Netherlands Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in netherlands, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

  • Openness to, and Restrictions upon, Foreign Investment,

  • Investment and Taxation Treaties,

  • Legal Regime,

  • Industrial Policies,

  • Protection of Property Rights,

  • Financial Sector,

  • State-owned Enterprises,

  • Corruption,

  • Labor Policies and Practices,

  • Political and Security Environment, and

  • U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website

 

Executive Summary - The Netherlands

The Netherlands consistently ranks among the world’s most competitive industrialized economies and is the 18th largest economy in the world and the 5th largest in the European Monetary Union (the Eurozone). It offers an attractive business and investment climate and remains a welcoming location for business investment from the United States and elsewhere.

The 2024 IMD Competitive Index ranked the Netherlands as the 9th most competitive economy in the world. The Netherlands’ high ranking is attributed to its outstanding performance in areas conducive to innovation and sustainable prosperity, driven by investments in innovation infrastructure, access to talent, a competitive labor market, and a robust financial network, along with strong international trade links. The Netherlands also ranked 8th in the 2024 Global Innovation Index from the World Intellectual Property Organization, 6th in the 2024 United Nations’ World Happiness Report, and 1st in the 2023 Education First English Proficiency Index.

Investors in the Netherlands take advantage of its highly competitive logistics, anchored by the largest seaport and 4th largest airport in Europe. In telecommunications, the Netherlands has one of the highest levels of internet penetration in the European Union (EU) at approximately 99% and hosts one of the largest data transport hubs in the world, the Amsterdam Internet Exchange.

The Netherlands is among the largest recipients and sources of foreign direct investment (FDI) in the world and one of the largest historical recipients of direct investment from the United States. This can be attributed to the Netherlands’ competitive economy, historically business-friendly tax climate, and many investment treaties containing investor protections. The Dutch economy has significant foreign direct investment in a wide range of sectors including logistics, information technology, and manufacturing. Dutch tax policy continues to evolve in response to EU attempts to harmonize tax policy across member states.

The Dutch economy is forecast to grow by between 1.3% and 1.6% in 2025, and by 1.2% to 1.5% in 2026, reflecting a steady but moderate recovery from recent economic challenges. This growth is primarily driven by increased private consumption, supported by rising real wages, easing inflation, and favorable financial conditions. Public investment and gradually improving business confidence are also expected to contribute to economic momentum. While the Netherlands’ growth rates are modest, they align with the broader European trend of moderate recovery. However, global geopolitical uncertainties and inflationary pressures could impact these projections.

The Dutch government deficit is projected to widen, reaching 2.1% of GDP in 2025 and 2.7% in 2026, driven by higher public spending on healthcare, social security, and defense. Unemployment is anticipated to rise marginally, from 3.7% in 2024 to 3.9% in 2025 and 4.0% in 2026, as labor force growth slightly outpaces job creation. The labor market remains relatively tight, with vacancies still exceeding the number of unemployed individuals in many sectors. A significant share (around 48%) of the workforce is employed part-time.

Opportunities

Aerospace Sector

The Dutch aerospace sector is internationally oriented, with strengths in aircraft maintenance, airport innovation, and infrastructure. Schiphol Airport stands as a central hub for civil aviation in Europe, and the country excels in R&D across emerging aerospace technologies.

Key Opportunities:

  • Civil Drones: Rapid growth in applications such as offshore wind farm inspections, port logistics, agriculture, and (cyber)security. The Netherlands’ favorable regulatory environment and leadership in drone autonomy offer fertile ground for unmanned aerial systems (UAS) solutions and services.
     
  • Sustainable Aviation: As a global frontrunner in sustainable aviation fuels (SAF), the Netherlands offers investment opportunities in SAF production, logistics, and hybrid propulsion systems. Synergies with drone technologies and green aviation are growing.
     
  • R&D Collaboration: Institutions like Delft University of Technology and Unmanned Valley provide platforms for joint development in aerospace and UAV systems, supported by proximity to European Space Agency’s ESTEC and the Netherlands Space Campus.

Defense Sector

Defense spending in the Netherlands reached $23.3 billion in 2024, with consistent alignment toward NATO goals and a growing openness to U.S. defense products. The Dutch Ministry of Defense is pursuing large-scale modernization across air, land, sea, and cyber domains.

Key Opportunities:

  • Navy: Procurement of ASW frigates, NH90 helicopters, unmanned underwater vehicles, and multifunctional support vessels.
  • Army: Expansion of armored capabilities including Boxer vehicles, modernized CV-90s, and introduction of main battle tanks.
  • Air Force: Fleet expansion of F-35s, MQ-9 Reapers, and tactical airlift (C-130 replacement), along with investment in missile defense and unmanned combat aircraft.
  • Cyber & Space: Growth of the Defense Cyber Command and the Defense Space Security Centre supports dual-use tech and joint NATO initiatives.

Cybersecurity

As a digital gateway to Europe, the Netherlands hosts institutions like Europol’s EC3, NATO’s NCI Agency, and The Hague Security Delta. Cybersecurity demand has surged in response to geopolitical threats, digitalization, and new EU regulations.

Key Opportunities:

  • Critical Infrastructure Protection: Securing energy, ports, healthcare, and telecom sectors against cyber threats.
  • Advanced Threat Detection: Solutions targeting state-sponsored cyber activities, disinformation, and espionage.
  • Compliance Tools: Platforms supporting GDPR and NIS2 compliance, risk management, and secure communications.
  • Public-Private Collaboration: Participation in national cyber exercises like ISIDOOR IV and partnerships through The Hague Security Delta.

Energy Sector

The Dutch energy transition is a national priority, underpinned by government commitments to reduce carbon emissions by 55% by 2030. U.S. companies can tap into substantial opportunities as the Netherlands diversifies its energy portfolio.

Key Opportunities:

  • Nuclear Expansion: Plans to build four new nuclear plants by 2040 open doors for technology, construction, and safety providers.
  • LNG infrastructure: Continued investment in LNG terminals and storage imports to secure energy independence from Russia including growing demand for LNG imports from the US.
  • Renewables & Storage: Offshore wind, solar integration, and battery energy storage systems (BESS) present growing needs for U.S. clean tech.
  • Sustainable Logistics: Green aviation fuels and hybrid logistics systems align with the country’s broader decarbonization goals.

Information & Communication Technology (ICT)

The Netherlands boasts a tech-savvy population, advanced infrastructure, and strong government support for digitalization. With over $80 billion in annual turnover, the Dutch ICT sector is the fourth-largest VC market in Europe.

Key Opportunities:

  • AI & Data Technologies: Rapid growth in artificial intelligence, data management, and storage solutions, supported by the NL AI Coalition.
  • Cloud & Cybersecurity Tools: As remote work increases, demand for endpoint security, managed services, and IAM solutions continues to rise.
  • Enterprise Solutions: CRM, ERP, and content management systems remain high-growth areas.
  • Digital Workforce Development: Significant labor shortages in ICT open opportunities for training services, automation, and outsourcing.

Conclusion

The Netherlands presents a highly strategic entry point into Europe across several advanced technology sectors. Strong transatlantic ties, robust digital infrastructure, forward-leaning regulatory policies, and a skilled, English-proficient workforce position the country as a premier location for U.S. firms. Whether through direct investment, partnerships, or research collaborations, significant opportunities exist in aerospace innovation, defense modernization, cyber resilience, clean energy infrastructure, and digital technology solutions.

To access the ICS, visit the U.S. Department of State Investment Climate Statement.

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