2023 Investment Climate Statements: Netherlands

Policies Towards Foreign Direct Investment

In 2021, the Netherlands was the 17th largest economy in the world and is the fifth largest economy in the European Union with a gross domestic product (GDP) of over $1 trillion, according to the World Bank. The Netherlands consistently ranks among the world’s most competitive industrialized economies in global rankings that measure competitiveness, innovation, and access to infrastructure. According to the OECD and the International Monetary Fund (IMF), in 2021 the Netherlands was the second largest source and recipient for foreign direct investment (FDI) in the world, although the Netherlands was not the ultimate destination for the majority of this investment.

The government of the Netherlands maintains liberal policies toward FDI, has established itself as a platform for third-country investment with some 145 investment agreements in force, and adheres to the Organization for Economic Cooperation and Development (OECD) Codes of Liberalization and Declaration on International Investment, including a National Treatment commitment and adherence to relevant guidelines.

According to Eurostat, the Netherlands accounted for 27 percent of the EU’s inbound FDI stocks in 2021. The Netherlands has become a key export platform and pan-regional distribution hub for U.S. firms. Roughly 60 percent of total U.S. foreign-affiliate sales in the Netherlands are exports, with the bulk of them going to other EU members. The nearly 3,000 U.S. owned corporations represent more than 20 percent of all foreign owned firms in the Netherlands and they create more than 240,000 jobs. Foreign owned firms operate predominantly in business services, wholesale, and retail sectors.

Although policy makers feared Brexit would have an extremely negative impact on the Dutch economy, the Netherlands is benefitting from companies exiting the United Kingdom in search of an anchor location inside the EU Single Market. The Netherlands Foreign Investment Agency (NFIA) reported in 2021 that 316 companies have chosen to relocate to the Netherlands since the referendum in 2016. The companies are mainly from the health, creative industry, financial services, and logistics sectors. The Dutch Authority for the Financial Markets (AFM) expects Amsterdam to emerge as a main post-Brexit financial trading center in Europe for automated trading platforms and other ‘fintech’ firms, as more of these companies cross the Channel to keep their European trading within the confines of EU regulatory oversight.

Dutch tax authorities provide a high degree of customer service to foreign investors, seeking to provide transparent, precise tax guidance that makes long-term tax obligations more predictable. Advance Tax Rulings (ATR) and Advance Pricing Agreements (APA) are guarantees given by local tax inspectors regarding long-term tax commitments for a particular acquisition or greenfield investment. Dutch tax policy continues to evolve as the EU seeks to harmonize tax measures across member states. A more detailed description of Dutch tax policy for foreign investors can be found at https://investinholland.com/why-invest/incentives-taxes/ . Dutch corporations and branches of foreign corporations are currently subject to a corporate tax rate of 25 percent on taxable profits, which puts the Netherlands in the middle third among EU countries’ corporate tax rates and below the tax rates of its larger neighbors. Corporate income tax rates  in the Netherlands are currently 15 percent for the first €395,000 of taxable profits and 25.8 percent for taxable profits exceeding €395,000.

Dutch corporate taxation generally allows for exemption of dividends and capital gains derived from a foreign subsidiary. Surveys of the corporate tax structure of EU member states note that both the corporate tax rate and the effective corporate tax rate in the Netherlands are around the EU average. Nevertheless, the Dutch corporate tax structure ranks among the most competitive in Europe considering other beneficial measures such as the possibility for the tax authorities to provide corporations with clarity on future treatment of taxes via “advance” rulings and agreements such as ATR and/or APA. The Netherlands also has no branch profit tax and does not levy a withholding tax on interest and royalties.

Maintaining an investment-friendly reputation is a high priority for the Dutch government, which provides public information and institutional assistance to prospective investors through the Netherlands Foreign Investment Agency (NFIA) ( https://investinholland.com/ ). Historically, over a third of all “greenfield” FDI projects that NFIA attracts to the Netherlands originate from U.S. companies. Additionally, the Netherlands’ business gateway at https://business.gov.nl/  – maintained by the Dutch government – provides information on regulations, taxes, and investment incentives that apply to foreign investors in the Netherlands and clear guidance on establishing a business in the Netherlands. The NFIA maintains five regional offices in the United States (Washington, DC; Atlanta; Chicago; New York City; and San Francisco). The American Chamber of Commerce in the Netherlands ( https://www.amcham.nl/ ) promotes U.S. business interests in the Netherlands.

Limits on Foreign Control and Right to Private Ownership and Establishment

With few exceptions, the Netherlands does not discriminate between foreign and domestic nationals in the establishment and operation of private companies. The government has divested its complete ownership of many public utilities, but in a number of strategic sectors, private investment – including foreign investment – may be subject to limitations or conditions. These include transportation, energy, defense and security, finance, postal services, public broadcasting, and the media.

Air transport is governed by EU regulation and subject to the U.S.-EU Air Transport Agreement. U.S. nationals can invest in Dutch/European carriers as long as the airline remains majority-owned by EU governments or nationals from EU member states. Additionally, the EU and its member states reserve the right to limit U.S. investment in the voting equity of an EU airline on a reciprocal basis that the United States allows for foreign nationals in U.S. carriers.

Other Investment Policy Reviews

The Netherlands has not recently undergone an investment policy review by the OECD, World Trade Organization (WTO), or UNCTAD.

Business Facilitation

All companies must register with the Netherlands’ Chamber of Commerce and apply for a fiscal number with the tax administration, which allows expedited registration for small- and medium-sized enterprises (SMEs) with fewer than 50 employees: https://www.kvk.nl/english/registration/foreign-company-registration/ 

The Netherlands’ business gateway at https://business.gov.nl/  – maintained by the Dutch government – provides a general checklist for starting a business in the Netherlands: https://business.gov.nl/starting-your-business/checklists-for-starting-a-business/how-to-start-a-business-in-the-netherlands-a-checklist/ .

The Dutch American Friendship Treaty (DAFT) from 1956 gives U.S. citizens preferential treatment to operate a business in the Netherlands, providing ease of establishment that most other non-EU nationals do not enjoy. U.S. entrepreneurs applying under the DAFT do not need to satisfy a strict, points-based test and do not have to meet pre-conditions related to providing an innovative product. U.S. entrepreneurs setting up a sole proprietorship only have to register with the Chamber of Commerce and demonstrate a minimum investment of €4,500 euros. DAFT entrepreneurs receive a two-year residence permit, with the possibility of renewal for five subsequent years.

Outward Investment

In order to sustain the top ten ranking of the Netherlands among the world’s largest exporting nations, the Minister for International Trade and Development Cooperation within the Ministry for Foreign Affairs coordinates with the government and private sector trade promotion agencies in setting an annual ‘overseas trade mission’ agenda. The Netherlands Enterprise Agency ( https://english.rvo.nl/) has the lead in organizing a custom-tailored and topical format of trade missions to accompany state visits and other official delegations abroad. Participation in these missions is open to any enterprise established in the Netherlands. As of March 2023, the Netherlands has not implemented an outbound investment screening mechanism.

Transparency of the Regulatory System

Dutch commercial laws and regulations accord with international legal practices and standards; they apply equally to foreign and Dutch companies. The rules on acquisition, mergers, takeovers, and reinvestment are nondiscriminatory. The Social Economic Council (SER) – an official advisory body consisting of employers’ representatives, labor representatives, and government appointed independent experts – administers Dutch mergers and acquisitions rules. The SER’s rules serve to protect the interests of stakeholders and employees. They include requirements for the timely announcement of mergers and acquisitions (M&A) and for discussions with trade unions.

As an EU member and Eurozone country, the Netherlands is firmly integrated in the European regulatory system, with national and European institutions exercising authority over specific markets, industries, consumer rights, and competition behavior of individual firms.

Financial markets are regulated in an interconnected EU and national system of prudential and behavioral oversight. The domestic regulators are the Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Market (AFM). Their EU counterparts are the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA).

The Dutch Civil Code requires boards’ statements of large companies to include non-financial performance indicators in their annual report. EU law is in effect in the Netherlands. Companies often voluntarily disclose ESG-related issues and refer to the Global Reporting Initiative’s (GRI’s) Sustainability Reporting Guidelines and the Task Force on Climate-related Financial Disclosures recommendations on its website. Some sectors such as the pension sector have committed to the 2018 Covenant on International Socially Responsible Investing (IMVB). In December 2021, the Netherlands became the latest European government to announce plans to introduce mandatory human rights and environmental due diligence (HREDD) legislation at a national level should the EU continue to delay an introduction of mandatory HREDD legislation. As of March 2023, the bill remains in the proposal stage, with the most recent amendments to its language being made January 26, 2023. Under the proposed legislation, companies that meet two of three threshold conditions (a balance sheet of at least €20 million, a net turnover of at least €40 million, and an average employee count of 250 or more) would be required to implement robust due diligence policies. If implemented, the bill would come into effect July 1, 2024, phasing in over a 12-month period.

Traditionally, public consultation in drafting new laws is achieved by invitation of various civil society bodies, trade associations, and organizations of stakeholders. In addition, the SER has a formal mandate to provide the government with advice, both solicited and of its own accord. Recently, the SER has provided the government with advice on emissions reduction of greenhouse gases, energy transition, and pension reforms. New laws and regulations are subject to legal review by the Council of State and must be approved by the Second and First Chambers of Parliament. The World Bank scores the Netherlands at 4.75 out of 5 on its Global Indicators of Regulatory Governance which assesses transparency around proposed regulations and access to enacted laws. All proposed regulations are published publicly, including on both a unified website the website of the relevant ministry or regulator.

International Regulatory Considerations

The Netherlands is a member of the WTO and does not maintain any measures that are inconsistent with obligations under Trade Related Investment Measures (TRIMs).

Legal System and Judicial Independence

Dutch contract law is based on the principle of party autonomy and full freedom of contract. Signing parties are free to draft an agreement in any form and any language, based on the legal system of their choice. Dutch corporate law provides for a legal and fiscal framework that is designed to be flexible. This element of the investment climate makes the Netherlands especially attractive to foreign investors.

The Dutch civil court system has a chamber dedicated to business disputes, called the Enterprise Chamber. The Enterprise Chamber includes judges who are experts in various commercial fields. They resolve a wide range of corporate disputes, from corporate governance disputes to high-profile shareholder conflicts over mergers or hostile take-overs.

Since 2019, the Enterprise Chamber houses an English-language commercial court. The Netherlands Commercial Court (NCC) and its appellate chamber (NCCA) offer parties the opportunity to litigate in English and will provide judgments in English. Both the NCC and NCCA will focus primarily on major international commercial cases. See also: https://www.rechtspraak.nl/English/NCC/Pages/default.aspx 

Laws and Regulations on Foreign Direct Investment

The Dutch government has demonstrated a growing concern with the protection of its open, market-based economy against foreign state malign activity, especially related to industrial espionage and intellectual property theft. In May 2020, the long-awaited investment screening law in the telecommunications sector came into force. In December 2020, the law on establishing a framework for investment screening for critical infrastructure and technology came into force, aimed at protecting Dutch national security.

The Netherlands interpretation of the EU Foreign Direct Investment Screening Mechanism (VIFO) came into force 2022. Under VIFO, companies working in Dutch critical infrastructure and technology sectors are required to self-report for review transactions that result in a change in control or a transfer of ownership to the Ministry of Economic Affairs and Climate Policy’s (EZK’s) Investment Screening Bureau (BTI). A change of ownership is considered significant enough to warrant a report when a transaction affects 10 or more percent of company shares. The board is also required to report a transaction it feels results in a material change in “control” over the company. The critical technoloy sectors are loosely defined as comprising all technologies listed on the EU’s dual-use technology (EU 2021/821) and common military technology (2008/944/CFSP) lists. The Netherlands has added and excluded several technologies based on the results of an ongoing consultation process . The BTI can block transactions in instances where its review process indicates a transaction poses a threat to the Netherlands’ national security. In cases where a company fails to report a transaction, VIFO allows BTI to fine that company for noncompliance. Unreported transactions BTI determines pose a threat to national security can be blocked retroactively.

As of March 2023, there is no requirement for Dutch nationals to have an equity stake in a Dutch registered company.

Competition and Antitrust Laws

Structural and regulatory reforms are an integral part of Dutch economic policy. Laws are routinely developed for stimulating market forces, liberalization, deregulation, and tightening competition policy.

As an EU and Eurozone member, the Netherlands is firmly integrated in the European regulatory system with national and European institutions exercising authority over specific markets, industries, consumer rights, and competition behavior of individual firms.

The Authority for Consumers and Markets (ACM) provides regulatory oversight in three key areas: consumer protection, post and telecommunications, and market competition.

Expropriation and Compensation

The Netherlands maintains strong protection on all types of property, including private and intellectual property rights, and the right of citizens to own and use property. Expropriation of corporate assets or the nationalization of industry requires a special act of Parliament, as demonstrated in the nationalization of ABN AMRO during the 2008 financial crisis. The government returned it to public shareholding through a 2016 IPO. In the event of expropriation, the Dutch government follows customary international law, providing prompt, adequate, and effective compensation, as well as ample process for legal recourse.

The U.S. Mission to the Netherlands is unaware of any recent expropriation claims involving the Dutch government and a U.S. or other foreign-owned company.

Dispute Settlement

ICSID Convention and New York Convention

As a member of the International Center for the Settlement of Investment Disputes (ICSID), the Netherlands accepts binding arbitration between foreign investors and the state. The Netherlands is one of the initial signatories of the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards (UNCITRAL) and permits local enforcement of arbitration judgments decided in other signatory countries.

The Hague is the seat of the Permanent Court of Arbitration (PCA), an intergovernmental organization that is not a court, but like the ICSID, is a facilitator of independent arbitral tribunals to resolve conflicts between PCA member states, including the United States.

Investor-State Dispute Settlement

The U.S. Mission to the Netherlands is not aware of any U.S. company raising an investment dispute with the Netherlands over the last 10 years. According to the UNCTAD ISDS navigator database ( https://investmentpolicy.unctad.org/investment-dispute-settlement/country/148/netherlands/investor), the Netherlands is not involved in any investor-state dispute settlement proceedings with foreign investors.

International Commercial Arbitration and Foreign Courts

The Netherlands has maintained a Treaty of Friendship, Commerce, and Navigation with the United States since 1956 that provides for national treatment and free entry for foreign investors, with certain exceptions. The U.S. Mission to the Netherlands is not aware of any U.S. company raising an investment dispute with the Netherlands over the last 10 years.

Bankruptcy Regulations

Dutch bankruptcy law is governed by the Dutch Bankruptcy Code, which applies both to individuals and companies. The code covers three separate legal proceedings: 1) bankruptcy, which has a goal of liquidating the company’s assets; 2) receivership, aimed at reaching an agreement between the creditors and the company; and 3) debt restructuring, which is only available to individuals.

Investment Incentives

General requirements to qualify for investment subsidy schemes apply equally to domestic and foreign investors. Industry-specific, targeted investment incentives have long been a tool of Dutch economic policy to facilitate economic restructuring and to promote economic priorities. Such subsidies and incentives are spelled out in detailed regulations. Subsidies are in the form of tax credits disbursed through corporate tax rebates or direct cash payments if there is no tax liability. For an overview of government subsidies and investment programs, see: http://english.rvo.nl/subsidies-programmes .

FDI tends to be concentrated in growth sectors including information and communications technology (ICT), biotechnology, medical technology, electronic components, and machinery and equipment. Investment projects are predominantly in value-added logistics, machinery and equipment, and food.

Since 2010, the government shifted from traditional industrial support policies to a comprehensive approach to public/private financing agreements in areas where investment is deemed of strategic value. Government, academia, and industry work together to determine recipient sectors for co-financed (public and private) R&D. The government’s industrial policy focuses on nine “Top Sectors”: creative industries, logistics, horticulture, agriculture and food, life sciences, energy, water, chemical industry, and high tech. (For more information, see https://www.government.nl/topics/enterprise-and-innovation/contents/encouraging-innovation .)

Foreign Trade Zones/Free Ports/Trade Facilitation

The Netherlands has no free trade zones (FTZs) or free ports where commodities can be processed or reprocessed tax-free. However, FTZs exist for bonded storage, cargo consolidation, and reconfiguration of non-EU goods. This reflects the key role that transport, transit, logistics, and distribution play in the Dutch economy. Dutch Customs oversee a large number of customs warehouses, free warehouses, and free zones along many of the Netherlands’ trade routes and entry points.

Schiphol Airport handles around 1.7 million tons of goods per year for distribution, making it the third largest cargo airport in Europe. In 2021, a relaxation of COVID-19 measures and rebound in global trade activity combined to boost air freight volumes in cargo operations. Specific parts of Schiphol are designated customs-free zones. The Port of Rotterdam is Europe’s largest seaport by volume, handling over 37 percent of all cargo shipping on Europe’s Le Havre-Hamburg coastline and processing nearly 470 million tons of goods and handling a record 15.3 million twenty-foot equivalent unit (TEU) containers in 2021. The Port of Rotterdam’s throughput in 2021 matched the pre-pandemic level of 2019 and rose by over seven percent compared with 2020. In the third quarter of 2022, The Port of Rotterdam registered a 0.3 percent increase in traffic relative to 2021. Many agents operate customs warehouses under varying customs regimes on the premises of The Port of Rotterdam.

Performance and Data Localization Requirements

There are no trade-related investment performance requirements in the Netherlands and no requirements for employment of local capital or managerial personnel.

The Dutch government does not follow a “forced localization” policy and does not require foreign information technology (IT) providers to turn over source code or provide access to surveillance. The Dutch Data Protection Authority (DPA) monitors and enforces Dutch legislation on the protection of personal data ( https://autoriteitpersoonsgegevens.nl/en ). The Dutch DPA is active in the EU’s Article 29 Working Party, the collective of EU national DPAs. The primary law on protection of personal data in the Netherlands is the Dutch law implementing EU directive 95/46/EC. The European General Data Protection Regulation (GDPR), which is directly applicable in member states, entered into force May 25, 2018, as part of the EU’s comprehensive reform on data protection. The Dutch DPA recognized U.S. firms that registered and self-certified with the U.S.-EU Safe Harbor program, which began in 2000, and focused on safe transfer of personal data between the EU and the United States.

On July 12, 2016, the European Commission issued an adequacy decision on the EU-U.S. Privacy Shield framework which replaced the Safe Harbor program, providing a legal mechanism for companies to transfer personal data from the EU to the United States. Although the Dutch government strongly supported Privacy Shield, a 2020 verdict of the European Court of Justice declared the Privacy Shield framework inadequate for the protection of personal data as it found U.S. intelligences services have overly broad powers of access. In March 2022, the United States and European Union announced a political agreement, following over a year of negotiations, on a new Trans-Atlantic Data Privacy Framework to replace the invalidated Privacy Shield instrument. The new framework was ratified by Executive Order in the United States October 7, 2022. It will enter into force in the EU through a series of legal adoptions .

Real Property

The Netherlands fully complies with international standards on protection of real property. The number of procedures involved is at the OECD average, while the processing time of 2.5 days is nearly ten times faster than the OECD average.

The Netherlands’ Cadaster, Land Registry, and Mapping Agency (Cadaster) was established in 1832 to collect and register administrative and spatial data on real property. The Cadaster is publicly available and can be accessed online ( https://www.kadaster.com/ ).

Intellectual Property Rights

The Netherlands is not included in the USTR Special 301 Report but is mentioned as hosting infringing websites in the 2022 Notorious Markets List.

The Netherlands is a member of the World Intellectual Property Organization (WIPO) and party to many of its treaties, including the Berne Convention, the Paris Convention, the Patent Cooperation Treaty (PCT), the WIPO Copyright Treaty (WCT), and the WIPO Performances and Phonograms Treaty (WPPT). The Netherlands generally conforms to accepted international practices for intellectual property rights (IPR), including the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Despite participating in negotiations on the Anti-Counterfeiting Trade Agreement (ACTA) treaty, the Netherlands, like other EU member states, has stated it will not sign the treaty in its current form. The EU has requested the European Court of Justice to advise on the compatibility of ACTA with existing European treaties, in particular the Charter of Fundamental Rights of the European Union.

The Netherlands is a signatory to the European Patent Convention and therefore is a contracting state of the European Patent Organization. In the Netherlands, patents for foreign investors are granted retroactively to the date of the original filing in the home country, provided the application is made through a Dutch patent lawyer within one year of the original filing date. Dutch patents are valid for 20 years, which is in line with EU regulations. Because the Netherlands and the United States are both party to the PCT, U.S. inventors may file for rights in the Netherlands using the PCT application. Legal procedures exist for compulsory licensing if the patent is inadequately used after a period of three years, but these procedures have rarely been invoked.

With the implementation of EU Directive 2004/48 on the enforcement of IPR, rights holders have a number of instruments at their disposal to enforce their rights in civil court. In addition to possible civil remedies, all IPR laws contain penal bylaws and reference to the Criminal Code. In 2012, the Dutch Parliament passed legislation that strengthened oversight and coordination of seven different collective institutions that oversee control, administration, and remuneration for commercial use of IPR. Policymakers agree on the need to raise public awareness of IPR rules and regulations and to strengthen enforcement. The Dutch government has recognized the need to protect IPR, and law enforcement personnel have worked with industry associations to find and seize pirated software. Current Dutch IPR legislation explicitly includes computer software under copyright protection.

The Netherlands has resisted criminalizing online copyright infringement for personal use, instead placing a surcharge on the sales of blank media (such as CDs, DVDs, and USB storage devices) to remunerate rights holders for the downloading of material from legal and illegal sources alike.

For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at https://www.wipo.int/directory/en/details.jsp?country_code=NL  .

Capital Markets and Portfolio Investment

The Netherlands is home to the world’s oldest stock exchange – established four centuries ago – and Europe’s first options exchange, both located in Amsterdam. The Amsterdam financial exchanges are part of the Euronext group that operates stock exchanges and derivatives markets in Amsterdam, Brussels, Lisbon, and Paris. Dutch financial markets are fully developed and operate at market rates, facilitating the free flow of financial resources. The Netherlands is an international financial center for the foreign exchange market, Eurobonds, and bullion trade.

The flexibility foreign companies enjoy in conducting business in the Netherlands extends into the area of currency and foreign exchange. There are no restrictions on foreign investors’ access to sources of local finance.

Money and Banking System

The Dutch banking sector is firmly embedded in the European System of Central Banks, of which the Dutch Central Bank (DNB) is the national prudential banking supervisor. AFM, the Dutch securities and exchange supervisor, supervises financial institutions and the proper functioning of financial markets and falls under the EU-wide European Securities and Markets Authority (ESMA). The highly concentrated Dutch banking sector is over three times as large as the rest of the Dutch economy, making it one of Europe’s largest banking sectors in relation to GDP. Three banks, ING, ABN AMRO, and Rabobank, hold nearly 85 percent of the banking sector’s total assets. The largest bank, ING, has a balance sheet of just over $1 trillion (€968 billion).

The DNB does not consider Bitcoin and similar cryptocurrencies to be legitimate currency, as they do not fulfill the traditional purpose of money as a stable means of exchange or saving and their value is not supported via central bank guarantee mechanisms. DNB considers current cryptocurrencies to be risky investments vulnerable to criminal abuse and has begun requiring providers of financial services related to exchange and deposit of cryptocurrencies register with the DNB, per anti-money laundering (AML) legislation.

The DNB acknowledges that, in the future, cash transactions will likely be replaced with digital transactions that require central bank-issued and -guaranteed cryptocurrencies. Dutch society has already embraced cash-less commerce to a high degree – seventy percent of over-the-counter shopping is via PIN transactions and contactless payment – and DNB is participating with central banks from Canada, Japan, England, Sweden, Switzerland, and the Bank for International Settlements in research about a possible central bank-issued cryptocurrency.

Foreign Exchange and Remittances

Foreign Exchange

The Netherlands is a founding member of the EU and one of the first members of the Eurozone. The European Central Bank supervises monetary policy, and the president of the Dutch Central Bank (DNB) sits on the European Central Bank’s Governing Council. There are no restrictions on the conversion or repatriation of capital and earnings (including branch profits, dividends, interest, and royalties), or management and technical service fees, with the exception of the nominal exchange-license requirements for nonresident firms.

Remittance Policies

The Netherlands does not impose waiting periods or other measures on foreign exchange for remittances. Similarly, there are no limitations on the inflow or outflow of funds for remittance of profits or revenue. The Netherlands, as a Eurozone member, does not engage in currency manipulation tactics. The Netherlands has been a member of the Financial Action Task Force (FATF) since 1990 and – because of the membership of its Caribbean territories in the Caribbean FATF (C-FATF) – strongly supports C-FATF.

With the promulgation of additional, preventative anti-money laundering and counterfeiting legislation, the Netherlands has remedied many of the deficiencies revealed in a 2011 Mutual Evaluation Report. As a result, FATF removed the Netherlands from its “regular follow-up process” in February 2014. The State Department’s Bureau of International Narcotics and Law Enforcement’s International Narcotics Control Strategy Report (INCSR) notes the Netherlands is a major trade and financial center and, consequently, an attractive venue for money laundering, but the Netherlands is generally making progress addressing money laundering
vulnerabilities.

More information can be found at 2022 INCSR-Volume II: Money Laundering (As submitted to Congress) – United States Department of State

Sovereign Wealth Funds

The Netherlands has no sovereign wealth funds.

Privatization Program

There are no ongoing privatization programs in the Netherlands.

Additional Resources

Department of State

• Country Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/);
• Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/);
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/) and;
• North Korea Sanctions & Enforcement Actions Advisory ( https://home.treasury.gov/system/files/126/dprk_supplychain_advisory_07232018.pdf ).

Department of the Treasury

• OFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions )

Department of Labor

• Findings on the Worst forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  );
• List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods );
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab ) and;
• Comply Chain ( https://www.dol.gov/ilab/complychain/ ).

Climate Issues

The government has national strategies for climate and natural capital. The Netherlands’ 2019 Climate Act sets legally binding targets to reduce greenhouse gas (GHG) emissions 49 percent by 2030 compared to 1990 levels, and 95 percent by 2050. The 2019 National Climate Agreement contains the policy and measures to achieve climate goals through agreements with various economic sectors on specific actions. The Rutte IV cabinet announced plans to accelerate the Netherlands’ decarbonization efforts in its 2021 coalition agreement, setting itself the goal of decreasing emissions by 60 percent compared to 1990 levels by 2030.

The 2019 National Climate Agreement contains the policy and measures to achieve these climate goals through agreements with various economic sectors on specific actions. In addition, a lower court ruling (later upheld by the Supreme Court) requires the government to reduce GHG emissions 25 percent by 2020 from 1990 levels. The participating sectors include electricity, industry, “built environment,” traffic and transport, and agriculture. As of 2022, it is supported by €35 billion in “transition funding,” a significant share of which will be invested into expanding the Netherlands’ nuclear energy infrastructure.

The 2017 Dutch Nature Conservation Act protects nature reserves as well as certain plants and animals. The government published in 2014 its strategy on managing the natural environment up to 2025 entitled “The Natural Way Forward: Government Vision 2014.” A central part of the strategy and legislation is the National Ecological Network, which is made up of existing and planned nature areas. The government commissions work on monitoring and accounting for biodiversity and ecosystem services from Statistics Netherlands and Wageningen University. The government has designated 10 percent of the Netherlands land area as “Natura 2000” areas under the EU’s Habitats Directive. These areas are subject to ceilings on nitrogen deposition. The Dutch government delayed full implementation of these ceilings through a permitting system that allowed exemptions for the agriculture and construction sectors in 2014. A 2019 court ruling voided the government’s permitting cutouts, kickstarting discussions about placing constraints on the Dutch agricultural sector and leading to the “farmer protests” of 2019. The nitrogen crisis will continue to have economic repercussions going into 2023, with the construction – and, more prominently, the agricultural sectors – facing short-term operating uncertainty.

The government has published an extensive National Plan on Sustainable Public Procurement for 2021-2025 with seven lines of action to address environmental and social concerns.

The 2021 National Trade Estimate of the Office of the U.S. Trade Representative (USTR) referred to some Dutch sustainability criteria that can bring about trade impediments: “The Sustainable Trade Initiative (IDH) and the Forest Stewardship Council (FSC) have developed standards for soybeans and wood pellets, respectively, that have been supported by the Dutch government and effectively require U.S. producers to meet onerous certification requirements. […] These criteria include a requirement for sustainability certification at the forest level, which effectively precludes reliance on the U.S. risk-based approach to sustainable forest management. As a result of the implementation of the criteria, wood pellet exports to the Netherlands have not kept pace with demand.”

Resources to Report Corruption

The Government agency that aids and protects whistleblowers is the Dutch Whistleblowers Authority or “Huis voor Klokkenluiders.” The Whistleblowers Authority Act, which came into force in the Netherlands on July 1, 2016, underlies the establishment of the Whistleblowers Authority. An English version of the Act can be found at  https://www.huisvoorklokkenluiders.nl/Publicaties/publicaties/2016/07/01/dutch-whistleblowers-act .

Huis voor KlokkenluidersMaliebaan 723581 CV UtrechtThe NetherlandsWebsite: https://www.huisvoorklokkenluiders.nl/english  Telephone: +31 (0)88 – 133 1000E-mail info@huisvoorklokkenluiders.nl 

The Dutch office of Transparency International is located in Amsterdam:
Transparency International NederlandOffices at KIT: Royal Tropical Institute, room d-3Mauritskade 641092 AD AmsterdamThe NetherlandsWebsite: https://www.transparency.nl/  Telephone: +31 (0)6 81 08 36 27E-mail: communicatie@transparency.nl