A quick history of Benelux

In 1948, after World War II, Belgium, Luxembourg and the Netherlands formally established a customs union, known as “Benelux”, to strengthen their economies after the war. The Benelux Economic Union treaty was signed in 1958 and enacted in 1960.  

The treaty built the first free international labour market and provided for tax-free internal trade and movement of capital and services. Additionally, the economic union of the three countries set standard external trade tariffs and later abolished borders between Belgium, Luxembourg and the Netherlands. 

Benelux as a key European trade hub 

Benelux’s economic union was an example of establishing an international customs union, such as that of the European Economic Community (EEC) and, later on, the European Union (EU), of which the three are original member states.  

The region is an essential economic hub in Europe due to many factors, primarily because of its strategic location. The Port of Rotterdam, Europe’s busiest, is situated in the Netherlands and seamlessly facilitates the movement of goods across Europe and beyond. 

Additionally, Benelux’s good relationships with global giants, like the US and China, position the region as an economic powerhouse amid the region’s geographical size. Its unified economic climate and stable political environment also effectively attract investors both within the EU and internationally.  

The advantages of doing business in Benelux 

Location and logistics: As mentioned above, Benelux boasts easy connectivity to global markets, thanks to the Port of Rotterdam, Port of Antwerp, major waterways, and transportation routes, considered some of Europe’s most vital gateways. These are supported by the region’s highly developed infrastructure. Benelux has direct access to the rest of the EU, the UK and the US.  

Business-friendly environment: Benelux has gained investor confidence due to its business-friendly regulations. For example, the company formation process in Benelux is straightforward and involves minimal bureaucracy. The three countries also offer flexible business structures, tax holidays and innovation tax credits.  

Skilled and multicultural workforce: Benelux countries emphasise the importance of education, resulting in a highly educated population, specifically in the fields of Science, Technology, Engineering and Mathematics (STEM). Plus, due to the free movement of people within these three countries, the region has a multicultural and multilingual workforce, beneficial for businesses with international activities. Benelux’s openness to global talent also attracts the best talent worldwide.  

Support for innovation and technology: The governments of Belgium, Luxembourg and the Netherlands provide financial assistance for research and development projects across various sectors, especially to foster the growth of specific sectors like technology, health sciences, energy and other innovation.  

Seamless entry to Benelux with Bolder Group 

Bolder Group has a strong presence in the Benelux region, with offices in Luxembourg and the Netherlands. You can count on our professionals to help you navigate the business and regulatory landscape in the area and learn more about the business opportunities there.  

From business support and market entry to company formation and ongoing regulatory compliance, we assist international companies in penetrating the global market through their Benelux entry.  

For more information about doing business in Benelux and how we can tailor our solutions to your business requirements, contact our Luxembourg or Netherlands team. 

Bolder Group is co-organising a panel discussion in Istanbul, Turkey, on 21 May 2024. This discussion will focus on the business opportunities in Benelux for Turkish companies, family offices and asset managers. Our esteemed panellists will guide participants through the region’s business environment and the ESG landscape in the EU.  

If you are interested in joining, please contact the following Bolder Group representatives for an exclusive invite: Tim van Santen or Jeroen van Zanten.

This discussion on doing business in Benelux is co-presented by Bolder Group, Orange Clover, Ebury and Taxconn.