The Dutch investment climate is generally considered as strong. Factors contributing to an attractive Dutch investment climate include – among others – a favorable tax regime, a generally skilled and bilingual workforce, a good infrastructure and a reliable government. But AmCham’s recent study on the Dutch investment climate executed by Bain & Company, shows that it is becoming less favorable in comparison to other EU countries for establishing US origin headquarters. This is likely caused by – for instance – lower tax rates in other countries and their efforts to attract foreign investments by favorable special programs. AmCham feels it is important to turn around such development. There is no doubt that new investments in the Netherlands will bring new jobs, whilst a standstill in the development of the Dutch investment climate as compared to other countries, may potentially cause a loss of jobs due to relocation to more competitive countries.
For the 2016 Priority Points, AmCham strives to:
- SECURE and SUPPORT the great elements of the Dutch investment climate;
- DEVELOP and IMPROVE outdated elements of the Dutch investment climate in order to keep up with new (technological) developments and the fierce competition of other countries;
- ATTRACT new (US) investors, talent and business;
- SUPPORT entrepreneurship, innovation and a competitive regulatory framework.
Key points of attention:
- TAXES: an attractive and competitive fiscal climate as important basis for the Dutch investment climate;
- HUMAN CAPITAL: attract talent, invest in development of the workforce and ease employment protection;
- INDUSTRY: support entrepreneurship and innovation, limit EU regulation costs and avoid national goldplating;
- DATA PRIVACY: closely monitor new developments;
- TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP (TTIP): AmCham continues to fully support TTIP.
Key findings of the study on the Dutch investment climate (research by Bain & Company):
- Foreign Direct Investment (FDI) is important to the Dutch economy. However, the Netherlands is losing FDI share to other countries, primarily the UK.
- Foreign multinational enterprises (F-MNEs) account for ~20% of Dutch jobs, and the jobs they provide are generally higher paid.
- BEPS (Base Erosion and Profit Shifting - OECD) regulations will affect the influx of FDI and F-MNEs by limiting tax flexibility. This will make ‘ease of doing business’, and to a lesser extend corporate tax rate, more important than before.
Download the full text of the 2016 Priority Points and a Summary of AmCham's Study on the Investment Climate in the Netherlands here.