Amsterdam more attractive from cost perspective
In an annual ranking of 73 cities around the globe drawn up by Swiss bank UBS, Amsterdam was judged to have become less expensive compared to the other major cities. Wage levels are also amongst the lowest in Western Europe.
Purchasing power comparison
Amsterdam is more attractive in terms of costs based on the “Prices and Earnings” Report produced by UBS. A global comparison of purchasing power by the bank appeared just over a year ago. Following numerous inquiries, researchers at the bank decided to refresh last year’s research with an update on the price and wage comparison of 73 cities around the globe.
The updated report reveals that Amsterdam appears to have become less expensive in terms of prices and wages. The Dutch capital moved down from 23rd on the rankings of the most expensive cities in 2009 to 35th position in 2010.
Prices remain high in Oslo, Zurich and Geneva
Oslo, Zurich and Geneva remain the top three most expensive cities surveyed by UBS. When rent is factored in, New York, Oslo and Geneva remain the cities with the highest cost of living. Amsterdam stands out as a very affordable European city and ranks 35th on the list. This is striking as European cities occupy numerous places on the top ten most expensive cities. Copenhagen, for example, ranks as the fifth most expensive city followed by Stockholm (7th), London (10th) and Paris (14th).
High wages in Denmark and Switzerland
UBS also ranked the 73 cities in terms of wage levels. According to this ranking, Switzerland remains by far the world leader in both net and gross wages. In terms of gross wages, Denmark is the second most expensive country that was researched.
However, Amsterdam boasts a relatively low wage level compared with other European cities, coming in at 21st on the list. Cities such as Stockholm (8th), Munich (9th), Luxemburg (10th), Brussels (15th) and London (20th) all have higher wage levels according to the research carried out by UBS.
AMA: a cost effective location for international companies
The research illustrates that the Amsterdam Metropolitan Area is one of the most cost effective locations for international companies to set up shop.
The efficient Dutch legal system complete with transparent laws and a competitive tax system allows companies to get the highest possible return on their investments.
The country has a very competitive tax regime. Companies established in the Netherlands profit from various tax advantages such as a competitive 25% corporate tax rate, no withholding tax on outgoing interest and royalty payments, double taxation relief and many more.
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