By Bart le Blanc and Daan Goedemoed

In recent years, a growing number of Philippine energy companies — from electricity and water providers to port and infrastructure operators — have begun exploring legal and corporate structures in the Netherlands.  This trend reflects a strategic shift toward internationalization, driven by the Netherlands’ blend of legal certainty, tax efficiency, and access to global capital.  But what makes the Netherlands a relevant jurisdiction for Philippine businesses, especially in the energy sector?

Gateway to Europe (and the rest of the world)

Legal Certainty and Global Reach

The Netherlands offers a well-established legal system, internationally accepted contract law, and access to arbitration institutions like the Netherlands Arbitration Institute (NAI). Dutch holding companies are widely used in global energy and infrastructure projects, and the country’s treaties and regulations are designed to facilitate — not frustrate — international business.

Moreover, a Dutch entity provides access to the European Union’s internal market, enhancing trade and investment opportunities across the continent.

In addition to market access, the Netherlands connects companies to European innovation programs. In areas such as sustainable energy, mobility, and the circular economy, businesses, research institutes, and governments collaborate closely. For Philippine energy companies, this offers direct entry into networks and projects that can support international growth strategies.

Access to Capital Markets

Another advantage of structuring through the Netherlands is access to international capital. Dutch entities can issue Eurobonds, attract private placements, and tap into institutional investors across Europe and North America. The Netherlands’ reputation for legal stability and transparency often results in better financing terms and greater investor confidence.

For Philippine energy companies — which often require substantial upfront investment — a Dutch financing vehicle can be a strategic asset. It allows them to raise funds internationally while maintaining operational control locally. This advantage is further supported by a favorable tax treaty between the Philippines and the Netherlands, designed to prevent double taxation and encourage cross-border investment.

Legal Protection Through the BIT

Beyond tax, Dutch structuring gives Philippine energy ventures access to the protections of the Bilateral Investment Treaty (BIT) between the Philippines and the Netherlands. These protections are granted by a host State (e.g., the Netherlands) to investors from the other contracting State (e.g., the Philippines) and are in addition to contractual or statutory rights available under Philippine law.

Key protections typically include fair and equitable treatment, protection against expropriation, and access to international arbitration. Importantly, under the Netherlands–Philippines BIT, disputes may be submitted to an arbitral tribunal outside of the Philippines, rather than being left solely to domestic courts. Arbitral awards are also generally more enforceable worldwide than local court judgments, which strengthens the investor’s ability to seek redress.

From a practical perspective, these treaty rights can serve as valuable leverage in negotiations with governments. They are sometimes even required by project financiers and lenders as a precondition for funding, given the additional security they provide. For energy companies operating in high-stakes environments, this kind of protection can therefore be critical.

Structuring investments through the Netherlands can unlock access to a broader treaty network as well. The Netherlands currently has more than 75 BITs in force, compared with just 32 for the Philippines. In general, a company incorporated in the Philippines cannot bring an investment treaty claim against the Philippines; but by structuring through the Netherlands, Philippine energy companies can significantly expand their options for legal protection and strengthen their negotiating position vis-à-vis local regulators.

Objective Trends and Data

According to Statistics Netherlands (CBS), there were over 17,000 companies in the Netherlands under foreign control in 2021. While the exact number of Philippine-owned entities is not disclosed, anecdotal evidence and advisory data shows a growing interest from Southeast Asian firms, particularly in sectors like energy, logistics, and infrastructure.

The Netherlands Foreign Investment Agency (NFIA) has also reported a steady increase in foreign companies establishing Dutch entities for holding, licensing, and financing purposes — often without local staff, indicating a strategic rather than operational presence.

A Strategic Gateway?

As the Philippine energy sector continues to grow and globalize, the Netherlands stands out as a strategic jurisdiction. Whether through tax efficiency, legal protection, or access to capital, Dutch corporate structuring offers tangible benefits that can help Philippine companies thrive internationally.

This is not about replacing local operations — it’s about complementing them with international tools that enhance competitiveness, resilience, and reach.

About the Authors

Bart Le Blanc
Bart is a Partner at Norton Rose Fulbright LLP and a seasoned tax advisor based in Amsterdam, with over 20 years’ expertise in international corporate taxation. Passionate about the energy sector and renewables, Bart blends deep technical knowledge with strategic insight to help clients navigate complex tax landscapes worldwide. His experience spans Latin America and Africa, including Mexico and Brazil, advising on everything from global tax planning and transaction structuring to tax litigation and transfer pricing. Bart’s guidance extends to private equity transactions, empowering clients to optimize their worldwide tax positions with precision and confidence.

Daan Goedemoed
Daan is an Associate at Norton Rose Fulbright LLP and a dynamic tax lawyer based in Amsterdam, renowned for delivering sharp, practical solutions in Dutch and international tax advisory for multinational enterprises. With hands-on experience across Europe, South America, and Asia, Daan specializes in the energy sector, bringing fresh perspectives to complex challenges. A frequent contributor to leading tax publications, he offers insightful commentary on Dutch, EU, and international tax developments. Whether navigating cross-border transactions, tackling intricate compliance issues, or designing strategic tax structures, Daan combines technical expertise with a pragmatic, results-driven approach.