Beyond borders: how Japan–Netherlands ties are shaping Europe’s sustainable future

As Japanese corporations look to expand into Europe, the Netherlands is often the most attractive entry point. This is not only for logistical reasons; it’s a choice that is rooted in centuries of trusted ties between the two countries and reinforced by unmatched connectivity in today’s business landscape. For Japanese leadership teams seeking operational certainty from day one, the Netherlands offers a proven route to success.

The historical relationship between Japan and the Netherlands

In 1609, the Dutch East India Company received a trade permit from Japan, marking the start of a unique commercial relationship. For over two centuries, the Dutch were Japan’s sole western trading partner, operating through the island of Dejima during Japan’s isolationist era.

This bond was formalised in 1858 with the Treaty of Amity and Commerce, laying the foundation for diplomatic and economic cooperation that continues to this day.

The historical connection creates a sense of familiarity and confidence for Japanese leadership teams. It’s not just about business—it’s about shared values and predictability.

With over 400 years of these historic ties, Japanese companies are today reaffirming their confidence in the Netherlands as their European base. In business, trust matters—and the Netherlands has earned Japan’s trust through centuries of business partnership and a reputation for reliability.

The Netherlands as the EU gateway for Japan

The Netherlands’ reputation for objectivity and diplomacy makes it an attractive destination for investors from around the world. It has an advantageous geographic location in the centre of western Europe, while the Port of Rotterdam, Schiphol Airport and world-class railways provide seamless access to European markets.

When we talk about a gateway, we mean market access, talent and administrative predictability. Japanese companies can operate with confidence knowing they have connectivity and clarity across the EU.

Japanese companies looking to expand into the EU can set up their RHQs in the Netherlands, knowing they will have excellent infrastructure and advanced digital connectivity that supports cross-border operations and digital transformation.

Transparent regulations and a stable business environment reduce regulatory complexity, while a workforce fluent in English simplifies communication and integration.

The Netherlands ranks fourth in Europe for being home to the highest number of Japanese companies, after Germany, the UK and France (Ministry of Foreign Affairs of Japan, Survey of Japanese Companies Overseas).

With the long history between the two countries, there is a large, active Japanese community living in the Netherlands, consisting not only of Japanese professionals, but also their families, who join them for several years before returning to Japan. This community provides strong cultural advantages for Japanese companies and their employees.

Manager-level expats in large Japanese companies typically rotate every four years, though cycles can range from three to five years depending on the industry. For R&D roles, tenures tend to be longer.

The Dutch government offers corporate tax incentives for companies involved in research and development (R&D), including the WBSO and Innovation Box. This has led to many Japanese companies setting up R&D centres in the country, particularly in sectors such as food and agriculture, semiconductors, renewable energy, life sciences and materials.

The benefits of TMF Netherlands Japan Desk

While the Netherlands offers the ideal environment for Japanese companies to do business, he execution of a business plan requires expertise. As a global service provider, TMF Group has local offices in both Japan and the Netherlands. But in the Netherlands, there is an additional solution developed specifically to support the unique relationship between the two countries.

TMF Netherlands Japan Desk in Amsterdam works closely with our office in Tokyo to deliver unrivalled services to the Japanese business community in the Netherlands. With Japanese-speaking personnel and a deep understanding of Japanese culture and relationships, this support desk provides exclusive benefits by partnering with TMF Japan for seamless cross-border delivery.

• One global engagement: Japanese corporates benefit from consistent service and communication under a unified framework.
• Local depth, global reach: the Japan Desk handles EU compliance and administration, offering physical access to RHQs in the Netherlands and local experts in both countries.
• Day-one operational readiness: from entity setup to ongoing governance, this system simplifies complexity so leadership teams can focus on growth.

Our model is built on collaboration. TMF Netherlands Japan Desk works alongside our extension desk in Tokyo as one team, offering a huge advantage that not many of our competitors have.

Japanese RHQs in the Netherlands

Many Japanese multinationals centralise certain back-office functions in the Netherlands within their regional headquarters (RHQs), particularly in sectors such as automotive, electronics and industrial manufacturing. From a corporate government perspective, these RHQs are the operational hubs where the highest level of business decisions are made.

Centralising back-office functions in one jurisdiction reduces risk and cost across multiple EU countries while streamlining reporting, allowing for easier management of complex regulatory landscapes.

However, certain functions may not be centralised in RHQs and must operate in their respective countries, such as payroll and the "last mile" of accounting and tax services. An alternative option is for organisations to outsource these functions to the local offices of a third-party vendor, such as TMF Japan.

In this case, a Japanese RHQ in the Netherlands can manage these relationships centrally through the TMF Netherlands Japan Desk, giving them increased oversight over their operations.

Japanese firms often focus first on the centralisation of group finance, banking and treasury functions. For our clients, it starts with access to the Japan Desk.

Talk to us

Planning EU (re)entry, expansion or RHQ consolidation? Our team of experts in the Netherlands is uniquely placed to help you extend your business into the Netherlands, or from the Netherlands into the EU beyond.

Find out more about our TMF Netherlands Japan Desk capabilities – speak to an expert today.