The Netherlands Emerges as the Premier Hub for Holding Companies Globally

The Netherlands Emerges as the Premier Hub for Holding Companies Globally
Photo: Unsplash.com

By: Ethan Rogers

Amsterdam – Despite its small size, the Netherlands has established itself as a premier destination for holding companies. According to recent data from BoldData, the country is home to over 527,000 holding companies, the highest concentration in the world. The United States follows with 375,079 holdings, and France ranks third with 240,673. The Netherlands’ strategic tax policies and central location make it an ideal choice for businesses seeking to optimize cross-border operations.

The Netherlands Emerges as the Premier Hub for Holding Companies Globally
Photo Courtesy: Netherlands Emerges / BoldData

Global Firms Capitalize on Dutch Tax Benefits

Renowned for its ‘tax-efficient’ status, the Netherlands attracts a wide range of international corporations and smaller businesses. Notably, companies from the United States, the United Kingdom, and other smaller nations have established a significant presence. Over 2,000 U.S.-owned holding entities operate in the Netherlands. Additionally, Cyprus has experienced a substantial 700% increase in foreign holdings in the Netherlands over the past 15 years, highlighting the global allure of the Dutch tax system.

The Netherlands Emerges as the Premier Hub for Holding Companies Globally
Photo Courtesy: Netherlands Emerges / BoldData

Surge in UK-Owned Holdings in the Netherlands

UK companies have increasingly turned to the Netherlands to reduce tax burdens and maintain business continuity amidst growing tax pressures in the UK. BoldData reports a 320% rise in UK-owned holdings in the Netherlands over the past decade, growing from 320 entities in 2014 to 1,352 in 2024. This shift is largely attributed to the UK’s less favorable tax environment for many companies.

Increasing Tax Pressures in the UK

The recent budget introduced by Chancellor Rachel Reeves includes a £40 billion tax package that significantly raises employers’ national insurance contributions. This change, effective from April, will increase employer contributions to 15%, potentially driving more UK companies to establish holdings in tax-friendly locations like the Netherlands.

Expert Opinions on the Shift

UK campaigners have expressed concerns over the potential impact of this tax policy. Elliot Keck, head of campaigns at the TaxPayers’ Alliance, commented, “Taxpayers will be concerned about companies closing up and leaving. The chancellor’s hike in employer’s national insurance will only drive more wealth creators and businesses into the arms of lower tax countries. Rachel Reeves needs to be supporting businesses, not slamming them.”

About BoldData

BoldData is a leading provider of highly accurate company data, offering a comprehensive database of over 350 million companies worldwide. Our data has supported over 4,000 companies in analytics, research, and CRM.

This report is based on our global company database. Data on holding companies is sourced from chambers of commerce, local commercial registries, and trade registers. The analysis includes active and inactive holdings and mailbox firms, provided they are currently registered with their respective local authorities.

Disclaimer: This content is for informational purposes only and is based on data from BoldData. It does not constitute financial, tax, or legal advice. Consult a qualified professional for personalized guidance. While efforts have been made to ensure accuracy, BoldData and the publishers do not guarantee completeness or suitability. Opinions from external sources are their own and do not reflect BoldData’s views.

 

 

 

Published by Elle G.

(Ambassador)

This article features branded content from a third party. Opinions in this article do not reflect the opinions and beliefs of CEO Weekly.