Declining Attractiveness for Expats and Businesses: Challenges Facing the Netherlands

The Netherlands is losing its appeal among expatriates, with a growing number of businesses contemplating relocation. According to Intelligence Group, a market researcher, the country is increasingly becoming a secondary option for knowledge and labor migrants from Europe, with over ninety percent of expats and migrant workers not even considering working there. Business organizations VNO-NCW and MKB Nederland also note a rising trend of entrepreneurs considering leaving the Netherlands.

Director Geert-Jan Waasdorp of Intelligence Group attributes this decline in attractiveness to various factors such as political instability, challenges in the housing market, unethical employment agencies, and escalating social intolerance. He emphasizes the dependency of the Netherlands on key regions like Amsterdam and Eindhoven, as well as prominent companies such as ASML and Booking.com.

Intelligence Group has been monitoring European expats' preferences since 2007, and the current sentiment towards the Netherlands is worse than ever, according to Waasdorp. He anticipates that the impact of this trend will surpass that of past political movements like that of Wilders, highlighting increasing competition from other countries. While Polish migrants show relatively higher interest in the Netherlands, their top choices remain Germany and England.

Despite these challenges, some experts stress the importance of knowledge and labor migrants for the Dutch economy. Figures like Klaas Knot, the president of De Nederlandsche Bank (DNB), and Jeroen Tiel, CEO of Randstad's Dutch branch, emphasize the significant role migrants play in addressing labor shortages, especially in sectors like technology and healthcare.

Additionally, the business climate in the Netherlands is causing concern among entrepreneurs, with nearly one in five contemplating leaving. Issues cited include government stability, regulatory burdens, staff shortages, and taxes. The increasing polarization in society also contributes to this unease among business owners. This sentiment is reflected in declining investment rates, with approximately a quarter of entrepreneurs opting not to invest in the coming year, posing further economic challenges as highlighted by VNO-NCW and MKB-Nederland in their recent communication to parliament.