Setting Up Your Business in the Netherlands: GEOS Guide for Global Expansion

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

---

When it comes to starting a business in the Netherlands, timing is on your side. While the rest of Europe is slowing down, the Netherlands is speeding up. This year so far, Dutch startups have raised €3.1 billion in venture funding, a 47% jump from the year before.

While overall investment in European startups has dropped by 5%, the Netherlands has climbed to become Europe’s fourth-largest startup hub, just behind the UK, Germany, and France. This is a sign the market is ready for more.

A lot of that momentum comes from deep tech. AI, quantum, and semiconductors now make up 35% of Dutch startups. Amsterdam’s Science Park was just chosen as the EU’s next quantum computing site, a clear signal that the country is ready for the future.

If you’re looking for a launchpad into Europe, the Netherlands is a strong bet. In this guide, we’ll break down how GEOS makes expansion into the Dutch market simple, fast, and fully compliant.

Why Should You Expand to the Netherlands?

There are a number of reasons for starting a business in the Netherlands. Everything from tax incentives, including tax exemptions, to the innovative business climate to foreign direct investments make it a smart move. Business operations are smooth thanks to strong infrastructure, English-speaking talent, and supportive government policies that welcome international companies.

Strategic Gateway to Europe

The Netherlands is still one of the best places to enter the European market. It holds a GEOS Global Subsidiary Index Score of 70.8, backed by strong infrastructure, great connectivity, and a healthy economy.

After a slow 2023, the economy is bouncing back. Real GDP growth should reach 1.6% in 2025. Inflation has eased. Wages are rising by over 6%. People are ready to spend again, which helps private consumption grow. The government deficit will widen to 1.9% in 2025, but investment is picking up as financial conditions improve. The Netherlands checks a lot of boxes:

• GDP per capita score of 9/10, showing strong consumer spending power.
• Communications infrastructure score of 5/5, with some of the best digital networks in Europe.
• Industry diversity score of 4/5, with major sectors like tech, finance, logistics, life sciences, agriculture, and renewables.

Digital strength is a big part of the story. The Dutch Digitalisation Strategy and Connectivity Action Plan keep the Netherlands ahead of Gigabit Society targets. High-speed, reliable internet is everywhere — and it’s affordable. That’s a huge win for tech, e-commerce, and logistics businesses. Physical infrastructure is just as strong.

• The Port of Rotterdam is still Europe’s biggest and busiest port.
• Amsterdam Airport Schiphol connects businesses to global markets fast.

Both make the Netherlands one of the best places in the world for logistics and distribution. In short, the Netherlands in 2025 gives companies:

• A stable economy
• Top-tier digital and transport infrastructure
• Access to a wide range of industries

If you’re interested in starting a business in Europe, you won’t find many better options. The business climate is ready.

Competitive Tax & Business Incentives

The Netherlands offers a solid mix of fair tax rates and targeted incentives. It supports both established companies and startups, especially those focused on innovation, and having a solid business plan is crucial.

The standard corporate income tax rate is 25.8%. A lower rate of 19% applies to the first €200,000 of taxable income. This standard rate structure makes the system more accessible for small and mid-sized businesses. The Corporate Tax Rate Score is 7/10, reflecting a favorable but not ultra-low corporate income tax rate.

Key incentives for business in the Netherlands include:

• The innovation box lowers the effective tax rate to 9% for profits tied to self-developed R&D projects.
• The tonnage tax regime lets shipping businesses calculate tax based on vessel size rather than actual profit.
• Special tax treatment for investment funds, though rules for real estate have tightened in 2025.
• Exemptions for capital gains from foreign subsidiaries under certain tax regulations make the Netherlands an attractive destination for foreign investors.

Employers also deal with predictable but moderate costs. The Employer Payroll Cost Score is 3/5. On average, employers pay around 30% more than gross wages. That includes things like holiday earnings, insurance, pensions, and equipment. Some of these costs are optional. Others, like social security contributions, are mandatory.

The work-related costs scheme (WKR) helps reduce costs. It lets employers offer certain advantages, ike phones, public transit cards, or gym memberships, without extra tax.

VAT is well-structured but requires attention. The VAT Complexity Score is 4/5. Rates range from 0% to 21%, depending on the product or service. Most businesses file quarterly. The system is digital, and deadlines matter. Businesses must track input and output VAT carefully to avoid penalties.

In summary:

• Lower tax rates support SMEs and innovators.
• Rules are clear, but costs can add up.
• VAT is manageable, but only with proper reporting.

The Dutch system rewards businesses in the Netherlands that invest in R&D and stay organized. If you plan ahead, the advantages can add up.

Skilled Workforce & Favorable Hiring Regulations

The Netherlands has one of the most talented workforces in Europe. It scores high across the board, 5/5 for IT, marketing, and finance, and 4/5 for sales and engineering. Dutch professionals bring strong digital skills, global experience, and a high level of English.

The education system plays a big role. Dutch universities consistently rank among the best. TU Delft, Wageningen University, and Design Academy Eindhoven all place in the global top 10 in their fields. Students graduate with real-world skills and are ready to contribute.

What makes the talent pool stand out:

• The Dutch, with Finland, lead Europe in digital skills.
• They also rank #1 in the world for English proficiency.
• The workforce is diverse, inclusive, and globally minded.
• Businesses can tap into the broader EU talent pool with ease.

Hiring is straightforward, but the laws favor employees. The employment law complexity score is 7/10. That means clear rules, especially around contracts, dismissals, and benefits. Employers need to follow procedures and document decisions carefully.

Unions are part of the picture, too. The union complexity score is 3/5. Many sectors work under collective labor agreements (CAOs). These cover things like working hours, wages, and notice periods. Once you’re familiar with them, they’re easy to manage.

Key hiring facts:

• The standard full-time workweek is 36–40 hours.
• Employees get at least four weeks of paid vacation.
• Holiday allowance is 8% of annual salary, often paid in May.
• Overtime rules depend on individual or collective agreements.

You’ll also need to consider social security, healthcare, and workplace safety. Employers must contribute to and follow health and safety laws and ensure that their employees meet requirements such as obtaining a residence permit. Dutch offices, whether on-site or remote, must meet clear standards. Keep this in mind if you’re starting a business in the Netherlands.

How to Set Up a Business in the Netherlands

When you start a business in the Netherlands, you need to choose a legal structure. Your decision affects taxes, liability, and the level of admin involved, including the documents required.

Private Limited Company (BV – Besloten Vennootschap)

A BV is the most popular structure for international businesses. It’s a company with legal personality. That means the company, not you, is responsible for its debts. As a director, you’re officially an employee of the BV and act on its behalf.

It is crucial to separate personal assets from business liabilities when setting up a BV to protect yourself from risks associated with business debts.

A BV offers limited liability and is treated as a separate legal entity. It’s subject to corporate income tax on its profits. As a director, you’re also taxed personally on your salary and any dividends you receive.

This setup makes sense if your profits are over €150,000. It comes with more admin, must be set up through a notary, and has ongoing requirements for accounting and salary.

NV – Naamloze Vennootschap

An NV is usually used by larger businesses with several directors or companies planning to raise capital from shareholders. The company’s capital is divided into shares, which can be traded or held by investors.

Establishing a holding company in the Netherlands can be highly beneficial due to its favorable tax environment and extensive double-tax treaties. The participation exemption regime offers tax advantages for dividends and capital gains from foreign subsidiaries, making the Netherlands an appealing choice for foreign entrepreneurs looking to expand their business.

Like a BV, an NV offers limited liability. But it faces stricter rules, especially around governance and reporting. It’s a better fit for firms looking to grow at scale or go public in the future.

Branch Office

This option lets foreign companies operate in the Netherlands without creating a new legal entity. It’s fast to set up and good for testing the market. However, the parent company remains responsible for all debts and legal obligations.

Sole Proprietorship (Eenmanszaak)

This option for starting a business in the Netherlands works for solo entrepreneurs. It’s easy and low-cost to start. You pay income tax on your profits and might qualify for tax deductions. But you carry full personal liability for any business debts.

General Partnership (VOF)

A VOF is a structure for businesses with two or more partners. It’s simple to form and doesn’t require startup capital. But all partners are personally liable. If one partner makes a mistake, the others may also be held accountable.

A few things to note about starting business in the Netherlands :

• Both private and public limited companies (BV and NV) require a notary and have more legal obligations.
• Sole proprietorships and partnerships are cheaper to run but come with personal liability.
• Branch offices don’t protect the parent company from legal or financial issues.
• If your business stays inactive for more than six months, you may need to deregister or close it.

Choose a BV if you want limited liability and plan to grow. Go with an NV if you’re building a larger company or seeking investors. A sole proprietorship or a branch is best for something quick and simple. A VOF works for partnerships but brings more personal risk.

Incorporation & Compliance Essentials

Starting a business in the Netherlands usually takes 2 to 3 months. You must register with the Dutch Chamber of Commerce (KVK) and work with a public notary. Notary appointments can slow things down, especially if paperwork needs a second look. Partnering with a company like GEOS helps. They work with notaries who know how to handle international businesses.

When you register with KVK, they automatically pass your details to the Dutch Tax Administration. You don’t need to register separately unless you’re setting up as a non-resident business.

Before you register, make sure you have:

• A Dutch business address.
• A trade name that follows the rules.
• A legal structure like a Dutch BV or office.
• A citizen service number (BSN).
• UBO registration if needed.

For compliance and operational management, it is essential to provide the shareholders and directors with personal information and relevant incorporation documents during registration.

If you’re setting up a Dutch BV or another legal entity, a notary must complete the process. You’ll also get an RSIN number and an SBI code based on what your business does.

The steps are simple. Fill out the KVK form online. Book an appointment. Bring your ID and proof of your business address. Pay the fee using a QR code. No cash allowed.

The paperwork is pretty streamlined (Original Paperwork Score: 4/5). You’ll still need some notarized documents, but the process is clear.

If you want access to Dutch tax benefits, you need to show actual activity, like having a physical office and actually running the business. The Netherlands has an Economic Substance Score of 3 out of 5, which means you’ll still need to prove you’re genuinely operating there to qualify.

A few important reminders for starting a business in the Netherlands:

• Update your KVK record if anything changes.
• Meet your tax and legal duties until you fully dissolve the company.
• If you skip registration, you risk fines or legal trouble.

Registering Your Business

Registering a new business in the Netherlands involves several steps, including choosing a company name, registering with the Dutch Chamber of Commerce, and obtaining a residence permit. Foreign entrepreneurs can register a private limited company (BV) or a public limited company (NV), both of which offer limited liability protection and tax benefits.

To register a business, entrepreneurs must provide incorporation documents, including a deed of incorporation, articles of association, and a registration application. The registration process typically takes several weeks, and entrepreneurs must also obtain a bank account and register with the tax administration.

Choosing a company name is the first step in the registration process. The name must be unique and comply with Dutch naming regulations. Once the name is chosen, the next step is to register the business with the Dutch Chamber of Commerce (KVK). This involves submitting the necessary incorporation documents, which include the deed of incorporation and articles of association. These documents must be notarized by a Dutch notary.

After registering with the KVK, entrepreneurs must open a business bank account. This requires providing proof of registration and a Dutch business address. The final step is to register with the Dutch tax administration to obtain a tax identification number. This ensures compliance with Dutch tax laws and allows the business to benefit from available tax incentives.

Financial & Banking Considerations

The Netherlands has one of the strongest financial systems in Europe. Amsterdam is a major international finance hub, offering world-class banking and capital markets, making it easy to open a business bank account. The country scores a 5/5 for financial infrastructure.

Opening a business bank account is usually smooth after you register your company. Most banks expect proof of a Dutch address and KVK registration. Some may also ask for a director to visit in person, though remote onboarding is sometimes possible.

Key points to know:

• Major banks include ABN AMRO, ING, and Rabobank.
• Local banks are experienced in working with international businesses.
• Financial services like loans, insurance, and digital banking are widely available.

Dutch financial rules are clear but detailed. Companies must meet strict tax and accounting standards. The Tax & Accounting Complexity Score is 7/10. You’ll need to follow either Dutch GAAP or IFRS for financial reporting.

Important accounting facts:

• Dutch GAAP is more rules-driven. IFRS is more flexible.
• Companies must file annual financial statements with the KVK.
• Medium and large companies need a formal audit.

Compliance is serious. Businesses must file regular VAT returns, corporate reports, and sometimes social security declarations. Missing deadlines can lead to fines.

To qualify for advantages, companies must show economic substance. That usually means having a real office, active operations, and sometimes Dutch employees.

Industry-Specific Requirements

Different industries in the Netherlands have specific requirements and regulations that must be complied with to attract clients. For example, companies in the food industry must comply with strict hygiene and safety regulations, while companies in the financial sector must comply with regulations related to money laundering and financial reporting.

Foreign investors must research the specific requirements for their industry and ensure that they comply with all relevant regulations. Additionally, companies may need to obtain permits and licenses to operate in certain industries, such as healthcare or education.

For businesses in the food industry, compliance with hygiene and safety standards is crucial. This includes obtaining certifications and adhering to regulations set by the Dutch Food and Consumer Product Safety Authority (NVWA).

Similarly, companies in the financial sector must comply with regulations from the Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) to prevent money laundering and ensure transparent financial reporting.

The healthcare and education sectors also have stringent requirements. Companies must obtain specific permits and licenses to operate, ensuring they meet the standards set by relevant regulatory bodies. Conducting thorough research and consulting with industry experts can help foreign investors navigate these regulations and ensure compliance.

Things To Consider When Expanding into the Netherlands

The Netherlands makes it easy to hire skilled foreign workers. The process is clear and works well for most businesses and their services. It gets a 4/5 for immigration complexity.

Different regulations apply to starting a business in the Netherlands depending on the origin of the entrepreneur, distinguishing between EU, EEA, Swiss, and non-EU citizens. These varying requirements, such as the need for permits and registration processes, illustrate the complexities entrepreneurs face based on their nationality.

Hiring foreign employees in the Netherlands is manageable once you know the rules. For stays under 90 days, you need a work permit (TWV) from the UWV. For longer stays, apply for a single permit (GVVA) through the IND. This covers both residence and work. Some employees may also need a provisional residence permit (MVV) unless they already hold a valid Schengen visa.

Startups can use a special 4-year pilot program to hire essential foreign talent. You don’t need to be a recognized sponsor, but other conditions apply. Temporary projects may not require a permit if the UWV approves them under the International Trade Regulation.

Cross-border workers from the EEA or Switzerland may also be exempt, as long as their company submits a proper notification.

Some employees don’t need a permit at all, including:

• Highly skilled migrants
• Researchers and Blue Card holders
• Certain family members of foreign workers
• Employees with valid permits from other Schengen countries (in some cases)

The process is strict but clear. As long as you apply under the right category, hiring international talent in the Netherlands is very doable.

Cost of Living & Office Space

Space is an investment, not just an expense. Where you set up in the Netherlands affects more than just rent. It shapes your access to talent, connectivity, and long-term growth.

• Amsterdam offers premium office space at about €40 per square meter. It’s home to over 47,000 engineers and nearly 3,000 startups. Big players like Booking.com and ING anchor the city’s tech scene. The cost of living runs 8% above the European average.
• Rotterdam gives you more space for less. It combines strong universities, international talent, and public-private innovation hubs like RDM Campus. It’s a solid option for businesses looking to grow without overspending.
• Utrecht, Eindhoven, and The Hague offer even more competitive rents. These cities have top universities, active startup ecosystems, and great rail access to Amsterdam and the rest of Europe.

If you need visibility and volume, Amsterdam delivers. But if you want value, flexibility, and room to grow, other Dutch cities are worth a closer look.

Regulatory & Compliance Risks

Doing business in the Netherlands means keeping up with strong regulatory standards set by the government. The country scores a 7/10 for compliance reporting due to strict annual filing rules, mandatory audits for larger companies, and detailed financial disclosures.

Companies must prepare and file financial statements each year. Larger companies also face mandatory audits. Dutch-listed entities have extra reporting requirements under various national and EU regulations. New businesses often find the process time-consuming at first, but it becomes more manageable once systems are in place.

• Annual reporting must meet either Dutch GAAP or IFRS standards, depending on the company’s size and type.
• Audits are required for medium and large entities and must follow strict guidelines.
• Listed companies face additional layers of reporting depending on where their shares or securities are traded.

Data protection also plays a major role. The Netherlands strictly enforces GDPR, and businesses must comply when handling any personal data from European customers.

• GDPR applies not just to Dutch companies but also to any company outside the EU that processes EU customer data.
• The Dutch government enforces GDPR through the Implementation Act (Uitvoeringswet AVG), which closely follows the EU framework but includes a few local rules.
• Businesses must be ready for possible future changes, like updates from the proposed Data Protection Collection Act, which will adjust some definitions and rules.

The government in the Netherlands has clear but demanding compliance expectations. Companies must stay organized with their financial reporting and take data privacy seriously from day one.

Talent Availability & Scaling Considerations

The Netherlands punches above its weight when it comes to talent. The country has a strong international talent pool. Most professionals speak excellent English, which makes hiring and onboarding easy. It scores 5/5 for language, especially in tech and business roles.

You’ll find skilled workers in tech, finance, and marketing. Amsterdam leads in volume, but other cities also offer solid candidates. Salaries are competitive, so plan your budget carefully.

• Salary Benchmarking Score: 6/10: Skilled professionals, especially in Amsterdam, come at a premium.
• Most employees expect a good work-life balance and room to grow.

Hiring is clear and efficient, but scaling takes planning. Notice periods are common. Payroll costs, including insurance and taxes, can add 21.5% on top of gross salary.

Unique Dutch Expansion Insights

Expanding into the Netherlands takes more than setting up a company. To access benefits, you need real economic substance. That means having a local office, Dutch employees, and active operations, ensuring compliance with customs administration. A mailbox alone won’t cut it.

When you aim to establish a business in the Netherlands, proper planning and understanding of the market dynamics are crucial. The Netherlands Foreign Investment Agency (NFIA) is a great starting point to help arrange your expansion. It’s part of the Ministry of Economic Affairs and offers free, independent support. They’ll connect you with local partners and help guide your expansion.

• Substance matters: Tax perks only apply if you have a genuine presence.
• NFIA helps you get started: They offer tools, contacts, and advice.

Cultural fit is just as important. Dutch professionals are famously direct, and they respect clarity over politeness. They value clarity over politeness. If something’s wrong, they’ll tell you—no sugarcoating. There’s even a word for it: bespreekbaarheid—everything should be up for discussion.

The Dutch also favor consensus. The “polder model” is all about working together. Decisions come from group input, not top-down orders.

• Be clear and to the point: Don’t overthink it.
• Collaboration wins: Everyone gets a say, no matter their title.

The Netherlands rewards those who show up, speak up, and build with intent. Come prepared, and you’ll go far.

How GEOS Simplifies Your Expansion into the Netherlands

Expanding into the Netherlands takes work. GEOS makes it easier for anyone looking to establish a new company. They manage setup, compliance, and local requirements so you don’t have to.

Full-service support from day one.

GEOS handles company registration, a local business address, nominee director appointments, and filings. They also help you meet Dutch economic substance rules, which are key if you want tax advantages.

AI support when you need it.

Geovanna, GEOS’s AI assistant, helps you manage the process. She keeps track of filings, deadlines, and local rules. You stay compliant without the guesswork.

Is the Netherlands right for you?

With a GEOS Global Subsidiary Index Score of 70.8, the Netherlands is a stable and strategic place to grow a company in Europe. It offers strong infrastructure, skilled talent, and access to EU markets. To establish a Dutch company, you need to follow specific procedures such as registering your business, securing a local business address, and choosing the appropriate legal form for incorporation.

📩 Reach out to GEOS for a tailored expansion plan.

This article does not constitute legal advice.