Netherlands: Investing

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.

After slowing down following the international financial crisis in 2008, the FDI flux began to grow again and this trend should continue despite the unfavorable international situation.

The 2011 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.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	-7,621	34,514	-16,141
FDI Stock (million USD)	638,801	659,305	589,825
Performance Index*, Ranking on 141 Economies	140	54	-
Potential Index**, Ranking on 141 Economies	13	-	-
Number of Greenfield Investments***	173	155	-
FDI Inwards (in % of GFCF****)	-4.3	12.0	-
FDI Stock (in % of GDP)	73.2	75.3	-

Source: UNCTAD - Last Available Data.

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.

FDI Inflows By Countries and Industry

Main Investing Countries	2010, in %
United States	15.9
United Kingdom	13.4
Luxembourg	12.1
France	9.9
Germany	8.3
Belgium	6.9
Ireland	4.7

Main Invested Sectors	2010, in %
Mining, oil and chemicals	25.3
Banking and insurance	17.4
Food, drinks, tobacco	11.9
Trade	9.7
Transport, storage and communications	9.0
Other services	13.5

Source: The Netherlands Bank - Last Available Data.

Form of Company Preferred By Foreign Investors: N. V. (Public Limited Liability Company)
Form of Establishment Preferred By Foreign Investors: Company
Main Foreign Companies: National Foreign Investment Agency has stories and names on their website.
Sources of Statistics: Dutch Statistics Agency
Dutch National Bank

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 well below the European Union average. The whole of the government measures can be referred to on the Netherlands Foreign Investment Agency website.

Protection of Foreign Investment

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.
International Controversies Registered By UNCTAD: The Netherlands has not been involved in any case of disagreement concerning foreign investment up to now.
Organizations Offering Their Assistance in Case of Disagreement: ICCWBO , International court of arbitration, International chamber of commerce
WTO , World Trade Organization
Member of the Multilateral Investment Guarantee Agency: The Netherlands has been a member since its creation.

Country Comparison For the Protection of Investors

	Netherlands	OECD	الولايات المتحدة	Germany
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 - Last Available Data.

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.

Procedures Relative to Foreign Investment

Freedom of Establishment: Guaranteed.
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.

Office Real Estate and Land Ownership

Possible Temporary Solutions: Companies are ensured a wide selection of prime office space to rent or purchase. Over the last few years, prices have declined to a constant level while total available office space has increased to 5.8 million square meters at the end of 2004. This positive supply and demand dynamic is why the Netherlands ranks above most other EU nations for availability of prime, affordable office space.

With this high availability also comes greater flexibility in terms of negotiating lease terms, contract length and more. From high-rise and historic reconstruction in center city and urban environments to business parks and complexes in more suburban environments, the Netherlands offers you many location choices.

In addition, the Netherlands has fully furnished and equipped business support centers available for rent, enabling new companies to hit the ground running with minimal start-up costs. Office space in these centers may be rented by the hour, day, month, year or longer.
The Possibility of Buying Land and Industrial and Commercial Buildings: Yes
Risk of Expropriation: Expropriation would only take place in case of public interest and with adequate compensation. Up until now there have ben no expropriations recorded.

Investment Aid

Forms of Aid: Concerning new businesses and investment incentives, investors can contact the Netherlands Foreign Investment Agency (NFIA) and the Netherlands Foreign Trade Agency.
Privileged Domains: Zones that are attractive to invest are the computer software, computer industries, chemicals, security equipment, medical equipment and pollution control (equipment) among others.
Laws and regulations that affect FDI apply equally to foreign and domestic companies.
Privileged Geographical Zones: Randstad area is the most interesting to invest in due to its location (near Schiphol Airport and the Rotterdam Port)
Free Zones: None.
Organizations Which Finance: The Dutch national bank and the European bank loan at favorable rates.

Investment Opportunities

The Key Sectors of the National Economy: Agroindustries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics and fishing.
High Potential Sectors: Computer software, computer services, automotive parts and accessories, seaport & airport security equipment and systems, transport and distribution services, aircraft parts and associated equipment, medical equipment and supplies and pollution control equipment.
Privatization Programs: The energy and post market are in the process of privatization.
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

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors: Gambling industry
Sectors in Decline: Agriculture and fishery

Finding Assistance For Further Information

Investment Aid Agency: Netherlands Foreign Investment Agency
Netherlands Foreign Trade Agency
Other Useful Resources: Dutch Ministry of Economy
Doing Business Guides: Deloitte's Netherlands, International Tax and Business Guide
Netherlands Commercial Guide 2010 - Buy USA
Expatax Guide to Doing Business in the Netherlands

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