Netherlands
Consider the Netherlands your springboard to Europe. As a cog in European transportation, it equips international companies with easy connections to the continent and beyond. Combined with a strong economy — the fifth largest in Europe — this sliver of land delivers value few others can match.
At a Glance
No local back account needed.
No, local representation isnt required.
The standard payroll frequency is Monthly/4-weekly.
No, local registration isn’t required.
The employer taxes are 20-35% of gross salary.
Good to Know
The Dutch workforce is talented and highly skilled with a hard-working mindset. Higher education (bachelor’s and master’s) ranks seventh worldwide, followed by the UK, Australia, and Singapore.
Innovation and growth are fostered at every turn in the Netherlands. The Dutch government works relentlessly to attract foreign investors. The World Economic Forum ranked the Netherlands as the ‘most competitive global economy’ and ‘No. 1 worldwide for macroeconomic stability.’
The Dutch transportation network is like no other. Centrally located with the largest port (Rotterdam), one of the busiest airports in Europe (Schiphol), and well-connected rail networks and waterways, the Netherlands is a natural gateway to the rest of Europe.
*Although a 13th-month salary is not applicable in the Netherlands, employees do receive an 8% vacation allowance paid in May (or distributed monthly).
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Bank Account Set-Up
Opening a bank account with any Dutch bank can be very challenging for companies with foreign shareholders and foreign management. Banks are increasing their compliance requirements or will flat-out refuse to open a bank account.
VAT Complications
Obtaining a VAT number for investors who have created a Dutch legal entity with a foreign shareholder and management can take additional time and work. The Dutch tax authorities are keen to know exactly what a company’s plans are before they issue a VAT number.
Hiring Considerations
When hiring staff or seconding staff to the Netherlands, an employer needs to put in place an employment agreement based on Dutch labor law. Workers' rights are strictly protected in the Netherlands. For instance, an employer is obliged to pay an employee's salary during the first two years of illness (at least 70%).
Next Steps
Are you eyeing the Dutch market? Our expert-led managed services and technical consulting are designed to support you every step of the way. With an unparalleled focus on the customer experience, we enable you to expand with ease.
When you partner with us, you gain immediate access to GateWay, our global expansion management (GXM) system. This pioneering platform allows you to effortlessly and compliantly manage your international operation.
“While local vendors tend to primarily care about their sliver of the business, HSP Group is, as the single provider, fully invested in the success of the entire organization.”
Head of Finance and Operations at a fast-growing FinTech