Foreign Direct Investment in the Netherlands
FDI in Figures
The Netherlands is one of the European countries that attracts most of direct foreign investment (FDI). A strong international orientation and a liberal policy towards foreign investment are the characteristics of the Netherlands' policies in this field. Many Dutch companies are multinational by nature and a large number of these are listed on the foreign stock markets. There are no regulatory restrictions on foreign direct investment.
The Netherlands had shown an increase of its FDI stock until 2007; however, due to the financial international crisis, the FDI flows declined in 2008. They have begun to increase again, a trend that should remain.
The global investment report of the UNCTAD classifies the Netherlands as a front runner in what concerns countries with a high potential and a good performance for FDI.
Country Comparison For the Protection of Investors
|Index of Transaction Transparency*||4.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||5.2||9.0||5.0|
|Index of Shareholders’ Power***||6.0||6.8||9.0||5.0|
|Index of Investor Protection****||4.7||6.0||8.3||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||115,365||-7,621||26,949|
|FDI Stock (million USD)||728,212||638,801||596,669|
|Performance Index*, Ranking on 141 Economies||13||140||54|
|Potential Index**, Ranking on 141 Economies||15||13||-|
|Number of Greenfield Investments***||131||173||155|
|FDI Inwards (in % of GFCF****)||74.2||-4.3||12.0|
|FDI Stock (in % of GDP)||93.6||73.2||75.3|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Why You Should Choose to Invest in the Netherlands
- Strong Points
- The Kingdom's strong points are highly developed communication and transport infrastructures, a skilled, productive and multilingual labor force, a strategic geographical location which is a gateway towards major European markets, a stable political and macro-economic environment and a very developped financial sector.
- Weak Points
- The country's weak points are the high cost of labor, the limited domestic market, relatively complicated legislation, a cumbersome administrative system and a structurally faulty road infrastructure.
- Government Measures to Motivate or Restrict FDI
- The Dutch economy is amongst the most open in the world. Since January 2007, the Dutch taxation environment for international companies has become even more attractive. The company taxation rate has dropped by 25.5%, which is well below the European Union average. The whole of the government measures can be referred to on the Netherlands Foreign Investment Agency website.
- Bilateral Investment Conventions Signed By the Netherlands
- The Netherlands has signed IBOs with a large number of countries. You can consult the list on the UNCTAD's website.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Acquisition of Holdings
- A majority holding interest in the capital of a Dutch company is legal. Certain sectors such as telecommunications, banking and insurance require the granting of an authorization.
- Obligation to Declare
- No specific text of law regulates foreign direct investments. Their regime is adjusted the refine applied for national investments.
- Competent Organization For the Declaration
Dutch Ministry of Finance
- Requests For Specific Authorizations
- Not needed.
- Investment Aid Agency
Netherlands Foreign Investment Agency
Netherlands Foreign Trade Agency
- Tenders, Projects and Public Procurement
EBP, Tenders and Projects in Netherlands
Tenders Info, Tenders in Netherlands
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide
- Other Useful Resources
Dutch Ministry of Economy
Any Comments About This Content? Report It to Us.
Find the related Dutch companies with Kompass:
Internationalization Consulting, BrazilHow2Go specializes in bilateral internationalization of companies from Europe and America, formed by a team of...