The Netherlands is a great place to own a business, raise a family and enjoy life. I am a huge proponent of this mindset. But it’s not just for the beautiful architecture, hundreds of kilometers of canals, healthy lifestyle, emphasis on bicycles transport and culture, but also because of the great benefits for your business.
Last month I posted about my story, my business philosophy and how I came to be a business owner in the Netherlands, and this month I want to talk about why our clients choose the Netherlands for their European quarter.
Due to the ongoing uncertainty in the wake of Brexit, some of our UK clients have decided to move to, or set up a subsidiary in the Netherlands. This move helps to minimize the problems, which may occur such as keeping their good talent to help operations maintain their quality. Many workers have chosen to leave the UK as a result of the Brexit decision, settling in Amsterdam will provide them with additional job security and comfort.
Furthermore, many of their local partners or clients are based in the Europe making it an asset to set up a Dutch company in the Netherlands, providing ease of cooperation and distance from the fury towards the Brexit.
It’s a great place to test your expansion
Our clients are often feeling constrained in their current market and are ready to see whether there is a demand for their products in another market. The Netherlands is a great place to start. According to Statistics Netherlands (CBS), in June 2018, online sales have increased by 19 percent year on year.
As evidenced by the increase in sales, more and more people are doing their shopping online. Due to the growth and market share of eCommerce in the Netherlands, our clients often try to sell their products before they commit fully using their own tailored made Dutch website or the popular ecommerce platform like www.bol.com.
Rotterdam is the biggest port in the European Union countries (“EU”).
Some of our clients are in the export and import business, and having their warehouse in Rotterdam makes their delivery to their customers fast and reliable. Due to its central location, the Netherlands has great access to the EU. Case and point: Rotterdam, located in the southwestern part of the Netherlands, has the biggest trading port in the EU. This trading hub is connected to a number of other large ports in the EU. So your EU-based clients can have goods delivered from your Netherland’s office in as fast as one-to-two days in other nearby EU countries like France and Germany.
VAT deferral – Article 23
Another benefit for our non-EU clients that are in import and export business is the license of Article 23, the VAT Deferment License means that foreign companies who import goods to the Netherlands from outside EU are not required to pay VAT immediately to the Customs provided they have been granted an Article 23 permit by the Belastingdienst (the tax authority).
The permit grants the import of goods with the opportunity for paying or adjusting the VAT on a subsequent tax return. Our clients found this license especially beneficial and valuable because in the interim they can improve their cash flow.
Other clients of ours are based from outside of the EU working in the service sector doing business-to-business (B2B). One of the main reason they set up a company in the Netherlands is to generate more sales leads for them.
When they successfully found some clients in the Netherlands, they started out employing their people from their own countries due to the labor costs being less expensive, and certain skills and expertise are sometimes not widely available in the Netherlands.
Thus, when their businesses become settled, they transfer their employees via the intra-corporate transferee permit (“ICT”) transfer, which allows parent companies to transfer their employees into the Netherland to work, thanks for the new European Intra Corporate transferee directive is now implemented into the Dutch immigration law making the internal transfer between the mother and Dutch subsidiary possible.
The Netherlands is one of the top English-speaking countries
Residents of the Netherlands are very familiar with the English language, in fact, it is the second most frequently spoken language in the country. As it is the second language of the Dutch, you would face little adversity when it comes to communicating with your clients, language-wise.
There are many factors to take into account when you consider expanding your business to a new country, but the laws, population, business systems and stable government make the Netherlands a great place to get your foot in the door with a new populations, expand your business and pick up new consumers for your products. Considering the Netherlands for your next business expansion? Reach out to us at SME Solutions and we’d be happy to discuss your move to the Netherlands in more detail.