Advantages. With Brexit -or at least a decision on it- rapidly approaching, the uncertainties any Brexit decision will bring will soon become reality. If you own or ‘are’ a British operation, especially one with major reliance on smooth EU market access, it may therefore be wise to relocate your operations. If you contemplate this, we want to make sure that you shortlist The Netherlands, which is tailored to help you reach your targets. Why The Netherlands?The Netherlands has one of the best (digital) infrastructures in the world. Centrally located within Europe with easy accesses to many other cosmopolitan cities like Paris, London and Brussels. Schiphol airport is the third busiest airport in Europe, offering excellent connections to other parts of the world. In addition, Rotterdam has one of the largest and busiest harbors in the world, processing around 4 million containers annually. Therefore, the Netherlands is known as “the gateway to Europe”.
As one of the founding fathers and member of the European Union, the Netherlands offers the advantages that come with EU membership. These include accesses to the internal market and the protection of free movement of goods and services.
Furthermore, the Netherlands offers:
- A highly educated population
- A stable economy and political environment
- Reliable and highspeed internet
- Excellent legal system
- High quality of life
- Versatile business operations
Competitive fiscal climateThe Netherlands offers you one of the most competitive fiscal climates compared to other European countries. This stems from the Dutch vision to stimulate international entrepreneurship, trade and investment in order to expand the Dutch market. Key features of our fiscal climate include:
- Possibility to obtain advance certainty on tax treatment by means of an Advanced Tax Ruling (ATR) or Advanced Pricing Agreement (APA)
- Lower tax rate for profits derived from innovation (innovation box) and incentives for R&D
- Harmonized indirect taxes within the European Union
- Participation exemption in CIT, excluding profits deriveds from foreign business activities from the Dutch taxable base
- Excellent tax treaty network to prevent double taxation
- 30%-ruling for expats, exempting 30% of income from income tax
- Special regimes for Charities and Public Benefit Organizations
Charities: special relocation considerations for European Subsidies Charities and entities that receive subsidies from the European Union could consider relocating to the Netherlands in order to secure these funds after Brexit. In addition, foundations and associations can be qualified as Public Benefit Organizations (PBOs) if the institutions’ efforts are focused on common interests of general importance. As a result, such foundations can enjoy several tax advantages:
- Natural and legal persons making donations to PBOs may deduct their gifts in their Dutch income tax returns.
- A PBO does not pay Dutch inheritance tax or gift tax on funds it receives.
Special shortlisted city: The HagueOne of the cities that historically attracts many charities is The Hague, an ideal place to relocate your foundation or business to. Within the Netherlands, The Hague is centrally located between Amsterdam and Rotterdam, and has a metro population of over 1million people. It is the seat of government and positions itself as the “International City of Peace and Justice”. As such, it houses the International Permanent Court of Arbitrage and the headquarters of numerous human rights-focussed organizations such as Unicef, Cordaid en the Red Cross. Furthermore, the cost of living is relatively low compared to other cosmopolitan cities, and in our humble opinions, the city center is one of Western Europe’s most beautiful. Added bonus: we have a beach! Convinced? Let’s get in touch!