The Netherlands: Worlds Biggest Tax Haven?

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The Netherlands, a fine country of flowers, windmills, and loose regulations around the finer things in life. This country is in many ways like a lot of very developed European economies we have explored earlier on the channel, very high living standards, good social mobility a strong economy and healthy inequality but the Netherlands hides a bit of a secret behind its lovely flowerful smile, it is one of the largest tax havens in the world.

But how does this make any sense? The Netherlands has a high-income tax rate of over 50% for top earners and a corporate tax rate of 25%. And there are not even particularly strict laws around things like banking privacy (like there are in countries like Switzerland) ... so if all of this is making the Netherlands sound like a pretty terrible tax haven all in all, why is it so popular?

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#Netherlands #TaxHaven #Economics

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Sources & Citations -

Loomis, S.C., 2011. The double Irish sandwich: Reforming overseas tax havens

Thorne, D., 2013. The Double Irish and Dutch Sandwich tax strategies: Could a general anti-avoidance rule counteract the problems caused by the utilization of these structures?.

Brothers, J.P., 2014. From the Double Irish to the Bermuda Triangle. Tax Analysts

Van Dijk, M., Weyzig, F., and Murphy, R., 2006. The Netherlands: a tax haven?

Weyzig, F., 2013. Tax treaty shopping: structural determinants of Foreign Direct Investment routed through the Netherlands. International Tax and Public Finance

Gordon, R.A., 1981. Tax havens and their use by United States taxpayers-An overview. Intertax

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[homemadesocks]

Thanks ee for teaching me how to dodge taxes for my multinational company

[vianabdullah]

4:09 I do appreciate the annexation of Flanders.

[astelija]

5:42 that Runescape coin pile earned my like

[koffieboon]

As a dutch person, I thoroughly enjoyed all the stock footage of Germany in this video

[jezusbloodie]

I would really love to see a video on the Dutch East Indies Company, the first megacorperation and the largest company that has ever existed. the economic practises that were first used with them are really interesting, but I don't understand most of it

[dumfaded]

My dad used to work with big hedge funds and private equity firms for 20+ years. after he passed away i have heard all the stories of his work life, my dad was really really good at dodging taxes for other people, he used to go to the cayman islands alot and even moved us to saint thomas in the carribean when i was younger, ill tell you rn Netherlands and luxembourg and even ireland arent even close to the scale and level of tax skirting that is going on in the carribean islands.

[MattMarshallUK]

Great video, although I think you missed a huge point from your final thoughts... The injustice is that small companies don't have the revenue to benefit from these tax models, meaning new, independent businesses are almost always going to struggle to compete with huge multinationals. The result is bland, carbon copy highstreets with Starbucks on every corner and a lack of diversity of new products and services. For anyone who cares about the subject, I highly recommend the book The Hidden Wealth of Nations by Gabriel Zucman.

[keeswillems]

this is an amazingly informative video, I’m Dutch myself and this is by no means common knowledge here but most people interested in politics know this.

[dinsel]

Tax Evasion.

This is one of the major reasons why you can not just set up a small business and compete with multinational companies.

[iedokpolor]

it's always great to see when they give the Nederlands a part of Belgium

[karljohanfelsagerjakobsen]

What about making a video about Denmark. It's a country like norway but without the oil, so you can see how the polecies work without the oil.

[boyan.guitar]

After watching so many of your videos what I love the most about your work is that I feel that you have a good moral compass. I really hope you will inspire a future generation of Economists to develop one like yours too. Very informative and unbiased videos, absolutely love them, thank you! Keep on keeping on!

[szymonnowak]

Last time I was this early, Nauru was still rich

[manhoosnick]

And after all this when I see my father crying in secret because since Amazon launched in France, his shop sales are down by 90%... how not to be angry.

[MrNnex]

0:31 ehm thats Limburg Germany not the Limburg in the Netherlands... :D

[Drrolfski]

Cool, would love to see a video about the main Dutch economy though.

[djVania]

I wonder if there is any particular Economy books that you`d recommend us to read? Maybe make a short list?

Thanks a lot for the content that you do. I really really like it.

[petepetersen]

25% = Here to see a video about shell corps, tax "minimisation" and economic regulations.

75% = I'm Dutch! I like seeing video's on YouTube about my country

[Bedinsis]

I would like to see the economics of running a refugee camp.