Is Netherlands good for investment?
Excellent country for business and a great place to live
Strategic geographical location. The Netherlands is at the crossroads of international trade routes. This makes the country a prime place for companies looking to amplify their global reach. As a gateway for business, companies can connect with Europe and the world from the Netherlands.
The Netherlands is a stable place to invest your money, with the economy having recovered well from the impacts of the Covid-19 pandemic. The Netherlands ranked eighth in the world in the 2022 Index of Economic Freedom.
Strengths of the Dutch economy include the Netherlands' stable political and macroeconomic climate, a highly developed financial sector, strategic location, well-educated and productive labor force, and high-quality physical and communications infrastructure.
There are no restrictions placed on foreigners for buying property in the Netherlands, but there are some quirks of the Dutch housing market you should know before buying a home. Whether you've just moved to the Netherlands or are already well-established, you may want to consider the benefits of buying a home.
Why was the Dutch Republic so successful? The Dutch economy primarily flourished due to its efficient textile, shipbuilding, and agricultural industries; its development of an advanced financial system; and its establishment of monopolies on international trade such as in spices, sugar, and slaves.
Effectively, the Netherlands is a conduit country that helps to funnel profits from high-tax countries to tax havens. Particularly the Dutch Special Purpose Entities attract income, often as interest and royalty payments, and pass it on, effectively untaxed, to tax havens.
E-commerce Business
One of the most profitable business opportunities in the Netherlands is to set up an e-commerce business in the Netherlands. With a 97% internet penetration rate and a love for convenience, the Dutch embrace online shopping with open arms.
The Netherlands is generally considered to be one of the wealthiest countries on earth, though Allianz considers the country to be in exactly ninth place with average gross financial assets of 156.920 euros per capita.
While the answer to this question is quite subjective, a gross salary of €70,000 ($81,000) per year would put you in the top 5% of income earners in the Netherlands. Which equals to a net monthly salary of €3,832 ($4,440) per month.
What are the weaknesses of the Netherlands?
Among the weaknesses of the country are the very high level of debt of private households (223% of disposable income in 2021) and the ageing population, which means the pension system is under pressure.
The Netherlands has a high cost of living, which includes everything from accommodation, groceries, and services. On average, the cost of living in the Netherlands is 10.7% higher than in the UK. Owning a car is particularly expensive, with high road tax and expensive repair costs.
Perhaps worsened by the coronavirus (COVID-19) pandemic, Russia-Ukraine war, and the subsequent cost of living crisis, approximately two-thirds of Dutch citizens were not financially healthy in 2022. Around a third of residents were financially unhealthy, and a further third were financially vulnerable.
The average sales price of a home in the Netherlands peaked in August 2022, followed by a decline in the following months. In September 2023, it cost on average over 422,000 euros to buy a home, down from 438,000 euros in the same month the year before.
Prices for a one-room apartment in the city center range from 900 to 1,750 euros per month. In Delft or Utrecht - from 650 to 900 euros. Also, when planning a moving estimate, you should take into account preliminary expenses - a deposit, rent for one or two months, and current expenses.
What is a good salary in The Netherlands? Of course this is really subjective, but I would say a good salary in The Netherlands starts from around € 60,000. This is € 5,000 per month. From this salary you can have a very comfortable life in The Netherlands.
Dutch disease is a concept that describes an economic phenomenon where the rapid development of one sector of the economy (particularly natural resources) precipitates a decline in other sectors. It is also often characterized by a substantial appreciation of the domestic currency.
Wealthiest municipalities are Bloemendaal and Laren
The data shows that most millionaire households live in Bloemendaal or Laren - this is largely unsurprising, as these municipalities are known for their wealth and high property prices. In Bloemendaal and Laren, around three in every 10 people are millionaires.
The Netherlands
In 2021, the average net worth was $377,090 for this nation. In 2019, the Dutch people had approximately 223,000 millionaire households.
The structure relies on the tax loophole that most EU countries will allow royalty payments be made to other EU countries without incurring withholding taxes. However, the Dutch tax code allows royalty payments to be made to several offshore tax havens (like Bermuda), without incurring Dutch withholding tax.
What is the tax scandal in the Netherlands?
'[childcare] benefits affair') is a political scandal in the Netherlands concerning false allegations of fraud made by the Tax and Customs Administration (Belastingdienst) while attempting to regulate the distribution of childcare benefits, that led to the collective resignation of the government in early 2021.
According to modern studies, the § Top 10 tax havens include corporate-focused havens like the Netherlands, Singapore, Ireland, and the U.K., while Luxembourg, Hong Kong, the Cayman Islands, Bermuda, the British Virgin Islands, and Switzerland feature as both major traditional tax havens and major corporate tax havens.
- Become an online freelancer.
- Start a webshop.
- Sell products on marketplaces.
- Launch an affiliate marketing business.
- Monetize a blog or website.
- Invest in websites and apps.
- Rent out your home, car or other assets.
| Characteristic | 2020 | 2022 |
|---|---|---|
| Sporting goods | 22.9% | 26.1% |
| Furniture, home accessories and garden items | 23% | 24.7% |
| Food and beverages | 17.7% | 24% |
| Printed books, magazines and newspapers | 21.2% | 21.4% |
- Lawyer (€130,000) ...
- Prime Minister / Minister (€170,000). ...
- Pilot and captain (€ 180,000) ...
- Private banker or real estate investor (€180,000) ...
- Operations or finance director (€ 190,000). ...
- CEO/General Manager (€210,000). ...
- Senior Medical Specialist (€220,000) ...
- Plastic surgeon (€420,000)
