Foreign Ownership Regulations in the Netherlands

Published on October 1, 2025 and written by Cyril Jarnias

The Netherlands is renowned for its favorable business climate and openness to foreign investment. However, as in any country, there are specific regulations concerning foreign ownership. This article will guide you through the main legal provisions, processes to follow, and opportunities available to foreign investors in the Netherlands.

A Welcoming Legal Framework for Foreign Investors

The Netherlands stands out for its liberal policy regarding foreign investments. The country offers an environment conducive to international business, with few restrictions on foreign ownership. This open approach is reflected in several aspects:

Equal Treatment: Foreign investors generally receive the same treatment as domestic investors. There is no systematic discrimination against foreign companies.

Freedom of Establishment: Foreign entities have the right to create and own businesses in the Netherlands without major restrictions. This freedom applies to most economic sectors.

No Limits on Foreign Ownership: In most cases, there is no cap imposed on the percentage of foreign ownership in Dutch companies.

Investment Protection: The Netherlands has signed numerous bilateral investment treaties, providing additional guarantees to foreign investors.

However, it is important to note that some sectors considered strategic or sensitive may be subject to specific regulations. These areas notably include:

– Telecommunications – Energy (electricity and gas) – Critical infrastructure – Defense and national security

In these sectors, control mechanisms may be implemented to assess the potential impact of foreign investments on national security or public interest.

Approval Process: A Pragmatic Approach

Unlike some countries, the Netherlands does not impose a systematic approval procedure for foreign investments. In most cases, the process of establishing a foreign company is relatively simple and fast. Here are the main steps to follow:

1. Registration with the Chamber of Commerce (KvK) Any company operating in the Netherlands must register with the commercial register. This step can usually be completed online or in person.

2. Obtaining a Tax Identification Number The company must register with the Dutch tax authorities to obtain a tax identification number (BTW-nummer).

3. Opening a Bank Account It is recommended to open a Dutch bank account to facilitate financial transactions.

4. Specific Sectoral Checks In certain regulated sectors, additional permits may be required. For example:

– For the financial sector: approval from the Dutch Central Bank (DNB) or the Authority for the Financial Markets (AFM) – For telecommunications: license from the Authority for Consumers and Markets (ACM)

5. Foreign Investment Screening As of June 1, 2023, the Act on Security Screening of Investments, Mergers and Acquisitions came into effect. This law requires mandatory notification for investments in certain sensitive sectors, including:

– Nuclear energy – Critical infrastructure – Sensitive technologies – Sensitive personal data

It is important to note that this screening mechanism applies not only to non-European investors but also to those from the EU and the Netherlands itself.

Rights and Obligations: What You Need to Know

Once established in the Netherlands, foreign investors enjoy many rights but must also comply with certain obligations. Here is an overview of the main points to remember:

Rights of Foreign Investors

– Equal Treatment: Foreign companies enjoy the same rights and protections as Dutch companies. – Profit Repatriation: There are no restrictions on repatriating profits or dividends to the investor’s home country. – Access to Courts: Foreign investors have full access to the Dutch judicial system to resolve any potential disputes. – Intellectual Property Protection: The Netherlands offers a strong framework for protecting patents, trademarks, and copyrights.

Obligations to Respect

– Tax Compliance: Foreign companies must comply with Dutch tax laws, including payment of corporate tax and VAT. – Financial Reporting: Obligation to maintain accounting records in accordance with Dutch standards and to file annual accounts. – Labor Law: Compliance with employment regulations, including applicable collective bargaining agreements. – Data Protection: Compliance with the General Data Protection Regulation (GDPR) and Dutch privacy laws. – Transparency: Obligation to disclose certain information about the company’s ownership structure, particularly in the context of anti-money laundering efforts.

Specifics for Real Estate Investors

Foreign investors wishing to acquire real estate in the Netherlands also benefit from a favorable framework:

– No restrictions on foreign ownership or occupancy of real estate. – Possibility to purchase land or buildings for commercial or industrial use without special authorization. – Legal protection of property rights for foreign and Dutch nationals.

Practical Tips for a Successful Investment in the Netherlands

To maximize your chances of success as a foreign investor in the Netherlands, here are some key recommendations:

1. Engage Local Experts Hire Dutch legal and tax advisors to guide you through the nuances of the local system. Their expertise can prove invaluable in avoiding pitfalls and optimizing your investment structure.

2. Leverage Tax Incentives The Netherlands offers various tax benefits to attract foreign investment. Inquire about: – The advance tax ruling (ATR) to obtain certainty about your tax situation – The research and development tax credit (WBSO) – Double taxation agreements with many countries

3. Take Advantage of the Innovation Ecosystem The Netherlands is renowned for its innovation-friendly environment. Explore collaboration opportunities with universities, research centers, and local startups.

4. Invest in Human Capital The country has a highly skilled and multilingual workforce. Take advantage of this to recruit local and international talent. The Netherlands also offers simplified procedures for obtaining visas for highly skilled workers.

5. Adopt a Sustainable Approach The Netherlands places great importance on sustainable development. Integrate environmentally and socially responsible practices into your investment strategy to enhance your image and acceptance in the local market.

6. Stay Informed of Regulatory Developments The legal and tax framework may evolve. Ensure you stay updated on potential changes, especially in sensitive areas like foreign investment screening.

7. Cultivate Your Local Network Actively participate in professional events and business associations to develop your network and better understand the Dutch market.

Conclusion: Fertile Ground for Foreign Investors

The Netherlands positions itself as a prime destination for foreign investors, offering a balance between economic openness and a stable regulatory framework. Although some sectors are subject to increased scrutiny, the country generally maintains a favorable approach to international investments.

The key to success lies in thorough preparation, a deep understanding of the local market, and strict compliance with legal and tax obligations. By adopting a strategic approach and leveraging the many advantages offered by the Netherlands, foreign investors can not only thrive in the Dutch market but also use it as a solid base for their European and international expansion.