ACCESS BENELUX A Guide to Doing Business in the BENELUX Countries 1 Table of Contents 1. INTRODUCTION ........................................................................................... 4 A NOTE ON NAMING CONVENTIONS .............................................................................................. 4 WHY THIS MARKET IS IMPORTANT ............................................................................................... 4 PURPOSE OF THE REPORT.......................................................................................................... 5 HOW IT WAS COMPILED .............................................................................................................. 5 2. CRITICAL SUCCESS FACTORS ................................................................. 6 INTRODUCTION .......................................................................................................................... 6 BUSINESS CULTURE AND PRACTICE ............................................................................................ 6 LANGUAGE IN THE BENELUX MARKET .......................................................................................... 6 WHEN IN BELGIUM ..................................................................................................................... 7 WHEN IN THE NETHERLANDS ...................................................................................................... 8 WHEN IN LUXEMBOURG ............................................................................................................. 9 CASE STUDY: BRINGING IRISH EXPERIENCE TO THE BENELUX MARKET...................................... 10 CASE STUDY: STARTING IN THE BENELUX MARKET................................................................... 12 3. STARTING IN THE BENELUX MARKET ..................................................... 14 INTRODUCTION .......................................................................................................................... 14 GEOGRAPHY ............................................................................................................................. 14 GETTING THERE ........................................................................................................................ 15 WHERE TO GO ........................................................................................................................... 16 EARLY-STAGE MARKET RESEARCH .............................................................................................. 16 NETWORKING IN THE BENELUX COUNTRIES ................................................................................. 17 BUILDING MARKET PRESENCE ..................................................................................................... 18 CASE STUDY: RESEARCH TO UNDERSTAND THE BENELUX BETTER ............................................ 20 CASE STUDY: BUSINESS DEVELOPMENT IN THE BENELUX MARKET ............................................ 22 CASE STUDY: PREPARING TO EXPORT TO THE BENELUX MARKET ............................................. 24 4. ROUTES TO MARKET ................................................................................. 26 INTRODUCTION .......................................................................................................................... 26 DIRECT SALES FROM IRELAND ................................................................................................... 26 CONSULTANTS/COMMERCIAL AGENTS ......................................................................................... 26 CASE STUDY: DEVELOPING RESELLER RELATIONSHIPS IN THE NETHERLANDS AND BELGIUM ...... 27 PARTNERS ................................................................................................................................ 28 DISTRIBUTION/LOGISTICS ........................................................................................................... 28 CASE STUDY: WORKING WITH DISTRIBUTORS IN THE BENELUX REGION ..................................... 29 JOINT VENTURES ....................................................................................................................... 30 CASE STUDY: BUYING INTO A BELGIAN PARTNER ......................................................................... 31 RECRUITING IN THE BENELUX COUNTRIES ................................................................................... 33 5. TAX AND LEGAL ISSUES IN THE BENELUX COUNTRIES ....................... 34 INTRODUCTION .......................................................................................................................... 34 BELGIUM ................................................................................................................................... 34 EMPLOYMENT-RELATED COSTS AND TAXES ................................................................................. 35 WITHHOLDING TAXES ................................................................................................................. 36 TAX INCENTIVES FOR BUSINESSES .............................................................................................. 37 THE NETHERLANDS ................................................................................................................... 37 SOCIAL SECURITY COSTS ........................................................................................................... 39 TAX INCENTIVES FOR BUSINESSES .............................................................................................. 40 LUXEMBOURG ........................................................................................................................... 40 TAX INCENTIVES FOR BUSINESSES .............................................................................................. 43 6. GROWTH SECTORS .................................................................................... 45 INTRODUCTION .......................................................................................................................... 45 FINANCIAL SERVICES ................................................................................................................. 45 2 TRANSPORT AND LOGISTICS ....................................................................................................... 46 CONSTRUCTION AND ENGINEERING ............................................................................................. 47 BIOTECHNOLOGY ....................................................................................................................... 49 DIGITAL MEDIA ........................................................................................................................... 49 OTHER SECTORS ....................................................................................................................... 50 7. SELLING TO THE GOVERNMENT IN THE BENELUX COUNTRIES ......... 51 INTRODUCTION .......................................................................................................................... 51 FRAMEWORK: BELGIUM.............................................................................................................. 51 BELGIUM’S PROCUREMENT SYSTEM ............................................................................................ 51 FRAMEWORK: THE NETHERLANDS .............................................................................................. 52 THE DUTCH PROCUREMENT SYSTEM........................................................................................... 52 FRAMEWORK: LUXEMBOURG ...................................................................................................... 52 LUXEMBOURG’S PROCUREMENT SYSTEM .................................................................................... 52 EU PROCUREMENT .................................................................................................................... 53 8. HOW ENTERPRISE IRELAND CAN HELP YOU SUCCEED IN THE BENELUX MARKET ........................................................................................................... 54 PRE-VISIT SUPPORT ................................................................................................................... 54 IN-MARKET SUPPORT ................................................................................................................. 54 INTERNATIONAL TRADE EVENTS PROGRAMME .............................................................................. 54 INTERNATIONAL MARKET CONTACTS ........................................................................................... 54 ADDITIONAL SUPPORTS .............................................................................................................. 54 FINANCIAL SUPPORTS ................................................................................................................ 55 CONTACTS IN BENELUX ............................................................................................................. 56 DIPLOMATIC AND CONSULAR INFORMATION FOR BELGIUM ........................................................... 57 DIPLOMATIC AND CONSULAR INFORMATION FOR THE NETHERLANDS ............................................ 57 DIPLOMATIC AND CONSULAR INFORMATION FOR LUXEMBOURG .................................................... 57 CONTACTS IN IRELAND ............................................................................................................... 57 ACKNOWLEDGEMENTS ..............................................................................................................