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The Challenges and Benefits of Expanding to the Netherlands

Although the Netherlands is by no means the largest country in the European Union, in fact, the Netherlands is one of the EU's most closely connected countries. Its privileged location and extensive resources provide many impressive benefits for companies seeking international business expansion - even ranked 7th in the world by Forbes as the "Best Business Country."

Here, On Demand International examines the benefits and challenges of expanding your business to the Netherlands.

Benefits

Benefits

Location

Companies in the Netherlands can get 95% of European services within 24 hours in Amsterdam and Rotterdam, which are the two main hubs of the country. There are 170 million consumers in the 500-kilometer range and 244 million consumers in the 1,000-kilometer range. Your company's products and services may have a healthy market.

The country has the best port infrastructure in Europe - the Port of Rotterdam, which processes 4.612 million tons of cargo a year, and Amsterdam Port is the fourth largest port in Europe, handling 100 million tons of cargo a year. In addition, the country is also the third busiest airport in Europe, home to Amsterdam's Schiphol Airport. In 2016, the number of passengers exceeded 63.6 million and it flew to 176 destinations. Finally, according to the 2016/2017 Global Competitiveness Report, the Netherlands' road infrastructure ranks fourth in Europe and its railway system ranks seventh in Europe. The combination of all these factors makes the Netherlands a highly convenient country for international expansion.

Highly educated

The Dutch workforce is very suitable for international business – not only because the Dutch higher education system ranks third in the world, but also because these well-educated citizens usually speak multiple languages ​​and speak multiple languages, including English, French and German.

International friendly workforce

 

The Netherlands has more than 1 million foreign workers - this is a convenient place for international business expansion, as high-skilled immigrant visas allow companies to bring highly qualified expatriates to work in Dutch offices. There is also a favorable foreign tax plan and an extensive network of approximately 100 bilateral tax treaties designed to avoid double taxation and impose tax deductions or no withholding taxes on dividends, interest and royalties.

challenges

Challenges

Open market

Although the Netherlands has such an open market with sufficient business and opportunities, it is also a disadvantage for those who want to expand internationally in a highly competitive market. In addition, due to the convenience of doing business in the Netherlands, many companies have established international offices in the Netherlands to provide domestic and international competition for companies wishing to enter the market.

Cultural difference

Dutch culture and customs are a unique part of Dutch life, and companies must recognize these differences and adapt to them to expand successfully. Courtesy is highly valued. Talking about a person's income, personal and intimate issues, and things related to appearance are considered rude. The Dutch appreciate the quick response and consistent service and hope to handle things as quickly and efficiently as possible.

When considering the expansion of the Netherlands, the interests of most companies will outweigh the challenges. Doing business in the Netherlands is a great way to enter the international market and seamlessly connect your business to the rest of Europe.

Whether you are considering expanding to the Netherlands or other markets, the On Demand International team of experts can help you make the best decisions for your business growth. Our international extended concierge service provides expert advice and solutions to help you seamlessly expand your business. Contact us today to find out how we can help you expand your business to the European market and beyond.

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