Will you wait for
the future to happen,
or take a hand
in shaping it?
Following Brexit, the Netherlands might
be the right location for you.
Why the Netherlands is attractive
to business – in 30 facts
Companies established in the Netherlands can benefit from a wide range of European
rules and regulations available only for companies established within the EU.
EY1 can help you map threats and opportunities triggered by the Brexit. We will help you
calibrate your business strategy considering the impact Brexit may have.
Key facts
How EY can help
General
1. Connectivity: the Netherlands has excellent internet facilities. The Netherlands is the ideal hub
location, providing excellent connectivity with Europe and other parts of the world through one of
the world’s fastest internet connections, according to Akamai global average connection speed
rankings.
2. Language skills: One of the best scoring European countries in terms of English proficiency. Dutch
schools are ranked the best in Europe. Many international schools in Amsterdam and The Hague.
3. Quality of life: Amsterdam, with its beautiful historic centre, ranks 11th in Mercer’s worldwide
quality of life index. Dutch children are claimed to be the happiest children in the world, according
to Unicef. Amsterdam has been a centre of culture and fine arts for many centuries.
EY can help with:
• Demonstrating the advantages of being located in
the Netherlands compared to other countries.
• Location and site selection support.
• Multicriteria modelling of international locations in terms of costs
and benefits.
4. Cost of living: the Netherlands has a lower cost of living compared to most other major European
countries
5. International centre of commerce: the Netherlands is home to over 8,000 foreign companies.
Amsterdam is a multi-cultural city, buzzing with foreign languages and cultures.
6. Infrastructure: Excellent transportation infrastructure. Amsterdam has one of Europe’s best
airports, and an excellent rail and road network connecting major European cities, including
Berlin, London, Paris and Frankfurt. It’s a short one hour train ride to Brussels, the capital of the
European Union.
People, labour and employment conditions
7. Visa: Fast-Track permits for highly skilled knowledge migrant employees.
• Advise and assist in application and managing mobility processes.
8. Expat ruling: Tax free allowance for specific foreign employees working in the Netherlands
(30% facility).
• Advise and assist in the application for a 30% facility. EY has a special
agreement with the Dutch tax authorities which generally results in
an easier and quicker application process.
9. Social security rates: Capped at low rates (reducing overall labour costs).
•R
eview social security position and prepare salary cost projections
and comparisons. Flexible and tax efficient structuring of bonus
and fringe benefits.
10. L
abour Law: Good possibilities for flexible hiring of staff. Dismissal law has been adapted to the
needs of a modern labour market and provides clear guidelines. Dutch labour “consultation”
model provides for rather harmonious relations between employers and employees.
• Review, advise and optimize employment framework adapted
to the desired level of flexibility. Assistance in (multinational)
co-determination processes and management of trade union
involvement.
• Assess and optimize the bonus scheme. For the financial
markets, there is flexibility to optimize the bonus potential
to 100% of the salary.
Legal
11. C
orporate Law: the Netherlands has an advanced legal system with a sophisticated corporate
legal and corporate governance system, and flexible legal forms.
• Assist in setting up legal entities, draft articles, optimize structures
and governance models, draft corporate, commercial and
employment contracts.
12. R
eorganizations: Within the EU, cross border reorganizations (mergers, split up’s, spin off’s,
migration etc.) are accepted and harmonized.
• Explain and advise on the available possibilities for reorganizations
among entities based in EU member countries.
13. D
ata Protection: the Netherlands has no requirement to enter into separate agreement(s)
for transferring personal data to other EU countries and it is part of the new EU General
Data protection regulation which offers one uniform comprehensive privacy framework
within the EU.
• Analyse and advise upon your position.
14. BITS: the Netherlands has an extensive network of bilateral investment treaties (“BITS”)
that offers foreign investors the highest level of protection and security in many states
across the globe.
• Explain and advise on the advantages and use of BITS.
1 Legal services are being provided through HVG, a Netherlands law firm associated with EY Tax
Key facts
How EY can help
Direct tax
15. F
rom a tax perspective, the Netherlands is considered one of the most attractive locations in
Europe for HQ, finance and other critical business functions. It levies no withholding taxes on
outbound interest and royalty payments and maintains an extensive tax treaty network that
provides for reduced withholding tax rates on outbound and inbound dividends, and on interest
and royalties received.
EY can help with:
• Determine the most tax efficient corporate structure, financial structure
and operating model. Assist and advice on the implementation of
your structure.
16. Dutch companies benefit from specific EU advantages, such as:
• EU Parent Subsidiary Directive: no withholding tax on outbound dividends within the EU.
• EU Interest and royalty directive: No witholding tax imposed on intra EU financing/licensing
activities.
• EU Merger directive: the ability to execute cross border reorganizations within the EU on a tax
neutral basis or minimal tax implications.
• Maximize the benefit of being established within the European
Union, e.g. benefit from EU non-discrimination rules and case law,
fundamental freedom of establishment, free movement of people
and capital. Assist in claiming EU tax exemptions.
17. Favourable participation exemption regime which provides 100% exemption for dividends and
capital gains from qualifying participations.
• Determine the most tax efficient corporate structure,
financial structure and operating model. Assist and advice on
the implementation of your structure.
18. Attractive R&D incentives such as a 5% effective tax rate on net earnings derived from assets to
which the innovation box applies.
• Determine the most tax efficient corporate structure,
financial structure and operating model. Assist and advice on
the implementation of your structure.
19. The Dutch tax authorities have a pro-business attitude which is reflected among others in
Horizontal Monitoring arrangements, Advance Tax Rulings and Advance Pricing Agreements.
• EY is the leading firm in obtaining Advanced Tax Rulings and
Advanced Pricing Agreement with the Dutch Tax Authorities.
Indirect tax
20. As an EU country, the Netherlands benefits from the harmonized EU VAT regime, allowing for
0% VAT rated supply of goods and services within the EU.
• Brexit will have significant consequences for UK/EU VAT reporting
and filing, and will also impact custom duties and import procedures.
21. The Netherlands has optimized cash saving possibilities, for instance by allowing a deferral of
payment of import VAT, or by netting off input VAT due upon import against output VAT on the
same tax return.
• EY can help obtain an EU VAT number and assist in structuring the
tax efficient supply of goods and services within the EU. Some EU
countries have slow refund procedures; in those cases it is worth
considering an alternative – intra EU - structure of the sale, so that
there is no cash outlay. Likewise, we will assist in dealing with a
supply of goods and services to and from the UK and other countries
outside the EU, in order to minimize adverse VAT consequences and
prolonged cash outlays. We assist in processing VAT refund requests
in relation to trade with non-EU member countries.
22. VAT registration and compliance: registering for VAT purposes in the Netherlands includes the EU
VAT registration and entrance to the VAT Information Exchange System (VIES).
• Via this system, EY can assist you with the filing of VAT returns for
other EU countries from your EU country of residence (the Netherlands)
under a standardized format; this is currently still restricted to
e-commerce and certain network services but will soon be expanded
to include the supply of goods.
23. Dutch companies may benefit from centralized VAT registration in all EU countries simultaneously
under the EU VAT MOSS rules (Mini One Stop Shop). Similarly, centralized VAT filing under the
EU VAT MOSS rules is allowed for Dutch companies.
24. No VAT registration requirement for intermediaries in triangulation arrangements (A-B-C).
• The Netherlands as gateway into the EU offers maximum flexibility in
terms of warehousing function (e.g. in case of returned goods or
where a local warehouse in EU customer country does not have the
particular product, products can be exchanged with a central EU
warehouse in the Netherlands, free of VAT).
25. Dutch (and other EU) companies can benefit from various EU Free Trade agreements and from
EU customs licenses and authorizations.
• EY can help you establish flexible bonded warehouses, customs
licenses and authorizations, and determine whether your supply
chain meets preferential origin requirements of the EU.
Regulatory
26. The Dutch regulators aim to promote the efficiency of the financial markets.
• Assist in EU bank passport and license application processes.
27. FinTechs are eligible for favourable regulatory treatment on the basis of a so called banking
“light” regime. The existence of the DNB/AFM innovation hub also accommodates new business
initiatives.
• Assist in obtaining EU bank passport and licence required for
Payment Services Providers. Both the “light” and the full license
application processes are fully supported.
• Facilitate the end-to-end transition to the new target operating model.
28. P
roduct Marking: Products marked in the Netherlands comply with the EU CE-marking regime.
By affixing the CE-marking to a product, a manufacturer declares that the product meets all the
legal requirements for CE-marking and can be sold throughout the EEA.
•A
dvice on and assistance with all regulatory steps.
29. Sector Permits: certain sectors, e.g. pharmaceuticals, telecommunications and real estate
require a variety of permits in order to operate in the EU/the Netherlands. Such permits are
almost entirely EU regulated and if such permits are obtained in the Netherlands these ensure
EU wide validity.
• Advice on and assistance with all regulatory steps.
30. Passporting: Financial firms from non-EU countries can benefit from EU passporting rules by
setting up a subsidiary in the Netherlands and passport that business throughout the EU without
additional authorization from other EU countries. This applies for example to banking, financial
leasing, money transmission, underwriting securities, portfolio and management advice.
• Advice on and assistance with all regulatory steps.
Contact
EY | Assurance | Tax | Transactions | Advisory
Marije van Huis
International Location Advisory Services
+31 88 407 20 73
[email protected]
About EY
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Arnoud Driessen
People Advisory Services
+31 88 407 15 27
[email protected]
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Jan Padberg
Corporate Law
+31 88 407 04 29
[email protected]
Suzanne Bos
Employment Law
+31 88 407 24 72
[email protected]
Shima Heydari
Indirect Tax FSO
+31 88 407 14 15
[email protected]
Alexander Huiskes
Risk Advisory Services
+31 88 407 16 46
[email protected]
Misha Lutje Beerenbroek
Product Regulatory & Compliance
+31 88 407 21 24
[email protected]
Dirk Stalenhoef
International Tax Services
+31 88 407 19 77
[email protected]
If you have any questions or concerns please email
the EY Brexit Desk: [email protected]
Legal services are being provided through HVG, the Netherlands law firm
associated with EY Tax and part of EY Law
© 2016 EY Netherlands LLP
All Rights Reserved.
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