The BREXIT is a fact and international companies are wondering what the consequences on their company might be. International companies located in the UK, basically have two options:
Stay and face the unknown consequences?
Or move operations to the EU?
When exploring options and a new market entry in one of the EU-countries aspects as transportation and communications infrastructure, local regulations, business environment, strategic physical location and a cultural fit will be discussed at the board’s table.
While Ireland may seem a logical step for most UK companies, here’s 5 reasons why you should consider the Netherlands over Ireland.
1. Less Bureaucracy
Setting up a company in the Netherlands is less complicated for global entrepreneurs. Ireland has a policy which requires a non-resident directors bond in case no local/EU director is appointed. This is quite complex, and expensive. Furthermore, in order to open a bank account, or apply for a VAT number, a ‘fully fledged office’ is required. This will complicate your startup process, while in Netherlands such matters are less complicated.
2. Taxation
The Netherlands and the Republic of Ireland are both considered to be low tax countries with many treaties world-wide easing international business. Though both countries are well-known for beneficial tax regulations, the Netherlands has lower corporate income tax for certain industries such as innovative R&D and Investment Funds. Additionally, the Netherlands has a flat taxation system on all activities resulting in less-complicated bookkeeping.
The already beneficial corporate income tax will be further decreased to 16% for small and medium enterprises and to 22.25% for larger corporations (with profits over €200,000) in 2020. Furthermore, the darkening of the advantageous expat ruling has been postponed for another 2 years.
3. Centrally Located
The Netherlands is centrally located within Western-Europe and has a well developed infrastructure to easily reach over 700 million people within Europe. The Netherlands is well connected to the world with the 11th largest airport world-wide, the biggest harbor of Europe, well maintained railways, and a highly developed infrastructure for cars. Establishing a company in Ireland might require difficult supply chains because it is not connected to mainland Europe.
This results in not only being able to go to the Netherlands easily, it also has many connections to countries all over Europe. From Amsterdam you can be in Paris in 3 hours, Brussels in 1.5 hours, and London in 4 hours by train.
4. Business Environment
The Netherlands is 2 places higher in the World Friendliest Countries for Business Ranking than Ireland, as well as occupies 2nd place in the Global Innovation Ranking, opposing to Ireland's 10th place. Fostering these high rankings is the political stability and banks which have international expertise and know-how with new non-resident entrepreneurs.
With a population almost 5 times more than in Ireland and with significant number of international expats, Dutch labour market offers much broader choice of candidates with international experience, flexibility and unique skill sets.
5. Dutch Culture
The Netherlands is known for having a very open and friendly business environment. Amsterdam has been voted by the New York Times to be the number one city for to relocate to limiting risks from the BREXIT. Over 90% of the Dutch speak English, schools are ranked among the best in Europe, and the business environment is very tolerant.
All these factors result in the Netherlands being a very attractive country to relocate your business and limit the risks your company might be facing because of the BREXIT.
Interested to relocate your company in a centrally located and tax friendly country?Schedule a call and discuss the opportunities with one of our experts!
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