The business climate in the Netherlands plays a crucial role in attracting and retaining companies, which is essential for maintaining our broad prosperity. Factors such as tax policy, regulations, labor market conditions, and infrastructure determine how attractive the Netherlands is for both international and domestic enterprises. The government focuses on creating the right conditions to support entrepreneurs in their growth potential, aiming to keep the business environment competitive and appealing. Policies are directed towards reducing regulatory pressure and addressing bottlenecks such as access to financing, grid congestion, and talent availability.
However, recent developments have led to uncertainties in the business climate. Companies like ASML and Boskalis have openly expressed concerns about fiscal and regulatory changes, even considering relocating activities to other countries. This highlights the importance of a stable and predictable climate for retaining large corporations in the Netherlands. In the 2025 Tax Plan, the government announced measures including a €1.3 billion tax relief for businesses. However, much of this relief results from reversing earlier, less favorable measures, raising questions about the long-term stability of fiscal policy.
The Netherlands’ position in the world
Internationally, the Netherlands performs well. It is one of the most competitive economies in the world according to the IMD World Competitiveness Ranking. In 2024, the Netherlands ranks ninth, having dropped from fifth place. Singapore and Switzerland top the list, while the Netherlands trails behind EU countries such as Denmark, Ireland, and Sweden. Additionally, the Business Climate Monitor shows that entrepreneurs give the business climate an average score of 6.0 out of 10, but this rating has declined for the second consecutive year. Particularly, energy infrastructure, talent availability, tax climate, and policy stability are highlighted as areas needing improvement.
Impact on the office market
Changes in the business climate have direct effects on the office market. An attractive climate encourages companies to establish or expand operations in the Netherlands, boosting the demand for office space, which benefits property developers and landlords. On the other hand, a deteriorating business climate can lead to higher vacancy rates and pressure on rental prices. The rise of hybrid working is prompting companies to reassess their need for physical office space, while demand grows for sustainable, well-connected office locations, as companies increasingly value ESG (Environmental, Social, and Governance) criteria.
The future of the business climate and the office market
To maintain a healthy and dynamic business climate, it is essential for policymakers to continue investing in fiscal stability, infrastructure, and a flexible labor market. This will not only attract businesses but also contribute to the growth of the real estate sector and the office market. The government aims to return the Netherlands to the top five most competitive countries globally. An attractive business environment enables entrepreneurs to grow and contribute to necessary societal transitions, such as digitalization and sustainability.
How will the Netherlands achieve this?
To strengthen the business climate, the government is committed to stable and predictable fiscal policies and tax relief for companies. Efforts are also underway to reduce grid congestion and maintain the quality of mainports, as well as to create more space for economic activity, with an emphasis on business parks and regional development. Regulatory pressure is being addressed through a reduction program, focused on better aligning regulations for small and medium-sized enterprises (SMEs). Finally, access to talent is being improved through a productivity agenda and the Action Plan for Green and Digital Jobs.
The Dutch business climate stands at a crossroads. By proactively responding to challenges and opportunities, the Netherlands can maintain its position as an attractive location for businesses. This will not only benefit companies but also ensure a stable and thriving office market, catering to the evolving needs of the business community. The government remains committed to strengthening the business environment and maintaining the Netherlands as one of the most business-friendly countries in the world.
