Netherlands ranks first in U.S. foreign direct investment
For the third consecutive year, the Netherlands remained the top recipient of U.S. foreign direct investment (FDI) in 2010, according to a recent report from the U.S. Bureau of Economic Analysis.
Top recipient
In 2010, the United States invested 521.4 billion dollars in the Netherlands, accounting for 13.3% percent of total outbound investment. This is the third consecutive year the Netherlands has held the top position for U.S. foreign direct investment. Holding companies within the Netherlands receive the majority of the American investments.
A possible explanation for the large amount of U.S. investments in the Netherlands is its favourable fiscal climate and international orientation.
Favourable fiscal climate
International companies established in the Netherlands profit from various tax advantages. The current corporate tax rate is well below the EU average: 20% on the first 200,000 euros profit and 25.5% on profits above that amount. A stable political environment provides certainty for future transactions, investments or corporate structures, and gives expatriates a 30% personal tax income advantage. In addition, innovation is fiscally stimulated by the Dutch government.
Top three
The other two countries, that together with the Netherlands make up the top three receiving countries are: the United Kingdom (508.4 billion dollars, 13% percent) and Canada (296.7 billion dollars, 6% percent).
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