sector includes transport, insurance and banking. Four banks established in the country are ranked in the global top 60: Fortis, Rabobank, ING and ABN AMRO. They have a network comprising roughly 6500 branches in Holland and 500 more in 50 other countries. Meanwhile, more than sixty branches and subsidiaries of European, Asian and American banks operate in the country.

De Nederlandsche Bank

The history of the Dutch banking system dates from 1814, when DNB (De Nederlandsche Bank) – the first publically owned bank that offered non-convertible low-value currency – was established. Therefore it is considered as the central bank of the country and was included in the European Central Bank System (ESCB) in 1999.

DNB, part of ESCB, is an administrative body with independent management. Routine operations are supervised by its management board. DNB also has a Board of Supervisors of the Crown. It is appointed as recommended by the collective meeting of the boards of executives and supervisors. DNB’s shareholder meetings and the respective minutes are kept secret.

As of October 30, 2004, the Nederlandsche Bank and the Pensions and Insurance Supervisory Authority (called Insurance Board since 2001) have merged. Therefore the bank carries the huge responsibility of monitoring the abovementioned institutions, additionally to its traditional supervision of banking. Pension funds or insurance companies cannot be established without DNB’s approval. The bank grants its permission only in case the life insurance company or pension fund is managed by specialists and has adequate financial resources.

Types of Dutch banks

The Dutch banking system comprises the following institutions: saving banks, commercial banks, mortgage banks and credit unions.

ABN AMRO (including RBS, BSCH and Fortis) and ING are the most significant Dutch banks.

The Dutch banking system also contains a bank providing specialized services and products to individuals (POSTBANK) by working with the national post office. It handles more than seven million accounts.

Rabobank is a network of credit unions. Rabobank Nederland owns fist position in this network. The Dutch banking system includes numerous credit institutions (about 302 in total) along with CEB N.V.

Bunq is a relatively new Dutch internet bank which has its focus on individuals. This bank offers banking services for non-residents.

The Dutch banking system is quite concentrated and included in the global top five with an 86.8 percent total assets share.

Banking sector efficiency is assessed by the proportions of total bank assets and administrative expenses. Using this criterion, the Dutch system is deemed effective, based on the scoring for the past several years. Economic profitability (ROA) is also used as a performance measure. It depends on the proportions of aggregate bank assets and net profit.

If you need more details regarding the Dutch banking system or if you need assistance to open a Dutch bank account, please, call our local business consultants. They will provide more information and customized assistance.

If you plan to open a cafe, a restaurant or a hotel in Holland, there are numerous regulations and rules you have to comply with. This guide will help you to determine quickly the scope of your obligations.

The present plan is only a guideline. There might be other relevant obligations not mentioned here. Please, contact us, if you need further information.

Check if you meet the requirements for a long-term stay in Holland

Entrepreneurs planning to stay for long periods need to meet a list of conditions. Sometimes a permit for residence is necessary.

Choose your office and check the plan for local zoning

Your registered office should conform to the plan for zoning in the particular area. Alternatively, you can ask the authorities to make an exception or ask the municipality to alter the plan for zoning.

Submit an application for a permit to build

In case you plan to build, renovate or modify an existing construction, you will probably need to apply for an Omgevingsvergunning (a comprehensive permit to change physical aspects). In the past, this document was simply called a permit for building.

Consider the requirements for fire safety

To guarantee that the catering establishment is safe with respect to fire, you will most likely need a permit for occupancy (included in the Omgevingsvergunning). In particular cases, however, an occupancy notification may be sufficient.

Consider the rules for the protection of the environment

All owners of catering businesses need to respect various environmental guidelines. Most often filing an application for an Omgevingsvergunning is unnecessary. It is sufficient to register your company at the local municipality.

Submit an application for a permit to operate a catering company

Some municipalities require operating permits for catering businesses. The requirements are connected to decency, safety and public order.

Register your business with the Netherlands Food and Consumer Product Safety Authority (NVWA)

In case your company produces, sells or processes food products, a registration at the NVWA is necessary.

Prepare or acquire an approved hygiene code

Drink and food preparation needs to be in line with a code on hygiene. You can prepare such a code yourself or use an already certified document (e.g. of the Board of the Catering and Hotel Industry). Hygiene codes need to follow the European Hazard Analysis and Critical Control Points (HACCP) principles. The compliance to a hygiene code approved for the sector automatically fulfils all legal requirements.

Submit an application for a licence that allows you to serve non-alcoholic or alcoholic beverages

In case you plan to sell or offer alcoholic beverages for consumption in your business, you need to obtain a licence for alcohol from the local municipality (under the Catering and Licensing Act). A drink and food permit is sufficient for selling non-alcoholic drinks.

Obtain a permit for running a terrace

If you plan to service a terrace in public space or private property, you will most likely need a permit issued by the municipality. Terraces are permitted only as parts of existing hotels and catering establishments.

Obtain a permit for gaming machines

If you plan to install a gambling machine in the catering establishment, you need to apply for a specific permit at the local municipality.

Submit an application for music licences

You have to obtain a special permission for playing music in public. Sena and Buma regulate the permission and issue licences.

Identify potential sources of risks and assess them

If you plan to employ personnel, you need to draft the so-called risk inventory, complete with risk evaluation (RI&E) prior to opening your catering establishment. The catering and hotel (Horeca) RI&E model fits this purpose.

Register at the Dutch Trade Registry and Tax Administration

All new businesses need to be registered at the Commercial Registry of the Netherlands. Your details will be passed on to the tax authorities. Therefore you do not have to go through a separate registration procedure with the Tax Administration.

Our local incorporation agents can help you in the process of establishing a hotel, restaurant or bar. Please do not hesitate to contact us.

The Netherlands has a large network of agreements for avoidance of double taxation providing tax advantages to international investors establishing companies there. Among these agreements is the treaty with the USA. The first convention for the avoidance of double taxation between Holland and the USA was signed in 1992. Its first amendment dates from 1993.

Our local consultants specializing in company establishment can provide you with additional information about the Dutch tax system.

Scope of the double tax treaty between the Netherlands and the USA

The convention for avoidance of double tax between Holland and the USA covers:

Dutch foundations working in the United States are subject to special provisions that are also included in the double taxation treaty. These concern the US excise tax. Furthermore, the convention covers similar taxes applicable in both Holland and the USA.

The double tax treaty provisions apply on the basis of tax residency.

Taxation of natural persons in accordance with the double tax avoidance treaty between the Netherlands and the USA

In the Netherlands, residents pay income tax and local companies are liable for corporate tax. For the purposes of double taxation avoidance, all treaties concluded by the Netherlands include provisions covering corporate and income taxes.

International entrepreneurs establishing companies in Holland have the option to choose their tax residency, i.e. pick the country that will hold them liable for tax payment. Foreign taxpayers can choose to pay taxes in accordance with the agreement between Holland and the USA for the avoidance of double taxation or take advantage of the Unilateral Double Tax Avoidance Decree of 2001. The double tax avoidance treaty with the US stipulates that US residents who earn income in Holland shall benefit from credit with respect to taxation of interests, royalties and dividends.

Taxation of businesses in accordance with the double tax avoidance treaty between the Netherlands and the USA

Regarding the tax regime for US companies operating in Holland and vice-versa, the double tax avoidance treaty provides for permanent establishment status that covers:

The agreement for double tax avoidance is valid for facilities already established for 12 or more months.

Double taxes are avoided through reduction of the tax liabilities of Dutch companies in the US. On the other hand, Holland grants tax deductions to US companies operating simultaneously in the two countries.

Our Dutch consultants on company establishment can provide further information regarding the methods to avoid double tax by virtue of the Holland – USA treaty.

Amendments relevant to the double tax avoidance treaty between Holland and the USA

The double tax agreement between the two countries was amended in 2004 to include new provisions for pensions, dividends, alimony and branches. According to them, taxes on dividends transferred to a resident of Holland by a company in the US can be levied in the Netherlands. The rates for taxation of dividends are as follows:

Dutch and US branch offices are taxed by the country of registration of their permanent establishment. As regards annuities, alimony and pensions, persons with such income are liable for income tax only in their country of residence.

Free advice for corporate taxes

If you are looking for advice for your corporate taxes, look no further. We provide an initial free consultation for all starting entrepreneurs in the Netherlands.

ICS has been inspired by the work of The Kansas tax aide organisation. Kansastaxaide made an initiative to help individuals that do not have the means to make a proper account filing.

If taxes are filed wrongly, persons may be fined or even criminally liable. To prevent a too high administrative burdon, Kansas tax aide helped lower and middle income Kansans with the nationwide AARP-tax-aide program.

The AARP Foundation tax aide program is ideal for bringing finacially literate retired individuals, such as former tax accountants, lawyers, bookkeepers, government workers and entrepreneurs, together with people in need. Such as, single mothers who are in need for state funding to finance the education of their children.

We at Intercompany Solutions share the AARP philosophy and feel everyone, whatever the budget, has the right to a tax consultation. Even if we cannot assist with the matter at hand, we will be happy to introduce you to the right party for your specific question.

We are experienced tax experts from the Netherlands, with a specialization in all entrepreneurial matters. From corporate income tax, to Value Added tax to private tax filings of entrepreneurs. If you have a question, don't hesitate to contact us.

We firmly believe that bringing prosperity to others, will eventually bring prosperity to us.

Contact us

If you need comprehensive information regarding the amendments to the treaty for avoidance of double taxation with the US, do not hesitate to contact our Dutch agents specializing in company formation.

Guidelines for US Entrepreneurs: How to Start a Netherlands Company

Holding companies are among the most advantageous business entities in the Netherlands due to the beneficial tax regime they are under. Furthermore, Dutch holdings are globally recognized for the conveniences they offer to both foreign and local shareholders.

Investors should keep in mind that holdings are established in order to gather diverse assets of separate companies under a common umbrella. Our Dutch specialists in company formation are ready to assist international entrepreneurs planning to incorporate local holding companies.

Corporate tax and the 'participation exemption' applicable to holding companies

Dutch holding companies are taxed in the same way as other corporate entities in Holland. They need to pay 19% corporate tax on profits up to EUR 200.000 and 25.8% above this margin (2024).

The so-called “participation exemption” is among the advantages of Dutch holding companies, as it provides for full tax exemption on capital gains and dividend payments. Shareholders of Dutch holding companies are eligible for this exemption if they hold no less than 5% of the capital and meet one or more of the requirements below:

Our Dutch specialists can provide you with more details regarding the requirements to qualify for a participation exemption. Read more on the Dutch participation exemption.

Other tax benefits relevant for Dutch holding companies

Dutch holdings offer a number of advantages with regard to taxation. They include:

The Dutch tax regime with respect to holding companies is among the most advantageous in Europe. This is why the Netherlands is an attractive destination for international investors planning to set up holdings. If you need assistance in establishing a holding and further information regarding its taxation, do not hesitate to contact our Dutch consultants specializing in company registration.

Establish a holding company in the Netherlands

Selling services or products online requires more than just creating a website. First of all, you have to register a company at the Trade Registry of the Dutch Commercial Chamber (KvK) and choose a name for your domain, then keep financial records and make payments for income and value-added tax (BTW). Starting an online shop in the Netherlands involves compliance with different regulations and rules, including particular requirements for selling online. The present guide will help you figure out what your obligations are. For more information and legal assistance, contact our incorporation agents.

Tip: For foreign entrepreneurs and non residents, a Dutch BV company is a more logical choice. 

Is your online shop considered a real business?

Up to a certain point, an online shop may be just a hobby, but when does it become a real business? The Commercial Chamber at the Customs and Tax Administration has set the following seven criteria:

  1. independence;
  2. profitability;
  3. capital;
  4. company size (in money and time);
  5. entrepreneurial risk;
  6. customers;
  7. liability.

Registration at the Dutch Trade Registry and Tax Administration

All new businesses have to be registered at the Dutch Trade Registry. If your entity is a cooperative or a sole proprietorship, you will be issued a value-added tax number and your details will be passed to the National Customs and Tax Administration, so you do not have to go through a separate registration procedure with them. Associations and companies with limited liability need to be registered separately. For more information, please, refer to the articles on legal business forms.

Register the name of your domain (address on the Internet)

To purchase and register a domain, you need to reserve its name at a registrar. The name should be unique, chosen with respect for other companies’ trade names, trademarks and copyrights. The registrar shall forward your request to the institution administering domain names.

In case you have hired a designer to create your online shop, you will be allowed to modify it yourself only if you own the copyright. It is best if the designer agrees to waive his/her rights. Another option is to obtain a licence regarding the online shop use.

Third party E-commerce stores

Perhaps you will want to use third party E-Commerce portals such as Amazon Netherlands, Bol.com (biggest online retailer in the Netherlands), Ebay (Marktplaats in The Netherlands) or Shopify. For Bol.com and Amazon we have a more thorough guide on how to get started.

Applicable taxes

If your online shop is generating income, the authorities will probably consider you an entrepreneur liable for income tax. In this case, your profit from the business will be taxed. You have to pay value-added tax (BTW) for most services and products. In Holland, there are three different value-added tax rates. Some services and goods can be exempted from VAT. The VAT is charged to the customers and transferred to the office of the tax authorities. If your turnover exceeds a certain amount in another member state (MS) of the EU, you need to charge value-added tax using the rate of the respective state. You are liable for VAT in that MS too, so you must also register your business there. Thresholds for remote sales differ depending on the country.

Entrepreneurs must keep records of their business transactions. The same rules apply to online shops. The records must meet certain requirements. For example, you need to keep the records in your archive for a minimum of 7 years. You also have to record the hours that you spend working for the online shop, if you want to receive an entrepreneur allowance.

Provide straightforward information online

Your website needs to state clearly the identity of your company. You have to include your address, number in the commercial registry and VAT number. Also, you need to inform the customers of the features and prices of the products you offer, the preferred payment method, the ordering process, the warranty, the period for product return and the terms of delivery.

Make sure that the personal details of your customers are safe

Ask permission before placing cookies on your customers’ computers

Cookies are small files that save browser settings on the PCs of your customers. They allow you to follow your clients’ surfing patterns and introduce targeted adverts. You can use cookies only with your customers’ permission.

Handle your customers’ details with proper care. Personal data need to be protected from theft, loss and such. Ask your hosting provider about the available options for security. Provide secure payment methods to your customers. Secure payments require a secure connection to the internet, starting with “https” in the URL field of your browser.

Written order confirmations

You have to send order confirmations in a written form, including your general conditions, warranty conditions and contact details. Customers need to receive this info at the time of product delivery or service provision, at the latest.

Rules for advertising by email

You cannot make cell phone calls or send emails to companies or people for the purposes of advertisement if they have not given you their permission.

Rules for selling alcohol and tobacco

High-alcohol drinks can be sold online only with a permit or license, as stipulated in the Catering and Licensing Act. Low-alcohol drinks can be sold without a licence.

Holland permits online sales of tobacco. You can provide overviews of the tobacco products you offer (including logos) and list prices on the website. You cannot, however, recommend specific products.

Prepare your General Terms & Conditions (GTC)

It is advisable to have GTC in order to minimise risks and ensure transparency of your business operations. GTC include details about payment, periods for delivery, warranty and settlement of disputes.

Requirements for product safety, labelling and packaging

Final goods have to be safe for the customers. Therefore the products offered in your online shop need to meet certain requirements. See which rules are applicable to your business. Product labelling and packaging is also regulated. For example, in case of export, your label needs to include the official language at the destination.

If you plan to start an online shop in Holland, do not hesitate to contact our specialists. They can assist you in registering your Dutch business. They will give you more details on company registration and consult you on the relevant legal matters.

The open economy in the Netherlands welcomes international entrepreneurs. The Dutch market is constantly growing and offers plenty of trade opportunities in all economic sectors.

Why invest in the Netherlands

Although small, the Netherlands is a wealthy country and its business climate allows companies to check the feasibility of their products before exporting them worldwide. Most Dutch people speak English well and welcome new products and ideas. This is why Holland is often perceived as a gateway to the European continent.

In Holland, the government supports the development of innovative products by offering companies different grants, tax benefits and innovation credits. The European Union also has several innovation-related grant schemes.

The government works closely with universities, research centres and the private sector, establishing top consortia for innovation and knowledge. This alliance works to place innovative services and products on the national market. The Ministry of Economic Affairs and Climate Policy also provides an incentive for entrepreneurs who wish to investments in research.

The Netherlands Foreign Investment agency has released a report on foreign investment in the Netherlands over 2017, and 2018.

Investment opportunities by sector

Agriculture and food

This is a thriving Dutch sector that includes both manufacturing and farming.

Read here on the Dutch agriculture and food sector.

Haulage / Logistics

The sectors of export and import are major for the Dutch economy. The businesses involved in international trade require logistic support and present various possibilities.

Read here on the Dutch logistics sector.

Innovative high-technology products

Holland is famous for its innovative inventions, e.g. Wi-fi, Bluetooth and Compact Discs. The Dutch government offers financial support to innovative enterprises. It also assists businesses to quickly place their innovative services and products on the market.

Read here on the Dutch high tech industry.

Propagation materials and horticulture

The sector of horticulture is leading on the global market of plants, bulbs, reproductive material and flowers.

Read here on the Dutch horticulture industry.

Health and life science

Holland has excellent infrastructure to facilitate clinical research, measures for tax support, strategic location and good business climate. It provides companies working in the field of life science with a gateway to the market of Europe. The environment of the sector is great for business acceleration and expansion.

Read here on the Dutch life sciences and health sector.

Chemicals, gas and petroleum products

The Dutch chemical sector brings huge profits. The port of Rotterdam, the country’s developed infrastructure, the local knowledge institutions and the qualified labour force offer outstanding opportunities to international businesses.

Read here on the Dutch chemical industry.

The creative industry

The creative industries in Holland are internationally recognized and have a particularly good reputation with respect to architecture, interior design, fashion and gaming.

Read here on the Dutch creative industries.

The life expectancy in the Netherlands is approximately 81 years. Studies also show that the country has the happiest children and the tallest population worldwide. The national healthcare system established 150 years ago is easily accessible and recognized all over the world. With good collaboration between the industries and scientific institutions, dedicated clusters and robust links between research, business creation and production, the national sector of Health and Life Sciences maintains its competitiveness in the world industry.

If you would like to establish a company in the Life Sciences and Health sector, please do not hesitate to contact our incorporation agents. They will be happy to give you more information and legal consultancy.

Combined solutions from scientific research to patients

The characteristic Dutch approach to creativity and collaboration and the readiness for cooperation in the name of greater goals has led the Netherlands to its top ranking in open innovation and private-public research. The success of the sector of Life Sciences and Health stems from the close collaboration and sharing of knowledge between research institutions and companies with full governmental support. This model linking research, innovation, knowledge and production generates affordable, sustainable and robust solutions to set global standards. The Dutch multidisciplinary approach yields superior expertise and knowledge in the area of healthcare, linking science to patients, and frequently leads to the adoption of comprehensive, combined solutions. The innovative services and products in fields like medical equipment and remote care, and the collaboration of Medtech and Pharma in the area of diagnostics provide solutions for many contemporary health care challenges faced worldwide.

Five advantages of the sector of Health and Life Sciences in the Netherlands

Impressive historical contributions

Holland has made remarkable contributions to medical science:

Cooperation, collaboration and building of coalitions

Holland maintains its position as a key global player in Health and Life Sciences with significant technological achievements in the fields of health infrastructure and medical technology, biomaterials (coatings for medical equipment), regenerative medicine, veterinary and human vaccines, biopharmaceuticals, medical informatics and molecular imaging. The success of the sector lays in the cooperation, collaboration and building of coalitions between research institutions, universities, businesses and the government that link research to business creation and production.

Turnkey projects

The Dutch expertise in the infrastructure of healthcare is represented by turnkey projects: local companies have the ability to simultaneously cover the aspects of medical equipment, waste management, design, engineering, financing, etc., with special attention to “healing environments” and energy efficiency.

Health and Life Sciences is among the leading industries in the national economy and is given first priority by the Ministry of Economy. The sector achieves its success by uniting partners and joining forces along the (value) chain of prevention, cure and care.

The Dutch programme in the field of genomics

The Netherlands has a national programme for genomics and three substantial private-public programmes connected to Regenerative Medicine, Pharmacotherapy and Translational and Molecular Medicine worth over a billion Euros. Within the framework of these programmes large industrial partners and small/medium enterprises cooperate with the 8 medical faculties (the faculties of medical technology of the 3 Technical Universities and the university hospitals) on projects for research and development with direct contributions to clinical practice. The programmes finished in 2012/2013, but their initiatives are still progressing.

Quality, accessibility and affordability of healthcare

The national health care services offer quality, accessibility and affordability for all. Many countries use Holland to illustrate how health care quality can be provided with the maintenance of a reasonable cost level. As regards future perspectives, Holland is directing its efforts towards eHealth (online prevention and therapy, telemedicine).

Historically, The Netherlands has been known as a European trade centre and as the maritime link between the Old Continent and North and South America, Asia, and Africa. In order to maintain its status, the country has been working to achieve an even better, friendlier business climate and attract international investors. The efforts are paying off, as currently Holland is the EU base of 2100+ companies from North America, and counting. Why is Holland such an attractive country for doing business? The reasons are many and one of them is the tax system, offering various incentives.

The 10 advantages of the Dutch tax system:

  1. The law in the Netherlands provides reductions of the withholding tax on dividends, royalties and interests paid to local companies and excludes from taxation the majority of capital gains obtained from share sales in source jurisdictions.
  2. Holland’s investment treaty network is among the most extensive in the world. It includes 96 jurisdictions and Dutch limited liability companies have access to it. The network protects investors from expropriation and guarantees that they will be treated in the same way as domestic or third country investors. In any corporate structure, a Dutch entity can provide protection from foreign government interventions through clauses for settlement of disputes that allow international arbitration using the Dutch judicial system.
  3. EU Directives provide a reduction of withholding tax on transactions between related firms.
  4. Full tax exemption for income coming from foreign subsidiaries that meet the regulatory requirements. The so-called participation exemption allows tax waiver for eligible capital gains and dividends if a local holding owns at least five percent interest and meets one of two requirements:
    a) The subsidiary’s consolidated assets include <50 percent low-taxed passive investments.
    b) By making investments in the respective subsidiary, the company aims to get a return, greater than the anticipated from the regular management of assets.
    The subsidiary has to pay realistic taxes in accordance with Dutch standards (no less than 10 percent). The law also provides a tax exemption for income, coming from international permanent offices of Dutch companies and tax-effective profit repatriation.
  5. Special tax regime for innovation where profits from qualifying intangible assets are taxed at a rate of 5 percent.
  6. IP arrangements and financing (inclusive of hybrid debt) without retentions on royalty payments, interest and services, even if paid to a tax haven.
  7. Support for Dutch holdings establishing businesses on the territory of the EU.
  8. Deferred taxes for corporate restructuring.
  9. Option to establish a consolidated group/fiscal unity (if particular requirements are met for direct subsidiaries of companies incorporated in the Netherlands) allowing consolidated taxation.
  10. Possibility to defer taxes on gains from conversion or sale of intangible or tangible business assets, excluding passive investments.

Are you looking for tax advantages and exclusive benefits with respect to tax planning? The Dutch entities have plenty to offer. Furthermore, Holland is becoming an attractive jurisdiction for holdings. Learn about the opportunities the country offers by contacting our specialists in incorporation.

Dedicated to support entrepreneurs with starting and growing business in the Netherlands.

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