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Will you wait for

the future to happen,


or take a hand
in shaping it?
Following Brexit, the Netherlands might
be the right location for you.
Why the Netherlands is attractive
to business in 30 facts
Companies established in the Netherlands can benefit from a wide range of European
rules and regulations available only for companies established within the EU.
EY1 can help you map threats and opportunities triggered by the Brexit. We will help you
calibrate your business strategy considering the impact Brexit may have.

Key facts How EY can help


General
1. Connectivity: the Netherlands has excellent internet facilities. The Netherlands is the ideal hub EY can help with:
location, providing excellent connectivity with Europe and other parts of the world through one of Demonstrating the advantages of being located in
the worlds fastest internet connections, according to Akamai global average connection speed the Netherlands compared to other countries.
rankings.
Location and site selection support.
2. Language skills: One of the best scoring European countries in terms of English proficiency. Dutch
schools are ranked the best in Europe. Many international schools in Amsterdam and The Hague. Multicriteria modelling of international locations in terms of costs
and benefits.
3. Quality of life: Amsterdam, with its beautiful historic centre, ranks 11th in Mercers worldwide
quality of life index. Dutch children are claimed to be the happiest children in the world, according
to Unicef. Amsterdam has been a centre of culture and fine arts for many centuries.

4. Cost of living: the Netherlands has a lower cost of living compared to most other major European
countries

5. International centre of commerce: the Netherlands is home to over 8,000 foreign companies.
Amsterdam is a multi-cultural city, buzzing with foreign languages and cultures.

6. Infrastructure: Excellent transportation infrastructure. Amsterdam has one of Europes best


airports, and an excellent rail and road network connecting major European cities, including
Berlin, London, Paris and Frankfurt. Its a short one hour train ride to Brussels, the capital of the
European Union.

People, labour and employment conditions


7. Visa: Fast-Track permits for highly skilled knowledge migrant employees. Advise and assist in application and managing mobility processes.

8. Expat ruling: Tax free allowance for specific foreign employees working in the Netherlands Advise and assist in the application for a 30% facility. EY has a special
(30% facility). agreement with the Dutch tax authorities which generally results in
an easier and quicker application process.

9. Social security rates: Capped at low rates (reducing overall labour costs). R
 eview social security position and prepare salary cost projections
and comparisons. Flexible and tax efficient structuring of bonus
and fringe benefits.

10. L
 abour Law: Good possibilities for flexible hiring of staff. Dismissal law has been adapted to the Review, advise and optimize employment framework adapted
needs of a modern labour market and provides clear guidelines. Dutch labour consultation to the desired level of flexibility. Assistance in (multinational)
model provides for rather harmonious relations between employers and employees. co-determination processes and management of trade union
involvement.

Assess and optimize the bonus scheme. For the financial


markets, there is flexibility to optimize the bonus potential
to 100% of the salary.

Legal
11. C
 orporate Law: the Netherlands has an advanced legal system with a sophisticated corporate Assist in setting up legal entities, draft articles, optimize structures
legal and corporate governance system, and flexible legal forms. and governance models, draft corporate, commercial and
employment contracts.

12. R
 eorganizations: Within the EU, cross border reorganizations (mergers, split ups, spin offs, Explain and advise on the available possibilities for reorganizations
migration etc.) are accepted and harmonized. among entities based in EU member countries.

13. D
 ata Protection: the Netherlands has no requirement to enter into separate agreement(s) Analyse and advise upon your position.
for transferring personal data to other EU countries and it is part of the new EU General
Data protection regulation which offers one uniform comprehensive privacy framework
within the EU.

14. BITS: the Netherlands has an extensive network of bilateral investment treaties (BITS) Explain and advise on the advantages and use of BITS.
that offers foreign investors the highest level of protection and security in many states
across the globe.

1 Legal services are being provided through HVG, a Netherlands law firm associated with EY Tax
Key facts How EY can help
Direct tax
15. F
 rom a tax perspective, the Netherlands is considered one of the most attractive locations in EY can help with:
Europe for HQ, finance and other critical business functions. It levies no withholding taxes on Determine the most tax efficient corporate structure, financial structure
outbound interest and royalty payments and maintains an extensive tax treaty network that and operating model. Assist and advice on the implementation of
provides for reduced withholding tax rates on outbound and inbound dividends, and on interest your structure.
and royalties received.

16. Dutch companies benefit from specific EU advantages, such as: Maximize the benefit of being established within the European
EU Parent Subsidiary Directive: no withholding tax on outbound dividends within the EU. Union, e.g. benefit from EU non-discrimination rules and case law,
EU Interest and royalty directive: No witholding tax imposed on intra EU financing/licensing fundamental freedom of establishment, free movement of people
activities. and capital. Assist in claiming EU tax exemptions.
EU Merger directive: the ability to execute cross border reorganizations within the EU on a tax
neutral basis or minimal tax implications.

17. Favourable participation exemption regime which provides 100% exemption for dividends and Determine the most tax efficient corporate structure,
capital gains from qualifying participations. financial structure and operating model. Assist and advice on
the implementation of your structure.

18. Attractive R&D incentives such as a 5% effective tax rate on net earnings derived from assets to Determine the most tax efficient corporate structure,
which the innovation box applies. financial structure and operating model. Assist and advice on
the implementation of your structure.

19. The Dutch tax authorities have a pro-business attitude which is reflected among others in EY is the leading firm in obtaining Advanced Tax Rulings and
Horizontal Monitoring arrangements, Advance Tax Rulings and Advance Pricing Agreements. Advanced Pricing Agreement with the Dutch Tax Authorities.

Indirect tax
20. As an EU country, the Netherlands benefits from the harmonized EU VAT regime, allowing for Brexit will have significant consequences for UK/EU VAT reporting
0% VAT rated supply of goods and services within the EU. and filing, and will also impact custom duties and import procedures.

21. The Netherlands has optimized cash saving possibilities, for instance by allowing a deferral of  EY can help obtain an EU VAT number and assist in structuring the
payment of import VAT, or by netting off input VAT due upon import against output VAT on the tax efficient supply of goods and services within the EU. Some EU
same tax return. countries have slow refund procedures; in those cases it is worth
considering an alternative intra EU - structure of the sale, so that
there is no cash outlay. Likewise, we will assist in dealing with a
supply of goods and services to and from the UK and other countries
outside the EU, in order to minimize adverse VAT consequences and
prolonged cash outlays. We assist in processing VAT refund requests
in relation to trade with non-EU member countries.

22. VAT registration and compliance: registering for VAT purposes in the Netherlands includes the EU Via this system, EY can assist you with the filing of VAT returns for
VAT registration and entrance to the VAT Information Exchange System (VIES). other EU countries from your EU country of residence (the Netherlands)
under a standardized format; this is currently still restricted to
e-commerce and certain network services but will soon be expanded
to include the supply of goods.

23. Dutch companies may benefit from centralized VAT registration in all EU countries simultaneously
under the EU VAT MOSS rules (Mini One Stop Shop). Similarly, centralized VAT filing under the
EU VAT MOSS rules is allowed for Dutch companies.

24. No VAT registration requirement for intermediaries in triangulation arrangements (A-B-C). The Netherlands as gateway into the EU offers maximum flexibility in
terms of warehousing function (e.g. in case of returned goods or
where a local warehouse in EU customer country does not have the
particular product, products can be exchanged with a central EU
warehouse in the Netherlands, free of VAT).

25. Dutch (and other EU) companies can benefit from various EU Free Trade agreements and from EY can help you establish flexible bonded warehouses, customs
EU customs licenses and authorizations. licenses and authorizations, and determine whether your supply
chain meets preferential origin requirements of the EU.

Regulatory
26. The Dutch regulators aim to promote the efficiency of the financial markets. Assist in EU bank passport and license application processes.

27. FinTechs are eligible for favourable regulatory treatment on the basis of a so called banking Assist in obtaining EU bank passport and licence required for
light regime. The existence of the DNB/AFM innovation hub also accommodates new business Payment Services Providers. Both the light and the full license
initiatives. application processes are fully supported.

Facilitate the end-to-end transition to the new target operating model.

28. P
 roduct Marking: Products marked in the Netherlands comply with the EU CE-marking regime. A
 dvice on and assistance with all regulatory steps.
By affixing the CE-marking to a product, a manufacturer declares that the product meets all the
legal requirements for CE-marking and can be sold throughout the EEA.

29. Sector Permits: certain sectors, e.g. pharmaceuticals, telecommunications and real estate Advice on and assistance with all regulatory steps.
require a variety of permits in order to operate in the EU/the Netherlands. Such permits are
almost entirely EU regulated and if such permits are obtained in the Netherlands these ensure
EU wide validity.

30. Passporting: Financial firms from non-EU countries can benefit from EU passporting rules by Advice on and assistance with all regulatory steps.
setting up a subsidiary in the Netherlands and passport that business throughout the EU without
additional authorization from other EU countries. This applies for example to banking, financial
leasing, money transmission, underwriting securities, portfolio and management advice.
Contact EY | Assurance | Tax | Transactions | Advisory

About EY
Marije van Huis EY is a global leader in assurance, tax, transaction and advisory services.
International Location Advisory Services The insights and quality services we deliver help build trust and confidence in
the capital markets and in economies the world over. We develop outstanding
+31 88 407 20 73
leaders who team to deliver on our promises to all of our stakeholders. In so
marije.van.huis@nl.ey.com doing, we play a critical role in building a better working world for our people,
for our clients and for our communities.

Arnoud Driessen EY refers to the global organization, and may refer to one or more, of the
People Advisory Services member firms of Ernst & Young Global Limited, each of which is a separate
+31 88 407 15 27 Legal entity. Ernst & Young Global Limited, a UK company limited by
guarantee, does not provide services to clients. For more information
Arnoud.driessen@nl.ey.com
about our organization, please visit ey.com.

Legal services are being provided through HVG, the Netherlands law firm
Jan Padberg associated with EY Tax and part of EY Law
Corporate Law
+31 88 407 04 29 2016 EY Netherlands LLP
jan.padberg@hvglaw.nl All Rights Reserved.

ED None
155010210
Suzanne Bos
Employment Law This publication contains information in summary form and is therefore intended for general guidance
only. It is not intended to be a substitute for detailed research or the exercise of professional judgment.
+31 88 407 24 72 Neither EYGM Limited nor any other member of the global EY organization can accept any responsibility
suzanne.bos@hvglaw.nl for loss occasioned to any person acting or refraining from action as a result of any material in this
publication. On any specific matter, reference should be made to the appropriate advisor.

ey.com/nl
Shima Heydari
Indirect Tax FSO
+31 88 407 14 15
shima.heydari@nl.ey.com

Alexander Huiskes
Risk Advisory Services
+31 88 407 16 46
alexander.huiskes@nl.ey.com

Misha Lutje Beerenbroek


Product Regulatory & Compliance
+31 88 407 21 24
misha.lutje.beerenbroek@hvglaw.nl

Dirk Stalenhoef
International Tax Services
+31 88 407 19 77
dirk.stalenhoef@nl.ey.com

If you have any questions or concerns please email


the EY Brexit Desk: brexit@nl.ey.com