Startups are inclined to and benefit from doing business in the Netherlands. Did you know that The Netherlands ranks as the No. 4 best European country for startups, while Amsterdam is Europe’s fastest-growing startup ecosystem? Bolder Launch can assist you to start your startup business in the Netherlands.
There are several reasons why the Netherlands is popular among startups. Bicycles, equal rights, electronic music, cheese, windmills, pancakes, rain, Heineken and cannabis are just a few of the numerous things the Netherlands is known for. Although it’s a wonderful area to live in, only a few people are aware that it also serves as a well-known startup cluster. There are many accelerators, incubators and co-working spaces, all of which provide both local and foreign companies with a friendly living and working environment.
In this article, we will try to explain to you what makes this small country a desirable location for international companies, business owners and talented workers.
Why are Businesses and Startups Attracted to the Netherlands?
The Netherlands consistently achieves top rankings on numerous global indices, including those measuring the fastest internet speeds, quality of life, safety and general happiness. Adding to the fact that it’s a pleasant area to live in, there are a few more reasons that could explain why international IT startups and businesses are drawn to the Netherlands. As a result, it now holds the top spot in the European Union for the ease of starting a business.
Global, Diverse Population
The Netherlands is a free, forward-thinking country with a multicultural workforce that encourages innovation and creativity. In Dutch society, one in five people has parents who were born overseas. Amsterdam honours and respects its citizens, who currently represent 180 different nationalities.
English is spoken by 90% of Dutch people, many of whom are multilingual.
Startup Visa for the Netherlands
For non-EU/EEA nationals who desire to launch a business in the Netherlands, the government established the Netherlands Startup Visa. It offers aspiring business owners a year to establish their venture with the opportunity of an additional year. Additionally, another initiative that could help startups is the Ambitious Entrepreneurship Action Plan.
For highly talented immigrants from outside the EU, an expedited immigration procedure is advantageous to both employees and companies.
Interesting tax climate
The standard corporate tax rates in the Netherlands are relatively low, which is around 15% on your first 400,000 EUR in profits. This is about 10% lower than in France, Belgium or Germany.
The Dutch government also provides competitive tax breaks, reimbursements and allowances in addition to offering a level of predictability and transparency that businesses can depend on over the long term. For R&D and innovation (the so-called Innovation Box), benefits include an effective corporate tax rate as low as 5%.
Facilities & Connectivity
Anyone who has done business internationally is aware that developing nations’ low labour and operating expenses frequently come with trade-offs, particularly when it comes to a stable infrastructure. The Netherlands, on the other hand, is renowned for its superior communications and transportation systems, which accelerate and simplify commercial operations. In addition to being the origin of Bluetooth and Wi-Fi, the nation offers some of the fastest broadband speeds in all of Europe.
Internet usage is 95.5% of the population in the Netherlands. The nation excels in all the metrics needed from a policy perspective to enhance and develop entrepreneurial ecosystems, according to the European Digital Startup scale.
Robust economy & stable political environment
The Netherlands being one of the top 5 most competitive economies in the work speaks for itself.
A functional, democratic and law-abiding society like the Netherlands fosters a safe environment for conducting business. The Dutch are renowned for seeking agreement on significant problems and for providing their residents with strong social services, which increases security.
The Netherlands is ideally situated for travel anywhere in Europe and the world because it is situated between Germany, Belgium and the North Sea. The biggest port in the world is located in Rotterdam.
What Percentage of Startups Exist in Holland?
The website Angel.co reports that Holland houses 3,325 firms, 3,098 investors, and 818 open positions with an average valuation of $3.6M and an average salary of $66k.
To compare, France has 5,826 enterprises, 3,149 investors, 1,428 employments and an average valuation of $3.3M.
What about raising funds?
Due to the Netherlands’ modest size, raising enough funding has historically been difficult. The two main methods of raising money are either crowdfunding or approaching individual investors since the possibilities are rather limited.
Although this can be harmful to a startup economy, there were many options available for business owners and independent creators all over the world to raise seed money starting in 2018 onwards. Overall, Holland is still a fantastic location for startup businesses to establish themselves before moving to growth centres like London for the next phase of their growth plan.
Notably, businesses on the other end of the range, like Google, Uber and Amazon, find the Netherlands to be appealing. With Brexit, the country’s appeal to businesses of all sizes wishing to relocate from the UK has increased even more.
The majority of venture capital funding in Europe still goes to Paris and London, but businesses, entrepreneurs and digital nomads looking for a place to call home are drawn to the Netherlands. This can be attributed to the country’s business-friendly tax policies, English-speaking population, startup initiatives and high quality of life.
Emerging economies like China and India are well-aware and looking to possible opportunities in Holland, with hundreds of businesses recently opening offices in the region.
Start your business in the Netherlands with Bolder Launch.