2 Nov 2026 ·
If you only read the headlines, you might think the Netherlands has lost some of its shine. A tight housing market, a scaled-back 30% ruling, rising costs and an immigration debate that never quite goes away. All of that is real, and we talk about it with clients every week.
But when we sit down with international companies that are weighing where to build their European base, the Netherlands still comes out on top more often than not. In this article we look at both sides honestly: what makes the country harder than it used to be, what still makes it one of the best places in Europe to do business, and why people from all over the world keep choosing to build their careers here.
The honest part: what has become harder
Let’s start with the downsides, because anyone who tells you the Netherlands is effortless is selling something.
Housing is the biggest hurdle. The country is short roughly 400,000 homes, around 4.6 to 4.8 percent of the total housing stock, and the pressure is highest in the Randstad and in the mid-rent segment where most new international hires look first. Construction is picking up, but for a new hire arriving next quarter, finding a place to live can take longer than finding the job.
The 30% ruling is less generous than it was. From 1 January 2027 the maximum tax-free allowance under the expat scheme drops to 27 percent, and the salary threshold goes up for people who first qualified from 2025 onwards. It remains one of the more attractive expat schemes in Europe, but employers now need to check each employee’s regime and budget for the difference.
Employment law is protective, and that costs money. Dismissal is not something you decide on a Friday afternoon. An employer continues to pay at least 70 percent of salary for up to two years of sickness and carries real reintegration obligations under the Wet Poortwachter. Add the stricter enforcement on false self-employment since 2025, and companies used to at-will contracts or loose freelance arrangements need to rethink their setup.
Talent is scarce and not cheap. Unemployment is low, many sectors are short of people, and salaries and labour costs have risen accordingly. Add a political debate about migration that regularly makes international headlines, and it is understandable that some companies hesitate.
Why it still works for international companies
The interesting thing is that none of those challenges has changed the fundamentals. In June 2026 the Netherlands climbed two places to 8th out of 70 economies in the IMD World Competitiveness Ranking. That is not a country in decline.
Everyone speaks English. The Netherlands topped the EF English Proficiency Index again in 2025, first out of 123 countries and regions. In practice this means your international team can work in English from day one, from the office floor to the tax adviser, and that is a bigger advantage than most people realise until they try to set up in a country where it isn’t the case.
Europe is on your doorstep. With the Port of Rotterdam, Schiphol and some of the best road, rail and digital infrastructure in the world, you can reach most of the European market within a day. That is why so many companies run their EU headquarters, distribution or customer operations from here.
A stable and predictable environment. Laws change, as the 30% ruling shows, but they change through a transparent process with transition periods. Courts are reliable, government is approachable and there is an extensive network of tax treaties. For a company planning five or ten years ahead, that predictability is worth a lot.
A strong talent base. Dutch universities and applied sciences institutions produce highly educated graduates, and the large international community means you can hire people who already know how to work across cultures. The country is also consistently ranked among the most innovative economies in the world.
Why people from all over the world want to work here
Ask internationals what they think of the Netherlands and you usually get two answers in one breath: finding a home was a nightmare, and they would not want to work anywhere else. The InterNations Expat Insider 2025 survey says the same thing. The Netherlands came 4th out of 46 countries for working abroad, while housing and settling in remain the weak spots.
What do they like so much? First of all the work-life balance. Working hours are respected, part-time work is normal at every level, and nobody expects you to answer emails at ten at night. For people coming from the US, Asia or the Middle East, it can take a few months to believe that leaving at half past five is actually fine.
The second thing is the work culture itself. Dutch organisations are flat, people are expected to speak up, and the director is often just a first name in the canteen. Directness can take some getting used to, but most internationals end up appreciating that they always know where they stand.
And then there is daily life. The Netherlands is safe, well organised and compact. You can cycle to work, live in a small town and be in Amsterdam, Brussels or Paris within a few hours. In the larger cities you are surrounded by people from dozens of nationalities, so it is easy to find your own community while you get to know the Dutch one. Add strong employee protection, paid leave, a holiday allowance and good schools, including international ones, and it is clear why people who come for two years often stay for ten.
Making it work in practice
When we look at the companies that struggle in the Netherlands, it is rarely because of the country itself. It is usually because they underestimated the rules and set things up the way they would at home. Contracts that don’t fit Dutch law, freelancers who should have been employees, a 30% ruling application that was filed too late, or a sickness case that was handled without a proper reintegration file. These are the things that cost money later.
The good news is that almost all of it can be prepared for. Start the housing conversation with new hires early and build relocation support into the offer. Check now which of your employees move to the 27% regime in 2027 and whether their salaries still meet the threshold. Use Dutch employment contracts and a clear sickness absence policy from day one. And if you work with freelancers, make sure the relationship actually is one of self-employment.
Done properly, the downsides become manageable admin, and what remains is a country with an excellent talent pool, a central position in Europe and a working culture that people from all over the world actively choose.
At HRhelp we help international companies with exactly this, from employment contracts and HR policies to the expat ruling, absence management and interim HR support. If you are setting up in the Netherlands or want to check whether your current setup is ready for 2027, we are happy to have a conversation. You can reach us at hrhelp.nl.
