Inversió estrangera directa (IED) als Països Baixos

FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI flows to the Netherlands were negative by USD 168.4 billion in 2023, a trend that continued since 2020. At the end of the same period, the total stock of FDI stood at USD 2.67 trillion, one of the highest in the world. As per the latest available figures from CBS, in 2022, multinationals made up 2% of Dutch businesses (26.4 thousand firms) and accounted for 19% of employment. The U.S. led foreign-owned firms with 3,130 companies, while Germany, the UK, Belgium, and France jointly comprised 44%. German, French, and UK firms were the largest employers, with Belgian companies providing fewer jobs. According to data by CBS, the countries holding the majority of the FDI stock as of 2023 were the U.S. (USD 540 billion), the UK (USD 444 billion), Germany (USD 237 billion), and Luxembourg (USD 210 billion). The majority of foreign-owned multinationals in the Netherlands are active in the wholesale and retail trade sector (around 37%), followed by specialised business services (17%), manufacturing (13%), and information and communication (12% - CBS). According to the latest figures from the OECD, FDI inflows to the Netherlands reached USD 23.5 billion in the first semester of 2024.

The Netherlands is one of the largest recipients and sources of FDI globally. The Dutch investment policy is characterized by a strong international orientation and a liberal policy towards foreign investment. Many Dutch companies are multinational by nature and some of these are listed on foreign stock markets. The Netherlands offer a competitive fiscal climate, advanced infrastructures, and a strategic location, and treats foreign and domestic nationals equally in establishing and operating private companies. On the other hand, the country has a small internal market and is heavily dependent on the economic performance of its partners (especially in the EU). Sector-specific screening regimes are in place for the telecommunication sector, electricity and gas. On June 1, 2023, the FDI Act, officially known as the Security Screening of Investment, Mergers and Acquisitions Act, came into effect. This legislation imposes a mandatory notification requirement for investments in target undertakings across various sectors, including nuclear energy, gas and extractable energy, transportation, heat transport networks, banking and financial sectors, military goods, and items classified as dual-use, among others. Unlike FDI screening mechanisms in certain EU member states, the FDI Act adopts a "country-neutral" approach, encompassing Acquisition Activities not only from non-EU investors but also from those within the EU and, notably, within the Netherlands. The country’s excellent business climate is shown in its standing in international rankings, as it stands 9th out of 67 economies in the Global Competitiveness Ranking. It also ranks 8th among the 133 countries on the Global Innovation Index 2024 and 11th out of 184 on the latest Index of Economic Freedom.

What to consider if you invest in the Netherlands

Strong Points

The main assets of the country's economy are :

• An overall stable political and macroeconomic environment above the European average, healthy public finances and a highly developed financial sector; 
• Highly developed communication and transport infrastructures
• A qualified, productive and multilingual workforce that makes it suitable for export trade
• A strategic geographical location, which makes it a gateway to the main European markets
• Exports are diversified and external accounts are in surplus thanks to export-friendly structures and infrastructure.  

Weak Points

The main weaknesses of the country for FDI are:

• High costs of the workforce
• The small size of the internal market
• A great dependence on the world economic situation and, in particular, the EU
• Banks dependent on wholesale financing and real estate

Government Measures to Motivate or Restrict FDI

The Dutch government offers several types of financial support: grants, tax incentives, guarantees, credits, participations, subordinated loans stimulating innovation and sustainable foreign investment and entrepreneurship.

• The WBSO (Research and Development Act). This is an R&D tax credit from the Ministry of Economic Affairs and Climate Policy. It aims to offer entrepreneurs an incentive to invest in R&D, allowing companies to decrease costs for R&D.
• Energy Investment Allowance (EIA): allows companies to deduct 45% of the investment cost of energy-saving equipment from the taxable profit in addition to the deduction of the customary depreciation.
• Environmental Investment Deduction (MIA): allows companies to deduct up to 36% of the investment costs for an environmentally friendly investment on top of the regular investment tax deductions
• Arbitrary depreciation of environmental investments (Vamil): allows companies to amortize 75% of the investment costs of a qualifying environmentally friendly investment at once.
• Innovation box: Income that is a result from R&D is taxed at an effective rate of 7% (the normal tax rate is 25%).
• Dutch Good Growth Fund supports SMEs that are prepared to invest in developing countries and emerging markets.
• Export Credit Insurance is focused on promoting Dutch exports.

Moreover there are the regional incentives offered by the EU:
The European Regional Development Fund (ERDF). The ERDF is mainly focused on strengthening economic and social cohesion in the EU by correcting imbalances between its regions.
The European Territorial Co-operation (INTERREG). This programme, which is financed by the European Regional Development Fund (ERDF), finances and supports international co-operation within particular European regions.

All government measures can be consulted on the website of the Netherlands Foreign Investment Agency.

Bilateral investment conventions signed by the Netherlands

The Netherlands has signed BITs with a large number of countries. You can consult the list on the UNCTAD's website.