1. Strategic Location in Europe
2. International Business Environment
3. Superior Logistics and Technology Infrastructure
4. Highly Educated, Multilingual & Flexible Workforce
5. Quality of Life
6. Tax Environment

1. Strategic Location in Europe

The Netherlands provides a strategic location to serve and service markets within the European Union as well as Central and Eastern Europe, the Middle East and Africa. The central geographical position of the Netherlands, combined with a good accessibility and excellent infrastructure, are only some of the reasons why numerous European, American and Asian companies have established their facilities in the Netherlands.

2. International Business Environment

The Netherlands, long Europe's trading crossroads, is an obvious choice to locate a pan-European operation, whether it is a European headquarters, a Shared Services Centre, a Customer Care Centre, a distribution and logistics operation, or an R&D facility. The country's pro-business environment creates a gateway to Europe that helps international companies succeed throughout the continent. An international outlook and openness to foreign investment is firmly engrained in the Dutch culture, and this has yielded a wealth of world-class business partners who know how to deal with global business challenges in today's economy.

3. Superior Logistics and Technology Infrastructure

The Netherlands is, with the port of Rotterdam, still ranked as the world's 3rd largest seaport, while Schiphol Airport is recognised as one of the major business hubs in Europe and has claimed over 100 international awards over the last years. The Netherlands is also classified as one of the most "wired" countries in the world, a dynamic force in electronic commerce, communications and outsourcing. More than a decade of investment in high-speed internet, cable and digital communication systems and the rapid adoption of state-of-art computer and mobile phone technology, has created an ideal base for companies seeking to take advantage of the modern technology.

4. Highly Educated, Multilingual & Flexible Workforce

The Netherlands features one of the most highly educated, flexible and motivated workforces in Europe. Dutch professionals are also among the most multilingual in the world, enabling them to successfully operate in companies across any industry serving customers throughout the continents.

5. Quality of Life

The Netherlands is proud to have a high standard of living. The costs of living, housing, education and cultural activities are lower than in most Western European countries.

6. Tax Environment

The Netherlands has always had a favourable tax environment for companies operating across the borders and futher improvements are being made:

• The corporation tax rate has been lowered in recent years and is to be cut to 25.5% on 1 January 2007.
• In the Netherlands, taxpayers can traditionally find out for certain, in advance, what fiscal effects a planned transaction will have. Since 2001, this has been accomplished through advance pricing agreements (APA) and advance tax rulings (ATR). This APA/ATR system meets OECD and EU standards. It is a reliable system which will remain effective for years to come. Taxpayers can always obtain clarity in advance on how long it will take to process the APA or ATR application.
• For decades, profits generated by (qualifying) participations in companies, have been tax-exempt for entities based in the Netherlands. This participation exemption sets an international standard. Since 2003 the costs of foreign participations have also been deductible from taxable profits in the Netherlands.
• The Netherlands now has 75 tax treaties in force, more than most other countries. The Dutch perspective is that double taxation should not stand in the way of international business. The Netherlands have no withholding tax on interest and royalties. In tax treaties the Netherlands aims for a 0% rate of taxation on dividends on (qualifying) participations, interest and royalties.
• Company capital duty, a tax on the raising of capital by companies - through share issues for example - has been abolished on 1 January 2006. This change will make it more attractive for companies to raise capital to develop new activities or strengthen their financial structure. Company capital duty was levied at 0.55%.
• The Netherlands offers a tax break for foreign emplyees who come to the Netherlands to work, known as the 30% regulation. This allows employers to make a fixed tax-free payment.