The Netherlands is a founding member of the European Union located in Northern Europe.
Economy of the Netherlands is very diversified with the main sectors ranging from a highly mechanised agricultural sector and fishing to metal and engineering products, electronic machinery and equipment, chemicals, petroleum, construction, and microelectronics. Due to the strategic geographic location of the Netherlands, other important parts of the economy are those gaining agvantages from the Netherlands' location: international trade, banking and transport.
The Netherlands has a favourable financial infrastructure with a long tradition in banking, retirement management, pension funds, investments and insurance products. In addition to the major Dutch banks such as ABN AMRO, ING, SNS Bank and Rabobank, the Netherlands houses branches of approximately 50 foreign banks.
|Population (2016)||16 979 120 (0.00%)|
|EU Status||member since 1952|
|National Currency||EUR (Euro) since 1 January 1999|
|Nominal GDP (2015)||678.6 bln EUR (+0.02%)|
|Nominal GDP per Capita (2015)||40 100 EUR (+0.02%)|
|Real GDP Growth (2015)||2.0 % (2014: 1.4 %)|
|CPI, MoM (Dec 2016)||0.2 % (Nov 2016: -0.6 %)|
|CPI, YoY (Dec 2016)||0.7 % (Nov 2016: 0.4 %)|
|CPI, Year Average (2016)||0.1 % (2015: 0.2 %)|
|Unemployment Rate (2016)||6.0 % (2015: 6.9 %)|
|Government Bond Yield (Dec 2016)||0.44 % (Nov 2016: 0.39 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||AAA||highest credit quality, outlook stable|
|Moody's||Aaa||prime, outlook stable|
|Withholding Tax||0.0 - 15.0%|
|Double Taxation Agreements||96 signed agreements|
|Exchange on Request||29 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 18 December 2013, Model 1|
|Financial Market Development||4.5 (max 7.0)||rank: 37th out of 138 countries|
|Banks' Soundness||5.3 (max 7.0)||rank: 51st out of 138 countries|
|Banking Industry Country Risk||2||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Euro)||Aaa||prime|
|Deposit Rates (Nov 2016, EUR)||1.51 % (Oct 2016: 1.55 %)|
|Banking Sector Structure|
|Number of Banks||100|
|Recent Changes (2016)||new banks: 4, closed banks: 111|
|Consolidated Assets (2015)||2 527.69 bln EUR (-0.04%)|
|ING Bank NV||ABN AMRO Bank NV|
|Rabobank Nederland||SNS Bank NV|
|List of Banks in Netherlands|
Netherlands joined the Euro Area on 1 January 1999.
According to Eurostat, nominal GDP of Netherlands in 2015 was 678.6 bln EUR.
Netherlands underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.1% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 2.0% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Netherlands was 40 100 EUR.
Netherlands has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 26.9% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in Netherlands in 2016 expressed as annual percentages of average consumer prices was 0.1% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2021 are IMF's estimates.
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Netherlands are shown in Table 1.
|Natural person, resident||15.0||0.0|
|Natural person, non-resident||15.0||0.0|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Netherlands signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Netherlands and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Netherlands signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Netherlands and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Netherlands signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Netherlands has FATCA agreement with the U.S. in effect since 18 December 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Netherlands are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: the Netherlands' financial accounts hold in U.S. financial institutions will be reported to the Netherlands' authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Netherlands is scored 4.5 out of maximum 7.0 and ranked 37th out of 138 analysed economies. Soundness of banks is scored 5.3 bringing Netherlands into the 51st place, trustworthiness and confidence of financial market is scored 4.5 (48th place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Netherlands is included into group '2' with economic risk scored '2' and industry risk scored '3'.
|Economic resilience||very low|
|Credit risk in economy||intermediate|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Netherlands are summarised in Table 3.
|Scheme Participants||all credit institutions operating in Netherlands, branches of non-EEA banks, branches of the Netherlands' banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Eligible Depositors||private individuals, small companies|
|Covered Accounts||nearly every payment or savings account, current account or term deposit is covered|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 3. Deposit guarantee scheme in Netherlands.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Netherlands is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Compare Bank Deposits in the Netherlands
Currently there are 100 credit institutions operating in Netherlands.
Recent structural changes (2013 - 2016) of the banking sector of Netherlands are summarised in Table 4.
|Number of Opened Banks||4||7||7||4|
|Number of Closed Banks||10||38||17||111|
Table 4. Recent structural changes in the banking sector of Netherlands.
All the credit institutions operating in Netherlands can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||49|
The list of the most recently opened banks in Netherlands is provided in Table 6.
|UBS Europe SE, Netherlands Branch (new)||December 2016|
|J.P. Morgan Europe Limited (new)||October 2016|
|Credit Suisse (Luxembourg) S.A., Netherlands Branch (new)||May 2016|
|Intesa Sanpaolo Bank Luxembourg Amsterdam Branch (new)||April 2016|
|Bank Degroof Petercam (new)||December 2015|
|Bank of America Merrill Lynch International Limited (new)||October 2015|
|Citibank Europe Plc (new)||October 2015|
|Credit Suisse International (new)||October 2015|
|Maple Bank GmbH (new)||August 2015|
|China Construction Bank (Europe) S.A. (new)||April 2015|
Table 6. The most recently opened banks in Netherlands.
There are 50 branches of foreign banks from 13 different countries in Netherlands. Table 7 shows 10 countries having the biggest number of branches in Netherlands.
|Country of Origin||Number of Branches|
|Korea, Republic of||1|