Why the Netherlands is the Best Place to Start a Business

The Netherlands is an open economy, and internationals are in hot demand. Because Dutch people are great English-speakers, expats can find jobs of every shape and size here. But corporate life isn’t for everyone.

Has working a 9-5 at an office gotten to be a grind? Do you long for creative freedom, away from your micro-managing boss? Does working when and where you want sound good to you? It might be time to start thinking about the Netherlands’ booming self-employment scene.

In 2013, there were about 1 million self-employed people without employees in the Netherlands. By 2022, this had grown to 1.2 million – accounting for roughly 12% of the Dutch workforce. Known as zelfstandigen zonder personeel, or zzp’ers, they enjoy a host of benefits. From flexible schedules, to choosing their clients, and setting their rates. And there are many more reasons why you would want to join them as an international in the Netherlands.

Curious to know more? Here are seven reasons why the Low Countries are the perfect place to become your own boss.

Spreek je Engels?

Succeeding as your own boss hinges on being able to communicate with clients. Looking to launch a new business in a country where English isn’t the first language is daunting for this reason. But while Dutch’s many de/het-style conundrums mean it is hard to master, it is not essential to doing business here.

The majority of people in the Netherlands speak excellent English. In fact, according to the EF English Proficiency Index (EF EFI), the Netherlands’ English-speaking capabilities are second to none. The country has held the title of best non-native English-speaking nation for four consecutive years.

You should still make the effort to learn Dutch in the long-run. It will broaden your horizons, and opportunities. But so many English speakers do make hitting the ground running as an expat ZZP’er a lot easier.

Quick and Easy

Setting up a business sounds like a hassle. You might assume that it would take a lot of complicated legal filings before you even get started. But the Netherlands is a renowned as an entrepreneurial country. It is keen to make it quick and easy to take your hot new ideas to market. Registering your business legally can take as little as an hour to do. It’s fast and simple, so there are no excuses not to get started!

The Kamer van Koophandel (KvK) is the Dutch Chamber of Commerce. As intimidating as the name sounds, it’s easy for would-be freelancers to book an appointment with an official, via its website. Pick out a name before attending – you can check what is available via the same site.

Bring official documents to the meeting – including your ID, and BSN number. Answer a few questions about what kind of work you will be doing, and the name of your business, and Bob’s your uncle. You’ll get a KVK number, and entered into the handelregister – the list of businesses in the Netherlands.

Dutch Direct Culture

Without wanting to play into stereotypes, the Dutch have hard-earned a reputation for being ‘direct’. They even have a word for it: bespreekbaarheid. Or, speakability. To some internationals this might be a breath of fresh air. There’s no dancing around elephants in the room for manners’ sake, as you might find in Britain, for example. To others, though, it might also seem like euphemism for being rude. Particularly when you get scythed down mid-sentence, because someone doesn’t like your idea.

Whatever your feelings on the matter, the truth of it is that in business, time is money. Being over-polite can be inefficient to that end. Meanwhile brutal honesty means that at least everyone knows where they stand in a deal. When you are trying to find new clients for your business, that is very important. It means you won’t waste half as much time on dead-ends as you might in other countries. Dutch clients will be the first to tell you if you are barking up the wrong tree.

At the same time, you will need to get to practice bespreekbaarheid in your own right. People here appreciate transparency with their possible clients. Flattery, as you might find in an American deal, has a tendency to put them on edge. So, getting to grips with this culture is essential to succeeding here. For more differences between Dutch business and other cultures – and help dealing with them – see our handy guide.

Remote Working

Dutch work culture places a strong emphasis on employee well-being. Remote work helps strike a healthier work-life balance. And it allows staff to manage stress and maintain their well-being. As such, home-working is well catered to here. The Flexible Working Act means staff can submit requests for “adaptation of the workplace” – including home working spaces – for example. With this support, one-in-three Dutch people work from home on a regular basis, according to TNO research.

But even if you choose to be your own boss, working from home in the Netherlands still has its perks. Every year, the Global Remote Work Index examines over 100 countries on various criteria. These include access to stable, fast internet connections, and human rights protections. The Netherlands’ societal conditions ensured that it finished a close second place! (It actually topped the poll in 2019.)

According to the study, the Netherlands performed particularly well on social safety. Its low crime rates, and strong protections for personal rights helped with this. As did the country’s reputation for having fast and dependable digital infrastructure and good cybersecurity. All this means the Netherlands is a great place to work from home. Either for a firm, or as an independent.

Tax Deductions

The tax offices of most nations make allowances for self-employed individuals. These would not always be available to employees of companies. The Netherlands is no different in this regard. If you are an entrepreneur for income tax purposes, then you can deduct the business costs from your annual profit. However, the Belastingdienst also offer up a number of further deductions.

For example, SME profit exemption is a tax deduction to your profit. It reduces the amount of your taxable profit, meaning you might have to pay less income tax. Meanwhile, new companies in the Netherlands also be eligible for tax relief of over €2,000 over their first five years in business. A list of all the deductions Dutch ZZP’ers could avail themselves of can be found on the business.gov.nl site.

High-skilled Workforce

Thanks to the 30% ruling, the Netherlands has accrued a high-skilled, global workforce. The tax ruling aims to encourage skilled migrants to the country. It means 30% of an expat employee’s wages can be tax free – for a period of five years. While you cannot avail yourself of this as a ZZP’er, or an eenmanszaak (a sole proprietorship) you can still benefit from its effects.

As a sole proprietor, you can still hire as many staff as you need. And if you do, you’ll be recruiting from one of the most diverse, digitally-skilled, and entrepreneurial labor pools in the world. You will also have your pick of a burgeoning expat community, with skills and knowledge drawn from almost every country you can name.

Great Support

Of course, every opportunity comes with risks, and every pro has its potential con. The liberty won by going freelance comes with less financial stability. As a self-employed professional, you will be required to save for your own pension. You will also have no guaranteed wage, if work in your niche dries up. And if you accrue debts, misfile taxes, or something else goes wrong, you will be personally liable for the situation. Considering if these kinds of risks are a worthy trade-off, to be your own boss, is different for everyone.

But if you do decide that going it alone is for you, there’s lots of support for your next steps. For example, you may need to change the kind of visa you are staying on in the Netherlands. This is easy to check, with the Dutch Government’s website explains what the processes and costs are online. At the same time, a wide and strong business ecosystem has evolved to help entrepreneurs launch their own companies. Firms like Blue Umbrella exist to make your life as an independent easier. The company offers a range of business services, from business tax support, to payroll administration. They even help applying for childcare allowance, and income tax refunds.

With all this in mind, the Netherlands really is the best place to start a business as an international. So, if you’re sick of corporate politics, and have an idea of how you’d do things better… Now might be the time to strike out on your own!