Why to consider a regional treasury center in the Netherlands
The country’s business-friendly environment, stable economy and strong labor pool can benefit organizations streamlining their international treasury operations.
As North American companies expand into Europe, establishing a regional treasury center (RTC) can support their growth strategies while making cash management more efficient. The Netherlands’ central location, welcoming business environment and attractive labor pool make it an appealing place for an RTC.
What’s the main goal of RTCs? They help streamline your international treasury operations and place all of your European funding, liquidity and risk management in one location. RTCs also have local experts on the ground—a helpful resource for companies operating several time zones away. The alternative is a fragmented treasury organization that uses time-intensive processes across international borders, creating a maze of systems, currencies and treasury tools.
Aziz Boulahiati, International Coverage Executive, Commercial Banking
Benefits of regional treasury centers
Consolidating your European treasury operations into a single regional center can help:
- Increase productivity through simplified processing, rationalized bank accounts and fewer transaction fees
- Reduce risk by standardizing processes, leveraging technology, managing foreign-exchange transactions, and controlling finance costs
- Lower operating cash needs and improve returns on available funds
- Decrease unnecessary borrowing by pooling cash-rich subsidiaries or locations with those that are less liquid
The Netherlands offers corporate treasury stability and is an attractive location for regional treasury operations and RTCs.
Why you should consider the Netherlands
J.P. Morgan opened its Amsterdam office in 1962. In the six decades since, the firm has expanded operations there to serve as one of several full-service hubs in Europe.
“The Netherlands has all the things a company is looking for—central location, infrastructure, talent, a highly skilled IT resources network,” says Aziz Boulahiati, International Coverage Executive, Commercial Banking, at J.P. Morgan in Amsterdam. “That’s why—in addition to other main hubs in Europe—we’ve also invested here. And as an established member of the Dutch financial community, our local knowledge can help clients navigate the complexities of a new market.”
The World Economic Forum ranked the Netherlands fourth in The Global Competitiveness Report 2019, behind only Singapore, the United States and Hong Kong. The Netherlands maintains strong and well-established financial and judicial systems. Among the measures the Dutch government has taken to attract foreign businesses:
- Companies can negotiate the tax consequences of an investment beforehand.
- Qualifying dividends and capital gains are 100% tax-exempt.
- Certain skilled foreign employees who relocate to the Netherlands can receive a 30% personal income-tax advantage.
- The Netherlands has a dedicated commercial court to resolve complex international commercial disputes with proceedings and judgments in English.
With Europe’s largest seaport and one of its busiest airports, the Dutch infrastructure can move people, goods and data effectively.
- A network of high-speed railroads link Dutch cities and other major European destinations.
- Modern roads make the Netherlands easy to navigate by car or bicycle.
- Some of the fastest internet speeds in Europe can support day-to-day operating and communications needs.
It’s got talent
The Netherlands offers businesses access to educated, tech-savvy workers.
- The country invests heavily in education and health and has a productive workforce, making it an attractive place to maintain a staff.
- English is the de facto business language of the Netherlands, and most Dutch citizens are multilingual.
How J.P. Morgan can help
When establishing a regional treasury center, it helps to have a banking partner with extensive local experience. No matter the size of your organization, J.P. Morgan’s International Banking team can provide solutions that scale to your company and the breadth of its global footprint.