The Dutch business climate and culture
The Netherlands is an excellent place to do business. It has an international focus, excellent physical and digital infrastructure, and a well-educated and often multi-lingual workforce. As well as an attractive business climate, the Netherlands offers a good quality of life. Read more about doing business in the Netherlands.
Why start a business in the Netherlands?
The Netherlands is a popular choice for an ever-growing number of foreign businesses, including multi-nationals. The Netherlands’ strategic location at the heart of Europe makes it ideal for businesses that want to expand their activities across the continent. It has one of the world’s most open economies. The Institute for Management Development’s World Competitiveness Ranking 2023 placed the Netherlands as the 5th most competitive economy in the world. And 5 of the top 10 ten regions in the EU Regional Competitiveness Index are in the Netherlands. The Index ranks regions according to how attractive and sustainable they are for both companies and residents to live and work. Innovation is also thriving. In 2023, the World Intellectual Property Organization (WIPO) ranked the Netherlands as the world’s 7th most innovative economy.
Benefits of doing business in the Netherlands
The Netherlands has a favourable corporate income tax rate compared to the rest of Europe. In 2024, the rate is 19% to € 200,000 and 28.5% on taxable profits above that. There are also tax schemes available to stimulate business growth, innovation, and sustainability. These include incentives for both entrepreneurs and SMEs and for large companies. There are many highly educated foreign workers in the Netherlands and the highly skilled migrant visa means companies have a clear path to recruit international talent, also from outside the EU.
Startup infrastructure
The Dutch residence permit for foreign startups makes it easier for innovative foreign entrepreneurs to start a business in the Netherlands. There are also several mentoring and coaching organisations and programmes that provide guidance, advice, or funding to startups. Some of these operate on a national level, like Techleap.nl, others act regionally.
Key sectors
The Dutch government also invests in 9 key sectors. These are focus areas for business such as High Tech, Life Sciences and Health, Agriculture and Food, and the Chemical Industry. If your company is active in one of these areas, the Netherlands could be the place for you. If your foreign company is considering moving to the Netherlands, the Netherlands Foreign Investment Agency (NFIA) can help you in many ways.
Quality of life
As well as being a good place to do business, the Netherlands offers a good quality of life, ranking at number 5 in the UN World Happiness Report 2023. The Dutch standard of living is high. The OECD’s Better Life Index measures well-being in different countries based on material living conditions and quality of life. The Netherlands scores highly in the areas of work, life satisfaction, work-life balance, and civic engagement.
Dutch business climate and culture
The Dutch business climate is progressive. Reliability and honesty are both highly valued in the workplace. For example, being late at an appointment is considered unacceptable. The Dutch like to get things done; so structure and planning are often an important element within the business strategy. Dutch society is relatively egalitarian and accepting of difference. This is reflected in the horizontal hierarchy and informal workplace culture found in most companies. Dutch employees are often expected to work independently.
Formalities
Communication between colleagues is often informal. Men and women are generally treated equally. The Dutch style of communication is very direct with people often quick to express their opinions. This can come across as rude to some foreigners. When it comes to introducing yourself to others, the most common way of greeting is a handshake. It is also considered normal to knock on the door before entering an occupied space. Depending on your job title and the occasion, dress codes usually range from business casual to formal.
More information
Learn more about the Dutch culture and business climate by watching our webinar Dutch business climate and culture. Together with a foreign entrepreneur and a startup expert, we discuss which cultural matters are important to take into account when doing business in the Netherlands. You can also visit our page about Dutch life and personal matters for basic information about living in the Netherlands.
Other resources
- To find out more about the ways in which the Netherlands contributes to global developments in sustainable and inclusive entrepreneurship, check out the NL Platform pages.
- Dutch scientific and tech sectors are thriving, there is a collaborative culture, and companies make special efforts to support international employees. If this appeals to you, visit Welcome to NL. This platform offers information on everything from employment to family life.
- Government.nl offers a checklist to make sure you do not forget to arrange any personal matters when moving to the Netherlands.
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK