Foreign direct investment and multinationals
| billion euros | |
|---|---|
| Countries that invest the most in the Netherlands | |
| US | 534 |
| UK | 349 |
| Germany | 267 |
| Luxembourg | 199 |
| Belgium | 151 |
| Countries in which the Netherlands invests the most | |
| UK | 414 |
| US | 333 |
| Switzerland | 263 |
| Germany | 227 |
| Ireland | 163 |
The Netherlands is among the largest countries in the world in terms of inward and outward investment and may rightfully be considered a financial trading nation. With its strategic location, strong infrastructure, highly educated workforce and aptitude for innovation, the Netherlands offers foreign investors favourable conditions. Foreign enterprises are also important to the Netherlands. Foreign direct investment contributes not only to capital transfer, but also knowledge transfer and the labour market. Initiatives such as ‘Invest in Holland’ help the Dutch government to attract foreign-owned multinationals. Which investment partners are important for the Netherlands? How do foreign-owned multinationals operate in the Netherlands? How much employment do they generate? Which countries are involved? In which sectors are they active? Similarly, Dutch enterprises also have reasons to pursue cross-border activities. What is the impact of Dutch-owned multinationals abroad?
5.1Key findings
Financial interconnectedness with other countries (DNB)
- The Netherlands remains an attractive location for multinationals. Although a number of originally Dutch multinationals have moved abroad in recent years (such as Shell and Unilever), new multinationals such as Universal Music Group and Stellantis have also relocated to the Netherlands.
- The total value of shares listed on the Amsterdam stock exchange was almost €1.4 trillion (120% of GDP) by the end of 2024. Only the stock markets of Luxembourg and Ireland are larger in comparison to the GDP of their respective countries. The shares in circulation on the Dutch stock exchange are highly internationally oriented: only 10% are in Dutch hands.
- The Netherlands has had a current account surplus for many years; over the whole of 2024, that surplus amounted to €103 billion. This is mainly due to the international trade in goods but also, to a lesser extent, trade in services.
- The Netherlands has built up a substantial asset position abroad in recent years: at the end of 2024, this position amounted to €697 billion, or 62% of GDP. The asset position and the very substantial underlying assets and liabilities illustrate the international interconnectedness of the Dutch economy with other countries.
- The Netherlands’ interconnectedness with other countries is partly due to its role as a conduit country for international capital. In recent years, measures have been introduced to discourage tax avoidance in the Netherlands by multinationals, and the balance sheets of these conduit companies have declined accordingly.
- Despite the reduction of conduit activities, the Netherlands remains in the global top three when it comes to direct investment positions. In 2024, total inward investment increased by 1.7% to €3,527 billion and outward investment increased by 1.0% to €4,340 billion. More than 95% of direct investment was through non-financial corporations and conduit companies; the Netherlands’ largest investment partners were the US, the UK and Germany.
Multinationals in the Netherlands
- There were 27.1 thousand multinationals in the Netherlands in 2023, representing 1.7% of the Dutch business economy. Around one-third of these firms are Dutch multinationals, two-thirds are foreign multinationals.
- In 2023, around 2.5 million people in the Netherlands worked for a multinational, which means that around 1 in 3 jobs in the Dutch business economy was with a multinational. With 4.3 million people employed in the Netherlands, most people still worked for non-multinational firms.
- Most multinationals in the Dutch business economy are in wholesale and retail trade (over one-third). Subsequently, most of these (at 17% and 14%, respectively) operate in specialised business services and manufacturing.
- Dutch multinationals had an average of 129 persons on the payroll in 2023. The average number of employed persons on the payroll of a foreign multinational was almost half that, at 73. The average non-multinational firm had an average of 3 employees on the payroll.
- For both multinationals and the Dutch business economy as a whole, most employment was created by the wholesale and retail sector in 2023.
- With 3,350 firms, most foreign multinationals came from the US. Germany and the UK followed in second and third place, respectively.
- When Belgium, France, Switzerland, Sweden and Denmark are also included, we can say that around 52% of foreign multinationals come from closer to home.
- Around two-thirds of the total Dutch import value and export value of goods came from foreign multinationals in 2023. This represents an import value of €340.3 billion and an export value of €303.1 billion.
- Foreign multinationals accounted for around three-quarters of the total import value of the services trade in 2023 (€172.7 billion). The export value was similar at €173.0 billion.
- In 2023, 70% of multinationals were two-way traders: they imported as well as exported goods and/or services. Among non-multinationals, by contrast, around two-thirds of firms did not engage in any international trade at all.
Dutch multinationals abroad
- The most subsidiaries of Dutch multinationals are still found in Germany. Although the number of subsidiaries of Dutch multinationals in Germany decreased by around 7% from 2022 to 2023 to 3,368 firms, Germany remains in first place.
- The total number of Dutch subsidiaries abroad declined. There were 22.7 thousand Dutch subsidiaries worldwide in 2022, but the number fell to 20.9 thousand in 2023.
- At 457 thousand people, the largest number of people were employed by subsidiaries of Dutch multinationals in the US in 2023. Germany followed in second place.
- Although almost all the top ten investment countries saw a decline in the number of people employed by subsidiaries of Dutch multinationals abroad from 2022 to 2023, Belgium actually saw a slight increase to 98 thousand employees.
- With over €1 million per FTE, the highest turnover per FTE in 2023 was generated by subsidiaries of Dutch multinationals in France. Subsidiaries of Dutch multinationals in the US and the UK were in second and third place, with 811.6 thousand and 522.5 thousand euros per FTE respectively.
Outline
This chapter focuses on foreign direct investment (FDI) in and by the Netherlands. Section 5.2 describes the direct investment position and the international financial interconnectedness of the Netherlands based on macro-economic data from De Nederlandsche Bank (DNB). Foreign-owned multinationals in the Netherlands are discussed in section 5.3, based on Inward Foreign Affiliates Statistics (IFATS) from Statistics Netherlands (CBS). Dutch-owned multinationals abroad are discussed in section 5.4, based on CBS figures from the Outward Foreign Affiliates Statistics (OFATS). Figures in section 5.2 may deviate from those in sections 5.3 and 5.4. For the DNB figures, Dutch-owned multinationals are defined by location. In the CBS figures, both the location and the nature of control and decision-making are taken into account when determining whether an enterprise is classified as a Dutch-owned multinational or a foreign-owned multinational.
5.2Financial interconnectedness with other countries (DNB)
The Netherlands is a trading nation par excellence, and that includes the financial perspective. The Netherlands is home to many publicly listed multinationals, we invest substantial amounts in international financial markets and play a central role as a conduit country for international capital. The Netherlands is one of the most important countries in the world in terms of inward and outward foreign direct investment and it has, partly through international trade, built up a substantial net asset position abroad.
The Netherlands is an international financial hub
The Netherlands has long played an important role as an international financial hub, with its large financial sector, a stable legal system and well-regulated markets. The Netherlands remains an attractive location for multinationals, even in an age in which multinationals are more willing than before to relocate between countries, if, for example, this would lower costs or provide tax benefits.
At the end of 2024, the aggregate value of Dutch publicly listed shares stood at slightly less than €1,400 billion, equivalent to over 120% of GDP. Measured as a percentage of GDP, only the aggregate value of publicly listed enterprises in Luxembourg and Ireland is higher within the euro area (see Figure 5.2.1). Aggregate market capitalisation in absolute terms is greater in Germany and France, however. These publicly listed enterprises are Dutch-based, often listed on the Amsterdam stock exchange, but sometimes also on a stock exchange in another country.
| Country | Non-financial corporations | Conduit companies | Other sectors¹⁾ |
|---|---|---|---|
| Luxembourg | 34.3 | 212.0 | 1.7 |
| Ireland | 226.4 | 0.1 | 11.0 |
| Netherlands | 58.6 | 50.8 | 12.6 |
| France | 83.7 | 0.0 | 8.3 |
| Germany | 43.8 | 0.2 | 7.9 |
| Belgium | 34.2 | 3.4 | 12.9 |
| Spain | 35.1 | 0.4 | 13.8 |
| Italy | 18.7 | 0.0 | 12.5 |
| Austria | 18.2 | 0.0 | 10.8 |
| Portugal | 18.2 | 0.0 | 2.5 |
| Source: ECB | |||
| ¹⁾ This mainly includes banks (subsidiaries) and other financial institutions. | |||
ASML, currently the largest Dutch enterprise, had a market value of nearly €270 billion at the end of 2024, representing almost one-fifth of aggregate market capitalisation. Other large ‘truly Dutch’ multinationals include NXP Semiconductors, ING and Heineken. Shell and Unilever are no longer included in this group after having fully relocated their ultimate holding companies to the United Kingdom in recent years.
Conversely, some multinationals headquartered in the Netherlands have their origins abroad. They have relocated to the Netherlands, either by converting a foreign-owned ultimate holding company into a Dutch legal entity or by setting up a new ultimate holding company under Dutch law. Examples of large ‘newly Dutch’ multinationals include Universal Music Group, Prosus, Ferrari and Stellantis.
Even though these publicly listed ultimate holding companies are officially located in the Netherlands and the general meeting of shareholders also takes place in the Netherlands, other activities in the Netherlands are generally fairly limited. Upper management is often located in the original home country. As long as these Dutch-based publicly listed ultimate holding companies do not carry out any substantial business activities and have only a very limited number of employees, they are classified as ‘conduit companies’. At the end of 2024, such conduit companies, with a market capitalisation of nearly €580 billion, accounted for just under half of the aggregate market capitalisation of Dutch-owned publicly listed enterprises.
The international character of Dutch-owned multinationals is also shown by the investors’ nationalities. Of the ten largest Dutch-owned publicly listed multinationals, only around 10% of shares were in Dutch hands at the end of 2024. Investors based in other euro area countries accounted for approximately 25%. The remaining 65% was held by investors outside the euro area.
The Netherlands invests abroad
The Netherlands has a structural surplus on the current account. This means that we earn more from transactions with other countries than vice versa, for example by exporting goods and services or through the income earned from Dutch assets abroad. The Dutch surplus is primarily due to the international trade in goods and, to a lesser extent, to the trade in services.
| Year | Goods balance | Services balance | Income account | Current account balance |
|---|---|---|---|---|
| 2009 | 6.7 | 1.6 | -8.4 | 0.0 |
| 2010 | 7.7 | 1.3 | -4.0 | 4.9 |
| 2011 | 8.4 | 0.6 | 1.3 | 10.3 |
| 2012 | 9.4 | 0.9 | -2.6 | 7.6 |
| 2013 | 10.9 | 1.3 | -0.9 | 11.4 |
| 2014 | 10.1 | 1.6 | -2.7 | 9.0 |
| 2015 | 10.7 | 6.1 | -2.2 | 14.6 |
| 2016 | 10.8 | 1.3 | -3.7 | 8.4 |
| 2017 | 11.3 | 0.7 | -1.3 | 10.7 |
| 2018 | 10.5 | 0.6 | -0.8 | 10.3 |
| 2019 | 8.4 | 2.0 | -1.9 | 8.6 |
| 2020 | 7.8 | 2.6 | -5.3 | 5.1 |
| 2021 | 8.4 | 1.6 | 3.3 | 13.2 |
| 2022 | 7.1 | 2.6 | 0.6 | 10.3 |
| 2023 | 6.2 | 2.7 | 0.4 | 9.3 |
| 2024 | 7.7 | 3.4 | -0.8 | 10.3 |
The current account balance is an important indicator for policymakers worldwide. The European Commission, for example, uses the current account as one of the indicators in its Macroeconomic Imbalance Procedure. When the US government announced in April 2025 that it would impose widespread import tariffs, they calculated the tariffs for each country based on components of the current account. If countries had exported more goods to the US than they had imported, a tariff increase was applied, based on the size of the difference. For the whole of 2024, this difference stood at €212 billion for the EU and the US, which translated into a 25% tariff imposed on steel and aluminium, for example. It is worth noting that only a part of international trade was considered, namely trade in goods. The imports and exports of services, such as IT and consultancy services, were not taken into account. In contrast to its trade deficit in goods, the US is actually a net exporter of services to the rest of the world, with a surplus of nearly €290 billion over the whole of 2024.
Partly due to its current account surplus, the Netherlands has built up a substantial net asset position abroad in recent years: at the end of 2024, this position amounted to €697 billion, or 62% of GDP. These ‘external assets’ have increased by no less than €529 billion over the past ten years. This increase is largely due to the fact that we invest our earnings abroad. However, rising and falling stock exchange prices abroad, along with movements in international currency markets, also affect the value of our external assets.
The Netherlands’ external asset position is seen as significant from an international perspective, especially compared to Dutch GDP. This quickly becomes clear when the analysis is extended to the euro area as a whole. At the end of 2024, the external assets of the euro area as a whole stood at €1,778 billion or 12.2% of GDP. The largest contributor to this external asset position was Germany, followed by the Netherlands and Belgium. Spain, France and Ireland made a negative contribution to the euro area’s investment position.
The external asset position is expressed as a net figure that is calculated by subtracting Dutch foreign liabilities from Dutch foreign assets. Both liabilities and assets are substantial with respect to the Dutch economy, indicating the extent of the Netherlands’ deep financial integration with other countries. The Netherlands’ assets and liabilities are among the largest in the world as a proportion of GDP (see Figure 5.2.3). However, for much larger economies, such as the US and Germany, the absolute figures are naturally higher than those of the Netherlands.
| Land | Assets | Liabilities |
|---|---|---|
| Netherlands | 853 | -796 |
| UK | 500 | -509 |
| France | 358 | -377 |
| Belgium | 396 | -338 |
| Germany | 309 | -231 |
| EU27 | 250 | -240 |
| Japan | 264 | -178 |
| US | 123 | -213 |
| China | 54 | -37 |
| Source: IMF | ||
Where do these large assets and liabilities come from? To gain a clearer understanding, we will look at the various components, for example sectors, of the Dutch economy, differentiating between different types of liabilities and assets: foreign direct investment, portfolio investment and other investment. Foreign direct investment means structural, substantial investment in enterprises, usually parent/subsidiary structures and joint ventures of multinationals. Portfolio investment are investments in shares or debt securities, for example Dutch consumers purchasing shares in Shell or Apple. Other investment includes international loans of banks and DNB’s foreign exchange reserves.
The external assets of the Dutch economy as a whole consisted largely of foreign direct investment (€813 billion), while foreign countries invested more in portfolio investment (-€522 billion) than vice versa. Figure 5.2.4 shows that different components of the Dutch economy play different roles in this. Dutch institutional investors, such as insurance companies, pension funds and investment institutions, invested a total of €1,714 billion in foreign securities. This mainly concerns Dutch pension funds. However, as foreign investors have made substantial investments in Dutch-owned publicly listed multinationals, the Netherlands’ total net assets in securities remain negative.
| Sector | Foreign direct investment | Portfolio investment | Other |
|---|---|---|---|
| Non financial corporations | 177 | -701.3 | -11 |
| Bancaire sector | 56.9 | -301 | 286.5 |
| Institutional investors | 20.4 | 1714.0 | 37.9 |
| Other financial institutions | 202.8 | -805.3 | 25.6 |
| SPE's | 320.6 | -341.8 | 30.1 |
| Govenment | 1.3 | -180.8 | 22.3 |
| Households | 34.1 | 94 | 14.5 |
| Total Netherlands |
813 | -522.3 | 405.9 |
| Source: DNB | |||
Figure 5.2.5 shows the regions where Dutch international assets and liabilities are located. The Netherlands has the closest financial links with other countries in the euro area. At the end of 2024, total assets in the euro area, excluding Ireland and Luxembourg, stood at over €2,750 billion and liabilities amounted to €3,000 billion. In second position are the ‘conduit jurisdictions’, a group of countries that have very large inward and outward FDI compared to the size of their economies, first and foremost, Ireland and Luxembourg. These are followed by the US and the UK. Assets and liabilities in developing countries, low-tax jurisdictions, and emerging markets are considerably smaller.
| Group of countries | Direct investment assets | Direct investment liabilities | Securities assets | Securities liabilities | Other assets | Other liabilities | Net asset position |
|---|---|---|---|---|---|---|---|
| EMU ²⁾ | 1389.1 | -1338.5 | 556.6 | -1010.6 | 818.4 | -676.1 | -261.0 |
| Conduit jurisdictions |
1083.0 | -1015.0 | 370.5 | -507.4 | 277.6 | -256.8 | -48.1 |
| US | 755.6 | -899.3 | 700.0 | -683.6 | 179.6 | -164.7 | -112.3 |
| Rest of the world | 874.9 | -690.7 | 338.6 | -399.1 | 300.5 | -185.0 | 239.1 |
| UK | 710.8 | -575.8 | 126.5 | -80.9 | 451.4 | -356.1 | 275.9 |
| Low-tax jurisdictions (LBJ) |
305.2 | -196.0 | 83.1 | -95.5 | 49.8 | -35.8 | 110.8 |
| Emerging markets |
452.5 | -186.3 | 47.7 | -11.9 | 28.4 | -29.4 | 301.0 |
| Developing countries |
187.2 | -44.1 | 44.3 | -0.7 | 17.1 | -13.1 | 190.8 |
| ¹⁾ Positive amounts relate to Dutch foreign assets and negative amounts indicate foreign liabilities. The geography of foreign-held securities is estimated based on IMF CPIS data. ²⁾ Excluding Ireland and Luxembourg | |||||||
A significant amount of capital flows through the Netherlands
The Netherlands’ high degree of interconnectedness with other countries is partly due to its role as a conduit country for international capital. Foreign-owned multinationals invest in other countries via the Netherlands, which means that a large volume of inward and outward foreign direct investment takes place without ever being part of the Dutch business economy. This usually involves ‘conduit companies’: holdings within multinational enterprise groups that route their profit flows, such as dividends and interest rates, within the corporation. These enterprises have significant balance sheets, but hardly any economic substance in the form of output or employees. Of all Dutch sectors, conduit companies have the largest cross-border positions by far. In total, the foreign assets of conduit companies stood at over €4,000 billion at the end of 2024, against liabilities at nearly €4,500 billion.
Within the category of conduit companies, we distinguish between special purpose entities (SPEs), which, according to international definitions, have minimal financial relations with the Netherlands, and other conduit companies, which maintain some substantive connection with the Netherlands. These include, for example, the holding companies of certain publicly listed multinationals that issue shares in the Netherlands. F igures 5.2.6a and 5.2.6b show the domestic and foreign assets and liabilities of conduit companies. Since the SPEs focus solely on the flow of capital, their domestic positions are marginal. The domestic market plays a more significant role for the other conduit companies, especially through their participations in the Dutch business economy. Nevertheless, financial relations with foreign countries also dominate here, accounting for over 90% of liabilities and over 75% of assets. Both SPEs and the other conduit companies primarily have links with the euro area, excluding Ireland and Luxembourg, followed by financial relations with conduit jurisdictions and the US.
| Country | Direct investment assets | Direct investment liabilities | Securities activa | Securities liabilities | Dutch assets | Dutch liabilities | Other assets | Other liabilities |
|---|---|---|---|---|---|---|---|---|
| EMU²⁾ | 541,1 | -463,9 | 14,5 | -156,2 | . | . | 98,7 | -46,7 |
| Conduit jurisdictions |
269,6 | -363,4 | 6,1 | -78,5 | . | . | 22,7 | -66,1 |
| US | 324,9 | -267,4 | 8,2 | -105,7 | . | . | 8 | -20,9 |
| Rest of the world |
336,9 | -219,1 | 11,6 | -43 | . | . | 22,4 | -18,4 |
| UK | 223,7 | -154,3 | 20,6 | -12,5 | . | . | 52 | -29,9 |
| Emerging marktets |
155,6 | -86,3 | 1,4 | -1,8 | . | . | 9,2 | -4,6 |
| Low-tax jurisdictions |
75,7 | -94,4 | 3,6 | -14,8 | . | . | 2,2 | -2,2 |
| Developing countries |
61 | -18,8 | 4,8 | -0,1 | . | . | 5,1 | -1,4 |
| Domestic | . | . | . | . | 2,5 | -11,4 | . | . |
| ¹⁾ Positive amounts relate to foreign assets and negative amounts indicate foreign liabilities. The geography of foreign-held securities has been estimated based on IMF CPIS data. | ||||||||
| ²⁾ Excluding Ireland and Luxembourg | ||||||||
| Country | Direct investment assets | Direct investment liabilities | Securities assets | Securities liabilities | Dutch assets | Dutch liabilities | Other assets | Other liabilities |
|---|---|---|---|---|---|---|---|---|
| EMU²⁾ | 368,3 | -443,2 | 15,6 | -265,4 | . | . | 33,5 | -33,5 |
| Conduit jurisdictions |
400,6 | -350,1 | 22 | -133,2 | . | . | 17,8 | -23,5 |
| US | 164,1 | -248,7 | 11,3 | -179,5 | . | . | 3,2 | -3,3 |
| Rest of the world |
196,1 | -134 | 12,4 | -79,5 | . | . | 4,5 | -4,6 |
| UK | 287,3 | -246,1 | 3,5 | -21,2 | . | . | 13,3 | -3,9 |
| Emerging markets |
84,2 | -53,8 | 3,9 | -3,1 | . | . | 1,1 | -0,2 |
| Low-tax jurisdictions |
198,3 | -45,5 | 4,6 | -25,1 | . | . | 0,5 | -0,9 |
| Developing countries |
49,1 | -6,2 | 0,4 | -0,2 | . | . | 0,6 | -0,6 |
| Domestic | . | . | . | . | 550,8 | -159,5 | . | . |
| Bron: DNB | ||||||||
| ¹⁾ Positive amounts relate to foreign assets and negative amounts indicate foreign liabilities. The geography of foreign-held securities has been estimated based on IMF CPIS data. | ||||||||
| ²⁾ Excluding Ireland and Luxembourg | ||||||||
In recent years, the size of the balance sheet of Dutch-owned conduit companies has decreased relative to GDP. This trend has been in evidence since 2018, and is partly the result of a strong rise of the nominal GDP in the Netherlands. In addition, various multinationals have scaled back their conduit constructions in the Netherlands, so their interest and dividend flows are now routed differently through the corporation. This decrease is likely related to the introduction of various measures intended to prevent tax avoidance. Historically, multinationals have found it particularly advantageous to route profits through the Netherlands to take advantage of its extensive network of tax treaties with other countries. This has become a less attractive option in recent years due to the implementation of the Minimum Tax Act 2024, which states that large multinationals are subject to a minimum tax rate of 15% worldwide. It also introduces and expands the option of withholding taxes on cash flows to low-tax jurisdictions.
In 2024, various constructions involving the US and low-tax jurisdictions were scaled back further. On the other hand, there was a slight increase in conduit activities relative to the euro area, conduit jurisdictions and the UK.
The Netherlands remains a major player in foreign direct investment
Despite the reduction of conduit activities, the Netherlands remains in the global top 3 when it comes to direct investment positions in 2024 (OECD, 2025). After outstanding investments reached their lowest level in five years in 2023, both outward and inward investment increased slightly again in 2024. Total inward investment rose by 1.7% to €3,527 billion, while outward investment rose by 1.0% to €4,340 billion.
In this and other direct investment mentioned in this section, reference is made to the outstanding investment positions as measured under the directional principle. According to this principle, all investment made by Dutch-owned parent companies abroad is classified as outward investment and all investment made by foreign-owned parent companies in the Netherlands is classified as inward investment. Investment from a subsidiary to its parent company is netted against the investment from the parent company to the subsidiary. This approach has the added benefit of providing a better understanding of the direction of the impact of investment than is the case with a standard presentation based on assets and liabilities.
Figure 5.2.7 shows that Dutch direct investment is largely concentrated in three sectors of the Dutch economy. SPEs accounted for approximately 30% of new investments. SPEs’ inward investment increased by 1% to €997 billion, while outward investment remained virtually the same in 2024 and stood at €1,317 billion at the end of 2024.
Other conduit companies and non-financial corporations both accounted for approximately one-third of inward and outward FDI. Only 4% of outward investment and 2% of inward investment is accounted for by other sectors, such as banks, other financial service providers, the government and households.
| Type | SPEs | Non-financial corporations | Other conduit companies | Other |
|---|---|---|---|---|
| Inward | . | . | . | . |
| 2024 | 997 | 1277 | 1195 | 59 |
| 2023 | 989 | 1242 | 1182 | 57 |
| 2022 | 1061 | 1395 | 1299 | 44 |
| 2021 | 1020 | 1341 | 1293 | 35 |
| 2020 | 1143 | 1143 | 1259 | 39 |
| Outward | . | . | . | . |
| 2024 | 1317 | 1454 | 1415 | 154 |
| 2023 | 1318 | 1434 | 1392 | 152 |
| 2022 | 1398 | 1633 | 1423 | 144 |
| 2021 | 1364 | 1527 | 1549 | 153 |
| 2020 | 1471 | 1316 | 1548 | 140 |
| Source: DNB | ||||
Changes in the foreign direct investment positions over time are largely determined by new investment transactions. The value of these transactions can fluctuate considerably each year and is subject to the effects of specific events, including major restructurings by multinationals. In some years, just a handful of enterprises set the tone. A significant share of the decline in outstanding investment in 2023, for example, was linked to the dismantling of conduit structures by multinationals. The elimination of this type of structure is included in the figures as ‘negative foreign direct investment transactions’. Consequently, the sum of incoming transactions over the whole of 2023 was –€271 billion, and the sum of outward transactions was –€287 billion. Also in 2024, the sum of transactions was negative, but less negative than in the previous year: inward transactions stood at –€24 billion and outward transactions at –€14 billion.
In addition to transactions, outward investment is also influenced by changes in value and fluctuations in the international currency markets. Thanks to these factors, total foreign direct investment went up in net terms in 2024.
US and UK continue to be the most important investments partners
Excluding financial flows through SPEs based in the Netherlands, the top 5 foreign direct investment partners of the Netherlands remained unchanged in 2024 compared to the previous year. The US invariably tops the Dutch ranking of inward direct investment partners. The UK, Germany, Luxembourg and Belgium made up the rest of the top 5 list (see Figure 5.2.8). In recent years, these five countries have consistently been the source of approximately 60% of foreign direct investment in the Netherlands.
Changes in the ranking are also heavily influenced by events involving individual enterprises. For example, the UK’s rise in 2021 was largely attributable to Shell’s relocation from the Netherlands to the UK. Luxembourg owes its position as a major trading partner partly to its role as a conduit country. This is because the rankings presented here refer to the country from which an investment arrives from or goes to immediately, rather than where it originally came from or its ultimate destination. Like the Netherlands, Luxembourg serves as a conduit hub for many multinationals when investing in other countries, making it a relatively large trading partner of the Netherlands.
| US | UK | Germany | Luxembourg | Belgium | |
|---|---|---|---|---|---|
| 2020 | 1 | 3 | 4 | 2 | 5 |
| 2021 | 1 | 2 | 4 | 3 | 5 |
| 2022 | 1 | 2 | 4 | 3 | 5 |
| 2023 | 1 | 2 | 3 | 4 | 5 |
| 2024 | 1 | 2 | 3 | 4 | 5 |
| Source: DNB | |||||
For the past years, the ranking of countries in which the Netherlands invests, excluding SPEs, has consistently been headed by the UK, the US and Switzerland (see Figure 5.2.9). Although Luxembourg has regularly featured in the top 5 in the past, Germany and Ireland have completed the top 5 in recent years. The top 5 accounted for almost 45% of the Netherlands’ outward foreign direct investment in 2024, just as they did in 2023.
| UK | US | Switzerland | Germany | Ireland | |
|---|---|---|---|---|---|
| 2020 | 1 | 2 | 3 | 6 | 7 |
| 2021 | 1 | 2 | 3 | 5 | 7 |
| 2022 | 1 | 2 | 3 | 4 | 6 |
| 2023 | 1 | 2 | 3 | 4 | 5 |
| 2024 | 1 | 2 | 3 | 4 | 5 |
| Source: DNB | |||||
5.3Multinationals in the Netherlands
This section looks at multinationals active in the Dutch business economy. How many multinationals are actively involved in the Dutch business economy? Where do foreign-owned multinationals come from? How much employment is generated by multinationals in the Netherlands? In which sectors are they active? Finally, this section discusses international trade and multinationals’ type of trade in the Dutch business economy.
What is a multinational?
A multinational is an enterprise that exercises ultimate control over enterprises in two or more countries. A Dutch-owned multinational is an enterprise under ultimate Dutch control with at least one subsidiary (majority stake) abroad. A foreign-owned multinational is a subsidiary based in the Netherlands that is ultimately controlled from abroad. Enterprises without a parent or subsidiary abroad are referred to as non-multinationals.
The number of multinationals in the Netherlands is hardly growing
The number of multinationals in the Dutch business economynoot1 grew by only 1% from 2022 to 2023 (see Figure 5.3.1). This growth is lower than in previous years, when annual growth was approximately 3 percentage points higher. Whereas the number of multinationals went up from 25.7 thousand in 2021 to 26.8 thousand in 2022, in 2023 the number only increased to 27.1 thousand. This means that 1.7% of the Dutch business economy was made up of multinationals. Around one-third of those enterprises are Dutch-owned multinationals; two-thirds are foreign-owned. This trend is similar to the previous years. From 2022 to 2023, the number of non-multinationals grew by 5% to 1.58 million enterprises (rounded). This represents a decline in growth of 2 percentage points from the previous year. From 2021 to 2022, the number of non-multinationals still grew from 1.40 million to 1.50 million enterprises.
| Jaar | Multinationals |
|---|---|
| 2013 | 21.62 |
| 2014 | 22.16 |
| 2015 | 22.34 |
| 2016 | 22.96 |
| 2017 | 23.67 |
| 2018 | 23.68 |
| 2019 | 24.14 |
| 2020 | 24.88 |
| 2021 | 25.72 |
| 2022* | 26.84 |
| 2023* | 27.07 |
The year 2023 brought some changes for foreign investors. For example, June saw the introduction of the Investment, Mergers and Acquisitions Security Screening Act (Wet Vifo). This legislation mandates a security screening for investments, mergers and acquisitions. The Dutch government introduced this screening to protect national security in critical and sensitive sectors (RVO, 2024). Several other European countries have similar legislation in place (Olsthoorn & van Wijnen, 2022).
The majority of income continues to come from non-multinationals
In 2023, most employed persons in the Netherlands worked for non-multinationals (see Figure 5.3.2). The pattern of the previous years has not changed in this respect. The number of people working for non-multinationals actually increased by 2% from 2022 to 2023, to a total of 4.3 million employed persons. At 2.5 million employed persons, around 1 in 3 jobs in the Dutch business economy were with a multinational. It was not only the number of multinationals that stagnated in 2023: employment by multinationals also remained unchanged in absolute terms compared to the previous year.
| Jaar | Multinationals | Non-multinationals |
|---|---|---|
| 2013 | 2036 | 3491 |
| 2014 | 2046 | 3498 |
| 2015 | 2062 | 3609 |
| 2016 | 2154 | 3684 |
| 2017 | 2243 | 3784 |
| 2018 | 2383 | 4046 |
| 2019 | 2339 | 4034 |
| 2020 | 2292 | 3974 |
| 2021 | 2367 | 4041 |
| 2022* | 2462 | 4228 |
| 2023* | 2482 | 4314 |
How and where multinationals operate in the Dutch business economy
The majority of the multinationals in the Dutch business economy – over a third – are active in wholesale and retail trade. After that, at 17% and 14% respectively, most multinationals operate in specialised business services and manufacturing. When we compare Dutch-owned multinationals with foreign-owned multinationals active in the Netherlands in Figure 5.3.3, we see that Dutch-owned multinationals are somewhat less active in the wholesale trade (foreign-owned multinationals: 36%; Dutch-owned multinationals: 30%) and somewhat more active in manufacturing (foreign-owned multinationals: 13%; Dutch-owned multinationals: 17%).
Looking at the Dutch business economy as a whole instead of focusing only on multinationals, the distribution is slightly different. Overall, most enterprises are active in specialised business services (29%), followed by wholesale and retail trade (19%) and a joint third place for the information and communication sector and renting/leasing and other business services (both 8%). In relative terms, non-multinationals are thus more likely to be active in other sectors, such as various services.
| Type bedrijf | Manufacturing | Wholesale and retail trade | Trasportation and storage | Information and communication | Specialised business services | Renting/leasing and other business services | Other sectors |
|---|---|---|---|---|---|---|---|
| Foreign-owned multinationals | 13 | 36 | 6 | 13 | 17 | 5 | 10 |
| Dutch-owned multinationals | 17 | 30 | 6 | 10 | 18 | 6 | 13 |
| Total Dutch business economy | 5 | 19 | 4 | 8 | 29 | 8 | 26 |
Many hands make light work at Dutch-owned multinationals
Figure 5.3.4 shows that 28% of Dutch-owned multinationals had 50 or more employed persons on their payroll, compared to 19% in the case of foreign-owned multinationals. Dutch-owned multinationals had an average of 129 employed persons on their payroll in 2023. The average number of employed persons on the payroll of foreign-owned multinationals was almost half of that, at 73. This picture has hardly changed in recent years.
With an average of three employees, non-multinationals had much smaller payrolls. 81% of non-multinationals consisted of enterprises with only one employed person. Only 2% of non-multinationals employed between 10 to 49 persons, and there were only a few non-multinationals with 50 or more employed persons – 0.4% of the total of non-multinationals.
| Type bedrijf | 1 employee | 2 - 9 employees | 10 - 49 employees | 50 - 249 employees | 250 or more employees |
|---|---|---|---|---|---|
| Foreign-owned multinationals | 5.3 | 4.7 | 4.4 | 2.6 | 0.8 |
| Dutch-owned multinationals | 1.8 | 2 | 3 | 1.9 | 0.6 |
| Non-multinational firms | 1272.4 | 260.7 | 38.6 | 5.2 | 0.6 |
Relatively high number of employees in the renting/leasing and other business services sector
The employment top 3 for multinationals by sector (Figure 5.3.5) shows a different distribution than the top 3 sectors by total number of enterprises (Figure 5.3.3). While most multinationals, ranked by number, are active in wholesale and retail trade, specialised business services and manufacturing, most employment is created by – again – wholesale and retail trade, followed by manufacturing, but also by the renting/leasing and other business services sector. Also, employment by sector in the overall Dutch business economy deviates slightly from the number of enterprises by sector. The wholesale and retail trade sector generates the most employment, followed by renting/leasing and other business services, and specialised business services.
| Type bedrijf | Manufacturing | Wholesale and retail trade | Transportation and storage | Information and communication | Specialised business services | Renting/leasing and other business services | Other sectors |
|---|---|---|---|---|---|---|---|
| Foreign-owned multinationals | 20 | 28 | 11 | 10 | 9 | 14 | 8 |
| Dutch-owned multinationals | 17 | 29 | 9 | 6 | 9 | 20 | 10 |
| Total Dutch business economy | 12 | 25 | 7 | 6 | 14 | 16 | 20 |
Most foreign-owned multinationals are under US control, though many also come from countries nearby
With 3,350 enterprises, most foreign-owned multinationals in 2023 were from the US, see Figure 5.3.6. Approximately one-fifth of all foreign-owned multinationals in the Netherlands thus originate from the US. This has not changed with respect to the previous years. Together, Germany, the UK and Belgium topped the list of countries with the largest number of multinationals in the Netherlands after the US, accounting for 2,485, 2,165 and 2,010 enterprises respectively.
When France, Switzerland, Sweden and Denmark are also included, more than half (52% in total) of foreign-owned multinationals are also from countries close to the Netherlands. In 2023, approximately 46% of all foreign-owned multinationals in the Netherlands came from an EU country, namely 8,305 (excluding previously mentioned Switzerland and the UK).
Multinationals have a variety of reasons for having foreign subsidiaries: to enter new markets, improve operational efficiency or productivity, or benefit from tax advantages, for example (British Business Bank, 2025). In the public mind, this is often associated with remote locations, but multinationals also have reasons for investing in countries closer to home. Distances are smaller, not only geographically, but also culturally (Hofstede, 2001). This means that it is easier to compare their own market with markets that are located closer, there is often more legislative and regulatory overlap, language presents less of a barrier, and cultural aspects such as work ethics and political perspectives are generally comparable, potentially reducing uncertainty and costs (Kashefi-Pour et al., 2020).
Strongest growth in the number of Swiss-owned and Chinese-owned multinationals in the Netherlands
The most multinationals in the Netherlands each year come from the US, and from 2022 to 2023 the number increased further by 5%. However, it was not the US that saw the strongest growth. Swiss-owned multinationals ranked sixth by absolute number in 2023, but recorded the strongest growth among the top 10 countries of origin, with a 9% increase compared to the previous year (from 600 to 655 enterprises; see Figure 5.3.7). The number of Chinese-owned multinationals in the Netherlands also increased relatively strongly, by 7% to a total of 525 enterprises in 2023. In 2023, the number of multinationals in the Netherlands from another European country rose by only 1% compared to the previous year.
| Herkomst | 2023* |
|---|---|
| US | 3350 |
| Germany | 2485 |
| UK | 2165 |
| Belgium | 2010 |
| France | 1035 |
| Switzerland | 655 |
| Japan | 610 |
| Sweden | 570 |
| China | 525 |
| Denmark | 355 |
Foreign-owned multinationals are calling the tune in international trade
In 2023, foreign-owned multinationals accounted for approximately two-thirds of both the total Dutch import value and export value of goods (see Figure 5.3.8).noot2 That was an import value of €340.3 billion and an export value of €303.1 billion. Due to the higher import value, foreign-owned multinationals have a trade deficit in goods. Although the import value and export value of goods from Dutch-owned multinationals and non-multinationals are much lower than those of foreign-owned multinationals, these, too, show a trade deficit in goods.
Foreign-owned multinationals also dominated the trade in services in 2023. Foreign-owned multinationals accounted for around three-quarters of the total import value of the trade in services (€172.7 billion). At €173.0 billion, the export value was almost the same. While both Dutch-owned multinationals and foreign-owned multinationals have a trade surplus in services, non-multinationals actually have a trade deficit.
| Handelsstroom | Foreign-owned multinationals | Dutch-owned multinationals | Non-multinational firms |
|---|---|---|---|
| Goods | . | . | . |
| Imports | 340.3 | 127.7 | 79.5 |
| Exports | 303.1 | 84.3 | 77.9 |
| Services | . | . | . |
| Imports | 172.6 | 36.5 | 21.5 |
| Exports | 173 | 50.4 | 20.3 |
Most multinationals in the Dutch business economy are two-way traders
Figure 5.3.9 shows the distribution of the number of traders in the Dutch business economy by type and multinational status. In 2023, most foreign-owned multinationals were two-way traders, meaning that they both imported and exported goods and/or services. Dutch-owned multinationals had the highest share of two-way traders. Nearly three-quarters of Dutch-owned multinationals were two-way traders in 2023. Among foreign-owned multinationals, around two-thirds were two-way traders. The situation among non-multinationals is different: two-thirds of non-multinationals did not engage in international trade at all. That is not surprising, considering that a large proportion of these enterprises consist of sole proprietorships, and international trade is often reserved for larger, more productive enterprises that can bear the associated costs and risks (Creusen et al., 2011; Wagner, 2007).
Subsequently, for both multinationals and non-multinationals, the share of enterprises that engage exclusively in imports is the largest. This concerns approximately one in five enterprises for all identified multinational statuses. The share of enterprises that engage exclusively in exports is actually the lowest among all multinational statuses, at less than 5%.
| Type | Importer only | Exporter only | Two-way trader | Non-trader |
|---|---|---|---|---|
| Foreign-owned multinationals | 3435 | 705 | 11945 | 1755 |
| Dutch-owned multinationals | 1530 | 310 | 6740 | 640 |
| Non-multinational firms | 384295 | 42955 | 99615 | 1050685 |
5.4Activity of Dutch-owned multinationals abroad
Just as the Netherlands attracts foreign-owned multinationals, Dutch-owned multinationals are venturing into international markets. This section is the counterpart to section 5.3 and focuses on the subsidiaries of Dutch-owned multinationals abroad. In which countries do Dutch-owned multinationals operate? How many jobs do Dutch-owned multinationals create abroad? And how high is the labour productivity of Dutch-owned multinationals in other countries?
Most Dutch subsidiaries abroad are still located in Germany
Most subsidiaries of Dutch-owned multinationals continue to be located in Germany (see Figure 5.4.1). Although the number of subsidiaries of Dutch-owned multinationals in Germany decreased by around 7% from 2022 to 2023, to 3,368 enterprises, Germany remains in first place. Also, the total number of Dutch subsidiaries abroad declined. There were 22.7 thousand Dutch subsidiaries worldwide in 2022, but the number fell to 20.9 thousand in 2023.
Belgium is also a centre of activity for Dutch subsidiaries. Whereas in 2022 the US ranked second with 2,469 enterprises, it fell to third place in 2023 with 2,177 enterprises. With 2,236 enterprises in 2023, the number of subsidiaries of Dutch-owned multinationals in Belgium remained fairly stable compared to the previous year and Belgium climbed to second place among countries with the highest number of subsidiaries of Dutch-owned multinationals. The vast majority of Dutch subsidiaries in Belgium (one in three) are active in the wholesale and retail sector.
| Bestemmingen | 2023 * | 2022 |
|---|---|---|
| Top 10 countries subsidiaries |
. | . |
| Germany | 3368 | 3630 |
| Belgium | 2236 | 2215 |
| US | 2177 | 2469 |
| UK | 1378 | 1506 |
| France | 953 | 1005 |
| Spain | 907 | 930 |
| Poland | 861 | 968 |
| China | 582 | 714 |
| Italy | 444 | 536 |
| Czechia | 406 | 300 |
| Investment countries BRICS |
. | . |
| India | 240 | 235 |
| Brazil | 237 | 274 |
| South Africa | 164 | 194 |
| Russia | 114 | 158 |
The BRICS countries (originally comprising Brazil, Russia, India, China, and South Africa) aim to provide a counterbalance to dominant economic powers such as the US. The year 2023 was the year before the expansion of the BRICS countries, and during the annual summit of leaders in Johannesburg it was announced that Egypt, Ethiopia, Iran, Saudi Arabia and the UAE were to become members in 2024. Argentina later withdrew its plans for membership (Council of Councils, 2023).
The number of subsidiaries of Dutch-owned multinationals in BRICS countries, however, remains in stark contrast with the number of subsidiaries of Dutch-owned multinationals in the US. The largest numbers of subsidiaries are in China (582), India (240) and Brazil (237), respectively. Together, the number of subsidiaries in those three countries is approximately half of the number of Dutch subsidiaries in the US. While many Dutch subsidiaries in China and Brazil are active in the wholesale and retail trade sector (41% and 25% respectively), in India many are active in the information and communication sector (28%).
Largest number of employed persons at Dutch subsidiaries in the US
At 457 thousand people, the largest number of employed persons were employed by subsidiaries of Dutch-owned multinationals in the US in 2023 (see Figure 5.4.2). Germany ranked second, with 171 thousand persons on the payroll. While virtually all the top 10 investment countries saw a decline in the number of employed persons from 2022 to 2023, Belgium fared better. Belgium actually saw a slight increase in employment levels, to a total of 98 thousand employed persons. Naturally, a subsidiary’s employment levels are highly dependent on the sector and the associated labour intensity.
| Bestemmingen | 2023 * | 2022 |
|---|---|---|
| Top 10 countries subsidiaries |
. | . |
| Germany | 171 | 187 |
| Belgium | 98 | 96 |
| US | 457 | 484 |
| UK | 100 | 106 |
| France | 104 | 105 |
| Spain | 69 | 49 |
| Poland | 83 | 100 |
| China | 67 | 81 |
| Italy | 76 | 85 |
| Investment countries BRICS |
. | . |
| Brazil | 109 | 120 |
| South Africa | 7 | 9 |
| Russia | 9 | 21 |
| 1)Due to confidentiality obligations, no figures can be disclosed for Czechia, a top 10 destination country, and India, a BRICS country. | ||
It is also worth noting that employment at Dutch subsidiaries in Brazil is high. With 109 thousand employed persons in 2023, Brazil comes a close second to Germany in terms of employment by Dutch subsidiaries. Approximately 40% of these employed persons were active in enterprises in the manufacturing sector. There are many reasons why Brazil appeals to Dutch-owned multinationals. The country is associated with the Mercosur trade bloc (CBS, 2025), which facilitates economic integration across its South American member states Argentina, Brazil, Paraguay and Uruguay. With a population of over 200 million, the country also provides both a large consumer market as well as a substantial labour force. In addition, the country’s many natural raw materials and various stimulus measures implemented by the Brazilian government add to its attractiveness (Flanders Investment & Trade, 2025; RVO, 2025).
Largest turnover per FTE at Dutch subsidiaries in France
Figure 5.4.3 shows the level of labour productivity of Dutch subsidiaries, measured in turnover per full-time equivalent (FTE).noot3 At over €1 million per FTE, the largest turnover per FTE was generated by subsidiaries of Dutch-owned multinationals in France. Subsidiaries of Dutch-owned multinationals in the US and the UK were in second and third place, with €811.6 thousand and €522.5 thousand per FTE respectively.
| Bestemmingen | 2023* | 2022 |
|---|---|---|
| Top 10 countries subsidiaries |
. | . |
| Germany | 518 | 552.6 |
| Belgium | 448.8 | 460.6 |
| US | 811.6 | 663.7 |
| UK | 537.1 | 462.4 |
| France | 1012.8 | 757.7 |
| Spain | 522.5 | 497.5 |
| Poland | 276.8 | 222.3 |
| China | 370.4 | 326.8 |
| Investment countries BRICS |
. | . |
| Brazil | 245.1 | 223.7 |
| South Africa | 463.7 | 379.1 |
| Russia | 215.2 | 281.6 |
| 1)Due to confidentiality obligations, no figures can be disclosed for Czechia, a top 10 destination country, and India, a BRICS country. | ||
While the number of subsidiaries and the number of employed persons at Dutch-owned multinationals in most BRICS countries was still relatively limited in 2023, the turnover per FTE generated by Dutch subsidiaries in these countries is relatively high compared to that of the top 10 investment countries. The turnover per FTE at Dutch subsidiaries in South Africa (€463.7 thousand turnover per FTE) is comparable to that of Dutch subsidiaries in the top investment destination Belgium, which generated a turnover per FTE of €448.8 thousand. It should also be noted here that the level of turnover per FTE is highly dependent on the sector in which the subsidiary operates.
5.5References
References
British Business Bank (2025). Due diligence checklist – buying a business. British Business Bank. Accessed on 28 May 2025.
CBS (2025, 28 March). Netherlands is EU’s largest importer of goods from Mercosur countries Statistics Netherlands. Accessed on 25 May 2025.
Council of Councils (2023). The BRICS Summit 2023: Seeking an Alternate World Order? Council of Councils. Accessed on 28 May 2025.
Creusen, H., Kox, H., Lejour, A., & Smeets, R. (2011). Exploring the margins of Dutch exports: A firm-level analysis. The Economist, 159(4), 413.
Flanders Investment & Trade (2025). Exporteren naar Brazilië. Flanders Investment & Trade. Accessed on 28 May 2025.
Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations. Behaviour Research and Therapy, 41(7).
Kashefi-Pour, E., Amini, S., Uddin, M., & Duxbury, D. (2020). Does Cultural Difference Affect Investment–Cash Flow Sensitivity? Evidence from OECD Countries. British Journal of Management, 31(3), 636–658.
OESO (2025). FDI main aggregates, BMD4. [Dataset]. Accessed on 9 July 2025.
Olsthoorn, S., & van Wijnen, J. F. (2022). Het beschermen van hightechindustrie is een balanceeract. Het Financieele Dagblad. Accessed on 28 May 2025.
RVO (2024). Veilig en weerbaar ondernemen: Wet Vifo. Netherlands Enterprise Agency. Accessed on 28 May 2025.
RVO (2025). Zakelijke kansen in Brazilië. Netherlands Enterprise Agency. Accessed on 28 May 2025.
Wagner, J. (2007). Exports and productivity: A survey of the evidence from firm-level data. World Economy, 30(1), 60–82.
Noten
The total (non-financial) business economy comprises sections B up to and including N, excluding K and including S95 of the Dutch Standard Industrial Classification (SBI 2008).
The values of goods in this chapter refer to import and export values based on the concept of border crossing, including re-exports and excluding quasi-transit trade.
The Outward Foreign Affiliates Statistics (OFATS) only show the turnover per foreign subsidiary, which is why it was decided to opt for a labour productivity measure based on turnover per FTE as opposed to value added per FTE.