Amsterdam struggles to attract foreign businesses as U.S. investors withdraw
The Amsterdam metropolitan area attracted just 49 foreign businesses in 2024, the lowest number on record, according to Amsterdam In Business. These firms created 1,458 jobs, reflecting a sharp decline from 84 companies and 2,400 jobs in 2023, and a significant drop from the pre-pandemic peak of 161 firms and 5,800 jobs in 2019, according to Het Parool.
The trend follows Amsterdam’s policy shift in 2022, which narrowed foreign business recruitment to focus on sustainability, innovation, and low-skilled job creation. Before this change, annual arrivals consistently exceeded 100, including 131 companies in 2021.
The steepest decline comes from U.S. businesses, traditionally the largest investors in the Netherlands. Amsterdam Economic Affairs alderman Sofyan Mbarki attributes this to policy shifts under returning U.S. President Donald Trump and the Inflation Reduction Act, a 2022 law that provides 782 billion dollars in subsidies and tax breaks to encourage domestic investment in the United States. “The national government must take the lead in tackling these challenges,” Mbarki told Het Parool. “The current cabinet fails to support innovation and lacks a long-term vision for a sustainable economy.”
Other economic pressures also deter foreign investment. High inflation from 2023, rising interest rates, an overstretched electricity grid, and Amsterdam’s ongoing housing crisis make it increasingly difficult for companies to settle in the city.
Additionally, the Dutch government’s reduction of tax incentives for expats and tech employees further discourages investment. For the first time since 2008—excluding the COVID-19 years of 2020 and 2021—the number of international employees registering with expat center INAmsterdam fell by a third to just over 14,000 in 2024.
While Amsterdam In Business—a partnership between the municipalities of Amsterdam, Amstelveen, and Haarlemmermeer—reports that most new firms align with the city’s revised economic priorities, overall business growth remains stagnant. Key arrivals in 2024 include Decathlon’s tech hub for material reuse, medtech firm Lovance’s cancer research division, and Tract’s sustainability analytics for the food industry. However, expansion among existing foreign firms has slowed dramatically. Only 13 companies that previously established themselves in the city expanded last year, creating 589 jobs—down from 15 firms and 1,015 jobs in 2023.
Beyond Amsterdam, the Netherlands as a whole reportedly faces mounting challenges in its tech sector, raising concerns that regulatory burdens and a lack of strategic investment are pushing businesses elsewhere. Tech entrepreneurs warn that startups are dying under “idiotic” regulations, preventing the country from playing a meaningful role in global technological advancements such as artificial intelligence. “We hardly play a role in the biggest technological development, AI,” Prince Constantijn, special envoy for startup organization TechLeap, previously told NOS Nieuwsuur.
The struggles of Dutch startups are also reportedly compounded by difficulties in securing venture capital. Billion-dollar companies drive innovation, but Dutch entrepreneurs say the regulatory climate stifles their ability to grow. Job van der Voort, founder of Remote, a billion-dollar company registered in the U.S., advised against starting a business in the Netherlands. “We are going under because of idiotic regulations and legislation,” he told Nieuwsuur.
He cited restrictive labor laws as a major problem, including requirements that employers must continue paying salaries for two years if an employee becomes ill. “That is impossible for a startup that can grow quickly but also shrink quickly,” he said.
In response to these concerns, a new initiative from TNO, TechLeap, and Invest-NL aims to close the gap between Dutch startups and their international competitors. The organizations will focus on scaling tech firms in fields where the Netherlands has strong research capabilities, such as quantum computing, semiconductors, and photonics.
The plan includes funding, strategic support, and guidance to help Dutch startups compete globally. Despite this effort, analysts warn that without broader regulatory reform and increased venture capital, the Netherlands risks falling further behind in the global tech race.
