Why Start a Fund in the Netherlands?
Updated on Wednesday 31st May 2017
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The Netherlands ranks as one of the top destinations for investment purposes. Foreign investors interested in how to start a fund in this country can benefit from the political and economic stability of the jurisdiction, bilateral agreements and tax incentives applicable to both commercial companies and investment funds.
Asset pooling in the Netherlands
Asset pooling refers to the investments which are performed by more investors, who prefer to create a legal entity under which they can pool their financial assets with the purpose of performing investment stategies that will provide a high return on investment. In this sense, investors may be interested in starting a hedge fund in the Netherlands, but they can also set up one of the following:
• pension funds;
• insurance companies.
At the moment, the Netherlands is a priority jurisdiction for pooled assets, due to numerous tax regulations which are favorable to this type of investments.
A developed financial sector
The financial system in the Netherlands is comprised of numerous fields. Most of the financial activities are carried out in Amsterdam, the city in which large international financial corporations have set their operations. At the same time, very well reputed Dutch banks have their headquarters in this city.
Those who are interested in how to start a fund in the Netherlands must know that the jurisdiction is a top destination for entities such as:
• private equity investments;
• venture capital funds;
• trust fund managers.
Tax advantages in the Netherlands
Regardless if the vehicle chosen for incorporation is registered as a hedge fund startup or as another available type of fund, the investors will benefit from several tax advantages.
For example, the Netherlands does not apply the value added tax (VAT) on the investment funds registered here. Most of the Dutch funds do not qualify for this tax. However, various types of funds, such as the UCITS structure, can be imposed with the VAT on the services performed by the fund’s custodians, but the fund may qualify for a VAT exemption.
Businessmen are invited to contact our team of affiliates in the Netherlands for more details on the main advantages for starting a fund in this country.