KOTRA and Ministry of Trade, Industry and Energy Publish 'Netherlands Investment Practical Guide'

Netherlands Business Environment, Corporate Establishment, Labor, and Tax Management

KOTRA has published the Netherlands Investment Practical Guide in collaboration with the government. The guide covers the business environment and tax management information of the Netherlands, a European logistics hub and one of South Korea's top five trading partners, and is expected to be helpful for companies entering the local market.

Cover of the '2024 Netherlands Investment Practical Guide' published by KOTRA in collaboration with the Ministry of Trade, Industry and Energy. [Photo by KOTRA]

KOTRA announced on the 1st that it has published the '2024 Netherlands Investment Practical Guide' together with the Ministry of Trade, Industry and Energy.

The Netherlands is located in the center of Europe and serves as a logistics hub. Korean companies also use the Netherlands as a base for entering the European market. The Port of Rotterdam, the largest port in Europe, handled 13.44 million TEUs last year (1 TEU equals the size of one 6-meter container), ranking first in Europe. It also has inland and short-sea shipping systems within Europe. The country boasts a high English proficiency rate and a business-friendly environment. Advanced industries such as information technology (IT), life sciences, and energy are well developed, offering potential synergies through technological cooperation with Korean companies.

The report includes essential information for practitioners entering Europe, such as the business environment in the Netherlands and Europe, corporate establishment, customs clearance, and human resources and labor management strategies. It also contains detailed application standards and various cases regarding the Korea-European Union (EU) Free Trade Agreement (FTA), the EU Carbon Border Adjustment Mechanism (CBAM), and regulations related to organic products, which should be checked when entering Europe via the Netherlands.

In particular, the guide explains in detail the systems related to expanding investment attraction in the Netherlands. It includes detailed information on the 'Netherlands Innovation Enterprise Support System,' which provides withholding tax credits for research and development (R&D) personnel, the 'VAT Payment Deferral System' that allows deferral of VAT payments until the filing deadline, the 30% tax exemption system for foreign workers, and the 'Authorized Economic Operator (AEO) system' for simplifying customs procedures.

Kim Hyun-chul, head of KOTRA's Europe Regional Headquarters, said, "The Netherlands was the top European country for foreign direct investment (FDI) attraction as of the first quarter of this year, following last year, ranking second worldwide after the United States and is South Korea's fifth-largest trading partner. We hope this guidebook will serve as a useful compass for Korean companies investing in the Netherlands."

The report will be available for download in PDF format from June 3 on the Overseas Market News section of the KOTRA website.