Investment in the Netherlands
Investment in the Netherlands is considered another method of immigration to the Netherlands. Investment in the Netherlands is possible through the following methods. These methods include:
- Buying property
- Company registration
- Entrepreneurship
- Buying government bonds
- Innovation (Startup)
- Self-sufficiancy
If you intend to invest in the Netherlands through property purchase, you must have sufficient capital. However, unfortunately, this method does not lead to obtaining residence in the Netherlands.
One way for qualified applicants to gain permanent residency in the Netherlands after 5 years with their family is through company registration, requiring a capital of €18,000 to €45,000. Among investment options, the Dutch startup route is faster and more affordable. For free immigration advice, contact Malekpour Institute or leave your questions in the comments for a quick response.
Advantages and Challenges of Investing in the Netherlands
While investing in the Netherlands offers many benefits, it also has drawbacks. High initial capital requirements, complex and lengthy residency procedures, and strict checks on the source of funds can discourage foreign investors. Despite various investment options, these challenges make some hesitate to invest in the Netherlands. Investment in the Netherlands has its own unique advantages, which we will mention below:
- The Netherlands has one of the lowest tax rates in Europe, starting at 20%.
- There is no value-added tax for transactions and financial activities among European Union members.
- The people of the Netherlands express the highest level of agreement regarding tax prevention throughout the world.
- Dutch companies have a strong reputation in international trade and a brilliant track record.
- Over 90% of Dutch people speak English, and for their second language, they often use French and Spanish. This facilitates investment in the Netherlands for foreigners.
- The workforce in the Netherlands is highly educated, ranking third in the world in terms of educational level.
- The business environment in the Netherlands is innovative and highly creative at the international level.
- In addition to providing a stable political and legal environment, the Netherlands warmly welcomes foreign investors and entrepreneurs.
Methods of Investment in the Netherlands
In the Netherlands, golden visa applicants can use various methods for investment. These investments can take the following forms:
- Buying property
- Company registration
- Entrepreneurship
- Buying government bonds
- Innovation (Startup)
- Self-sufficiancy
Investment in the Netherlands through Property Purchase
Buying property in the Netherlands is one of the most profitable ways to invest in this country. However, purchasing property in the Netherlands does not lead to obtaining residency in this country.
The price of properties in the Netherlands varies depending on the city and the type of property, but approximately the price per square meter of a house in the city center is around 5,673.66 Euros and around 3,897.16 Euros outside the city center.
To purchase property in the Netherlands, the following steps are executed:
- Signing the property purchase agreement
- Official confirmation of the property deed
- Applying for a mortgage by the property buyer
- Signing the original contract by the parties to the transaction
- Changing the property name to the buyer’s name
Company Registration in the Netherlands
Company registration in the Netherlands has specific conditions. Through this investment, a person along with their spouse and children under 18 years can obtain residency in the Netherlands. To do this, the person must prove that their business activity is based on a new and effective idea. This proof is provided through a business plan. The business plan is essentially the investment program and economic activity of the proposed company.
Company registration in the Netherlands is carried out in the following three forms:
- Public Joint Stock Company
The minimum capital in this company must be 45,000 Euros.
- Private Joint Stock Company
The minimum capital required to register such a company is 18,000 Euros.
- Opening a Branch
This company is established in such a way that a person opens a branch of their company and business in the Netherlands.
Through company registration in the Netherlands, the main applicant along with their family can achieve permanent residency after 5 years.
Investment in the Netherlands through Entrepreneurship
For investment in the Netherlands through entrepreneurship, there are several pathways and programs you can utilize. Here is a suggested table for investment in the Netherlands through entrepreneurship:
| Program Type | Requirements | Minimum Investment | Residency |
|---|---|---|---|
| Start-up Visa | Innovative and unique business idea, and a recognized Dutch business facilitator | At least €25,000 to start | 1-year residence permit, extendable |
| Self-Employed Visa | Specialized skills in a specific field and ability to establish and run a business | At least €40,000 for initial business costs | Possibility of long-term residency |
Investment in the Netherlands through Purchasing Government Bonds
As you can see throughout this article, there are many methods for investing in the Netherlands, but not all of these methods lead to residency and do not have residency effects. Among the few investment and business methods in the Netherlands that result in obtaining a work permit and employment in the Netherlands is investing in state investment funds through purchasing government bonds.
In this investment, the applicant must first show the source of their capital, and after making the investment, the individual can obtain a 3-year residency with full-time work permission. This three-year residency, if extended for up to 5 years, can lead to permanent residency in the Netherlands.
Investment in the Netherlands through Self-Sufficiency
Self-sufficiency is a common residency method requiring proof of sufficient funds to support oneself without government aid. It involves showing assets like real estate, cash, or high income, but does not lead to a work permit. While some countries allow business or property investment under this route, the Netherlands does not currently offer residency through financial independence. Interested applicants can explore self-sufficient residency options in Austria and France.
Investment in Innovation in the Netherlands
Obtaining residency in the Netherlands through innovation does not require a large investment. Having a new business idea is sufficient. You do not need to have a degree for it, but having relevant work experience with this idea is essential. Below are the main conditions for startup in the Netherlands:
- Have an innovative idea and a scalable product/service
- Work with a certified facilitator in the Netherlands
- Have a comprehensive business plan in English
- Sufficient financial resources (at least 13,000 euros per year)
- Relevant academic degree or work experience in the startup field
If your idea is approved, you will be given one to two years to move to the Netherlands with your family and implement that idea. After 5 years, if you learn the language and participate in exams, you can also apply for permanent residency and Dutch passport.
Golden Visa of the Netherlands
The European Golden Visa is one of the well-known investment visas that leads to obtaining residency in the desired country. Unfortunately, the Netherlands does not officially have a program called Golden Visa similar to some other countries (like Portugal or Spain). However, for individuals looking to invest in the Netherlands, there are options for obtaining residency through investment or starting a business.
Conditions for Investment in the Netherlands
The Netherlands, known for its strategic location, stable economy, and favorable business environment, has become a primary destination for global investors. Before taking any action, you should know what conditions you must meet for investment in this country.
- Legal requirements and business structure
- Financial capacity
- Appropriate business plan
- Minimum investment amount of €1,250,000
- Ability to contribute to the Dutch economy
- Investment in legitimate and reputable companies
Required Documents for Obtaining a Golden Visa in the Netherlands
The request for a golden visa or “Golden Visa” in different countries may have various rules and conditions. However, in general, the documents required for applying for a golden visa include:
- Pay an application fee of approximately €2,000
- A valid passport
- Proof of financial means
- Biometric information
- Certificate of work and business history
- Personal information
- Information regarding the value of the investment
Cost of Investment in the Netherlands
The costs of investment in the Netherlands, as a member of the European Union and one of the advanced economies in the world, can vary and are largely dependent on the type and nature of your investment. Below are some factors that may impact the costs of investing in the Netherlands:
| Investment Method | Minimum Required Capital |
|---|---|
| Real Estate Investment | €200,000 to €300,000 |
| Company Registration Investment | Public Company: €45,000Private Company: Minimum €18,000 |
| Self-Sufficiency Investment | Minimum €1,250,000 |
| Entrepreneurial Investment | €50,000 to €100,000 |
| Bonds or Shares Investment | Minimum €1,250,000 |
Cost of Living in the Netherlands
Here is a table presenting the average cost of living in the Netherlands (monthly in Euros). Costs may vary depending on the city and lifestyle.
| Item | Cost in Amsterdam (€) | Cost in Other Cities (€) |
|---|---|---|
| Rent (1-bedroom apartment, city center) | €1,500 – €2,200 | €900 – €1,500 |
| Rent (1-bedroom apartment, outside center) | €1,200 – €1,800 | €700 – €1,200 |
| Utilities (water, electricity, gas, internet) | €150 – €250 | €120 – €200 |
| Public Transport (monthly pass) | €90 – €120 | €70 – €100 |
| Groceries (monthly, per person) | €250 – €400 | €200 – €350 |
| Restaurant (meal at a mid-range restaurant) | €15 – €25 | €12 – €20 |
| Health Insurance (mandatory, monthly) | €120 – €150 | €110 – €140 |
| Entertainment (cinema, gym, café, etc.) | €100 – €300 | €80 – €250 |
Assistance and Incentives for Investment in the Netherlands
As one of the best investment destinations in Europe, the Netherlands has established numerous incentives and support for foreign investors. These assists include tax exemptions, financing, visa facilities, and government support for investment in key sectors of the economy.
The Dutch government offers attractive tax incentives for foreign investors, including reduced corporate tax for startups, R&D tax benefits (WBSO), and the 30% ruling for skilled foreign workers.
- Financial Support for Investors
Agencies like NFIA and RVO provide grants, low-interest loans, and credit guarantees. Investors can also access funding through the Innovation Fund NL and Dutch Good Growth Fund (DGGF).
- Visa & Residency for Investors
Foreign investors can apply for a Dutch investor visa by investing at least €1.25 million in approved funds or innovative companies. Startup visas are available for entrepreneurs with innovative business plans and support from recognized facilitators. After 5 years, permanent residency is possible.
- Strong Infrastructure & Business Support
The Netherlands offers world-class logistics, major ports, and digital networks. Programs like Holland Trade and Invest support export growth, R&D, and digital innovation.
- Priority Sectors for Investment
The government promotes investment in clean energy, AI, biotechnology, smart mobility, and sustainable agriculture. Initiatives like the Green Growth Strategy offer tax breaks and funding for green technologies.
Obtaining a Visa for Investment in the Netherlands
The investment visa or golden visa of the Netherlands is a type of residence permit called MVV that allows foreign individuals to enter the territory of the Netherlands for certain investment programs.
In most cases, this investment must be substantial (at least 1,250,000 Euros) or an innovative business that is intended to contribute to the Dutch economy and job creation in the country. The MVV permit is valid for three months and must be applied for through the Dutch embassy.
Obtaining Residency through Investment in the Netherlands
To immigrate and obtain residency in the Netherlands for citizenship, there are six main methods. These six methods are birth, marriage, asylum, working in the Netherlands, studying in the Netherlands, and investing in the Netherlands.
After providing the necessary primary conditions and obtaining the required approvals from the relevant governmental bodies for investment in the Netherlands, if the desired business remains active in the Netherlands for 5 years and generates circulation and employment, the investor can achieve permanent residency in the Netherlands.
Best Cities in the Netherlands for Investment
When considering investment in the Netherlands, one of the important decisions is choosing the right city. Each Dutch city has its own unique features, economic strengths, and investment potential. The best cities in the Netherlands for investment are as follows:
- Amsterdam
As the capital and a global financial hub, Amsterdam offers a thriving business ecosystem, strong financial sector, and vibrant tech scene. It provides access to top talent, excellent infrastructure, and high quality of life—ideal for international investors.
- Rotterdam
Home to Europe’s largest port, Rotterdam is a strategic choice for logistics, shipping, and trade-related investments. The city promotes innovation through its focus on sustainability, renewable energy, and environmental technology.
- Utrecht
Utrecht is emerging as a leading center for technology, healthcare, and life sciences. Its central location and collaboration with nearby knowledge institutions make it attractive for startups and tech-driven businesses.
- The Hague
As the seat of the Dutch government and numerous international organizations, The Hague offers unique investment opportunities in diplomacy, international law, and cybersecurity. It’s where innovation meets diplomacy.
- Delft
Delft specializes in engineering, robotics, and aerospace. Its close ties to Delft University of Technology foster a strong culture of innovation, making it a top destination for tech and R&D investments.
Investment Standards in the Netherlands
The investment standards in the Netherlands depend on various factors including business laws, taxes, minimum required capital, investment visas, and economic opportunities. Below we outline the most important investment standards in this country:
- Minimum capital
The minimum capital for investing in the Netherlands varies by business type. For a private limited company (BV), the legal minimum is just €1, but in practice, an initial capital of €1,000 to €5,000 is recommended. For a public limited company (NV), the legal minimum is €45,000.
For investment in startups or innovative businesses under the investor visa program, a minimum of €1.25 million must be invested in government-approved funds.
- Taxes:
Here is a table regarding tax rates in the Netherlands:
| Tax Type | Tax Rate | Description |
|---|---|---|
| Corporate Income Tax (up to €200,000) | 19% | For companies with annual income below €200,000. |
| Corporate Income Tax (above €200,000) | 25.8% | For companies with annual income exceeding €200,000. |
| Value Added Tax (VAT) – Standard Rate | 21% | Applied to general goods and services. |
| Value Added Tax (VAT) – Reduced Rate | 9% | Applied to essential goods and services such as food, medicine, and books. |
| Tax Exemptions | Varies | Includes tax incentives for R&D and innovation sectors. |
Residency Through Investment in the Netherlands
Investors can obtain a Dutch residence permit by investing at least €1.25 million in official government-approved funds or innovative Dutch companies. The capital must come from legal sources and contribute positively to the Dutch economy. After 5 years of successful investment and economic activity, applicants may apply for permanent residency.
Eligible Investment Sectors
The Netherlands offers multiple investment options, including:
- Company formation (BV – private limited, NV – public limited, VOF – general partnership)
- Stock market investments in Dutch companies
- Real estate investment
- Government-approved investment funds
- High-potential sectors like technology, renewable energy, and innovation
Investment Risks
- Strict tax and regulatory requirements
- High competition in key industries
- Need for transparent accounting and financial management
- High cost of living and business operations in major cities like Amsterdam and Rotterdam
Economic Indicators Influencing Investment in the Netherlands
In this part, we will examine the indicators influencing investment in the Netherlands. These indicators vary widely, but the most important ones are the unemployment rate, tax rates, and gross domestic product. Positive values in these indicators have a significant impact on attracting investment and investors to the industrial and economic market of the Netherlands, as they indicate the economic growth of the Netherlands.
The unemployment rate in the Netherlands has fluctuated in recent years, but this rate has stabilized over the past ten years, with the rate dropping below 4 percent in 2018, indicating a dynamic job market and a thriving economy.
One of the main factors and indicators indicating the economic growth of a country is the gross domestic product. According to past statistics, we can see that gross domestic product growth in the Netherlands is steadily increasing year by year.
Frequent Questions regarding Investment in the Netherlands
- What is the best way to invest in the Netherlands?
One of the best methods of investment in the Netherlands is presenting a business plan for company registration.
- Can residency be obtained by buying property in the Netherlands?
No.
- Can residency in the Netherlands be obtained through investment in franchises?
No. To invest in franchises, you must first obtain residency through other methods.
- Can residency be obtained through investment for a Dutch passport?
Directly, a Dutch passport cannot be obtained through investment, but after several years of living in the Netherlands, one can apply for a passport from this country.
Conclusion:
Investment in the Netherlands offers a path to residency and citizenship, with options like company registration and startups. As a modern, immigrant-friendly country with low unemployment and an aging population, the Netherlands is an attractive destination. However, due to the complexity of investment immigration, studying in the Netherlands is often a more accessible option. For more details or free advice, contact Malekpour Institute or leave your questions in the comments section below.
