Expanding to the USA from Benelux: Complete Business Guide

As a business owner from Belgium, the Netherlands, or Luxembourg contemplating expansion into the American market, you’re about to embark on a journey beyond simply establishing a presence across the Atlantic. While businesses from these countries enjoy excellent reputations in the US for quality, innovation, and international expertise, expanding from the Benelux region to the US market involves navigating complex differences in business culture, legal frameworks, employment practices, and market dynamics that can significantly impact your success.

Executive Summary: Key Differences and Challenges

Expanding from the Benelux region (Belgium, the Netherlands, and Luxembourg) to the US market presents unique opportunities and challenges. While these three sovereign countries share some economic cooperation and specific common values with the US, each maintains its distinct legal and regulatory systems. This guide provides comprehensive insights into the key differences businesses from Belgium, the Netherlands, and Luxembourg must navigate for successful US expansion, drawing on our extensive experience helping companies from these countries establish successful American operations.

Critical Differences:

Market Scale: The US operates as 50 distinct markets under a federal system, with New York state alone having a GDP closely comparable to the entire Benelux region. While businesses in Belgium, the Netherlands, and Luxembourg operate in relatively compact markets totaling 29 million people, the US represents a fragmented market of 330 million with significant regional differences.

Legal Framework: The US business structure requires careful consideration between a C-corporation and an LLC, with state-specific regulations adding complexity compared to the individual systems of Belgium, the Netherlands, and Luxembourg, each with its own unique regulatory approaches.

Employment Costs: US employers face additional employment costs (25-40% above base salary) compared to employers in Belgium (35-50%), the Netherlands (35-45%), and Luxembourg (25-35%), but these costs are structured differently. US spending is focused on private healthcare instead of the various national healthcare systems found in each Benelux country.

Banking and Tax: The US uses a complex multi-jurisdictional sales tax system instead of the VAT systems implemented separately in each Benelux country. US banking often requires extensive documentation and in-person verification compared to the more digitally advanced banking systems standard in Belgium, the Netherlands, and Luxembourg.

Major Challenges:

Immigration Restrictions: Unlike the freedom of movement within the EU that Benelux businesses are accustomed to, expanding to the US requires navigating a complex visa system. While E-1/E-2 Treaty Trader/Investor visas offer options for Belgian, Dutch, and Luxembourgish nationals, the application process involves substantial documentation, investment requirements, and processing times of 3-5 months. H-1B visas for specialized talent face severe annual caps and lottery-based allocation, creating significant workforce planning challenges compared to the relative ease of cross-border mobility within the Benelux region.

Salary Expectations: US salaries in tech and specialized fields can be 30-40% higher than their equivalents in Belgium, the Netherlands, and Luxembourg, with significant regional variations. This requires careful compensation planning and budgeting, especially when establishing operations in high-cost markets like San Francisco or New York, where premiums can reach 70-75% above national averages.

Cultural Adaptation: The US business environment features different communication patterns than those typical in Benelux countries. While Dutch business culture is known for its directness and efficiency, American business communication often emphasizes enthusiasm and relationship-building language alongside content. Belgian and Luxembourgish professionals may find American business interactions more verbose, while Americans might perceive the concise Benelux approach as abrupt. These differences extend to negotiation styles, meeting structures, and feedback approaches, requiring conscious adaptation from Benelux executives and teams.

Compliance Complexity: Moving from the relatively unified regulatory frameworks within each Benelux country to the US multi-jurisdictional system presents significant operational challenges. Businesses must simultaneously manage federal regulations alongside varying state and local requirements for employment, taxation, and business operations. This multi-layered compliance environment contrasts sharply with the more centralized systems in Belgium, the Netherlands, and Luxembourg, necessitating additional administrative resources and specialized expertise.

Understanding Market Scale and Structure: A Benelux vs US Comparison

The substantial scale difference between the Benelux and US markets creates fundamental business strategy implications. While the combined Benelux region encompasses approximately 29 million people operating under relatively similar regulatory frameworks across three countries, the US market of 330 million people functions more like 50 distinct countries under a federal umbrella. This fundamental difference impacts everything from your market entry strategy to your operational costs and compliance requirements.

To put this in perspective, consider that New York state alone has a GDP closely comparable to the combined economic output of Belgium, the Netherlands, and Luxembourg. The US market’s fragmentation means that success in one region doesn’t automatically translate to another – the business environment in New York differs drastically from Texas, which, in turn, operates differently from California.

“The scale difference requires businesses from Belgium, the Netherlands, and Luxembourg to rethink their go-to-market approach completely,” notes Foothold America’s President and CEO Joanne Farquharson. “What works as a nationwide strategy in the Netherlands, Belgium, or Luxembourg often needs to be reimagined as a regional approach in the US, with specific adaptations for different market areas.”

Benelux & US Key Market Indicators (2025)

This stark contrast in scale and diversity requires a fundamentally different approach to market entry. While businesses in Belgium, the Netherlands, and Luxembourg can launch products nationwide in their respective home countries with strategies tailored to each nation, the US market often requires regional approaches, multiple distribution channels, and adaptation to various local preferences and regulations.

At Foothold America, we help businesses from Belgium, the Netherlands, and Luxembourg develop targeted entry strategies for the US market. We identify the most appropriate regions, channels, and approaches based on your industry, product, and business objectives. Our deep understanding of both market landscapes enables us to provide practical guidance that maximizes your chances of success while minimizing costly missteps.

Legal Structure and Compliance

When expanding from Belgium, the Netherlands, or Luxembourg to the US market, choosing the proper legal structure is one of your most crucial decisions. Most businesses from these countries opt for a C-Corporation, with registration in Delaware being particularly popular among companies of all sizes. Delaware’s popularity stems from its well-established business law framework, specialized business court system, and strong privacy protections. However, some companies choose to incorporate in states where they’ll have significant operations, such as California for tech companies or New York for financial services.

The complexity of US expansion can be overwhelming for businesses accustomed to their home country’s regulatory environment. Companies from Belgium, the Netherlands, and Luxembourg typically operate in markets with clear national regulations, though with significant differences between the three countries. The US system presents a stark contrast, with multiple layers of federal, state, and local laws that can vary dramatically by location and industry.

While Delaware incorporation offers many advantages, the best choice for your business will depend on various factors, including your industry, target market, and growth strategy. Foothold America’s US expansion experts can connect you with qualified legal and tax professionals with expertise in the US and your specific Benelux country.

Comparative Regulatory Structures: Benelux vs. US

Comparative Regulatory Structures: Benelux Countries vs. US

At Foothold America, we’ve helped numerous businesses from Belgium, the Netherlands, and Luxembourg successfully navigate these differences, establishing compliant and efficient legal structures that align with their specific needs and objectives. Our understanding of the individual Benelux countries’ regulatory environments and the US regulatory landscape positions us uniquely to guide you through this complex transition.

Immigration and Visa Requirements: Navigating Your Team’s Path to the US Market

An important consideration for businesses from Belgium, the Netherlands, and Luxembourg is understanding treaty relationships with the United States that enable key visa categories:

All three Benelux countries maintain treaties with the US that provide access to both E-1 Treaty Trader and E-2 Treaty Investor visa categories, offering significant advantages for business expansion.

Key Visa Options for Benelux Businesses

E-1 Treaty Trader Visa: The E-1 visa is available to nationals of countries that maintain a treaty of commerce and navigation with the US (including all Benelux countries). To qualify, your company must engage in substantial trade with the US, with over 50% of the trade volume between the US and your specific Benelux country. This visa allows executives, managers, and essential employees to work in the US for renewable two-year periods. Processing typically takes 3-5 months, with government fees ranging from $960-$2,100. When factoring in attorney fees ($3,500-$7,500), total costs typically range from $4,500-$9,500 per application. Premium processing is available for faster decisions.

E-2 Treaty Investor Visa: The E-2 visa is available to nationals from all three Benelux countries who are making substantial investments in US operations. While there’s no statutory minimum investment amount, it must be significant enough to ensure the successful operation of the enterprise. This visa offers renewable two-year periods and provides work authorization for spouses. Like the E-1, processing typically takes 3-5 months, with similar cost structures, including government fees and attorney costs ($4,500-$9,500 total). Premium processing is available.

L-1 Intracompany Transferee Visa: The L-1 visa category is particularly valuable for established companies from Belgium, the Netherlands, and Luxembourg, transferring executives, managers, or employees with specialized knowledge to a US affiliate, subsidiary, or parent company. This visa requires the employee to work with your company in your home country for at least one year within the previous three years. The visa is initially granted for 3 years and can be extended to 7 years for managers/executives or 5 years for specialized knowledge employees. Processing typically takes 4-9 months, though premium processing can expedite this to 15 calendar days for an additional fee. Total costs range from $6,000-$12,000, including attorney fees. The L-1 visa offers a potential pathway to permanent residence, making it attractive for key personnel in your long-term US expansion plans.

H-1B Specialty Occupation Visa: While more complex and subject to annual caps, the H-1B visa program can be valuable for accessing specialized talent, particularly in technical fields. This visa requires a bachelor’s degree or equivalent and participation in an annual lottery system with a limited filing window in March for October start dates. H-1B visas are granted for 3 years initially and can be extended for up to 6 years. Processing typically takes 6-10 months, and government fees range from $1,200-$8,200+, depending on company size. The program’s dual intent provision, allowing for permanent residence applications, makes it attractive for long-term talent acquisition strategies despite its complexities.

Key Visa Comparison Table

Fees may vary based on employer size and other factors.
*H-1B spouse work authorization depends on specific circumstances.

Foothold America works with a network of experienced immigration attorneys and visa specialists nationwide to ensure our clients from Belgium, the Netherlands, and Luxembourg receive expert guidance throughout the visa application process. Our partners provide specialized knowledge of various visa categories and stay current with the latest immigration policy changes, helping our clients navigate the complex US immigration system efficiently and successfully.

Cost Structures and Financial Planning

Employment Costs: Benelux vs. US Comparison

The US employment cost structure differs fundamentally from the systems in Belgium, the Netherlands, and Luxembourg and requires careful budgeting when planning your expansion. While both regions have significant employer contributions beyond base salary, the structure and nature of these costs vary dramatically.

In the Benelux countries, employers’ additional costs beyond base salary vary by country: Belgium typically sees the highest at 35-50%, the Netherlands ranges from 35-45%, and Luxembourg tends to be lower at 25-35%. These costs fund each country’s social welfare systems, including their respective approaches to healthcare, paid leave, and social security benefits. In contrast, US employers typically face additional fees of 25-40% above base salary but with a fundamentally different structure focused on private healthcare insurance, retirement programs, and limited statutory benefits.

“The largest surprise for our clients from Belgium, the Netherlands, and Luxembourg isn’t necessarily the total employment cost, but how differently it’s structured,” explains Joanne Farquharson, President and CEO of Foothold America. “Instead of standardized national social security contributions funding universal systems, US employment costs go toward private benefits packages that require significant design and administration. This shift from public to private systems represents one of the biggest operational adjustments for companies from the Benelux region.”

Comparative Employment Costs: Benelux vs US (2025)

*Percentages are approximate and vary based on salary levels, industry, and specific benefits offered.

Key Structural Differences

These structural differences create both challenges and opportunities for businesses from Belgium, the Netherlands, and Luxembourg expanding to the US:

1. Healthcare Approach: While Benelux countries include healthcare contributions as specific percentages within the social security framework, US employers must purchase private insurance plans with significant administrative overhead and annual premium increases.

2. Benefit Coordination: Benelux employers manage fewer, more integrated benefit programs through centralized government systems; US employers must coordinate multiple vendors across various benefit categories.

3. Regional Variation: US employment costs can vary dramatically by state and locality, while Benelux costs maintain relative consistency within each country.

4. Administrative Complexity: The US system requires more administrative resources to manage benefits that would be automatically provided through government systems in Benelux countries.

5. Benefit Design Flexibility: The US system provides greater flexibility in designing competitive benefits packages, allowing employers to differentiate themselves through benefits that align with company values.

Employment Law Framework: Navigating a Different Legal Landscape

Understanding US employment law represents one of the most significant adjustments for businesses expanding from Belgium, the Netherlands, and Luxembourg to America, as the frameworks differ fundamentally in both approach and specifics. While each Benelux country has its employment laws, all feature more extensive worker protections, statutory benefits, and regulatory requirements than the US system, offering more employer flexibility with fewer federal mandates.

The At-Will Employment Doctrine

Perhaps the most striking difference is the US concept of “at-will employment,” which means the employer or employee can terminate the employment relationship at any time, with or without cause or notice. This contrasts sharply with the employment models in Belgium, the Netherlands, and Luxembourg, which feature extensive protections against termination, lengthy notice periods (typically 2-6 months), and strict requirements for valid termination reasons.

While this gives US employers significant flexibility, the reality requires careful navigation. Employers must still comply with federal and state anti-discrimination laws, and many states have created exceptions to at-will employment through implied contracts or public policy considerations. Additionally, termination practices can significantly impact company culture and reputation in ways that may be particularly challenging for businesses accustomed to the employment norms of their respective Benelux country.

Comparative Employment Law Framework

Businesses from Belgium, the Netherlands, and Luxembourg must adapt to these fundamental differences while maintaining their corporate values and culture. This often involves creating policies that bridge the gap between their home country’s employment philosophy and US legal requirements.

At Foothold America, we help companies from these countries successfully navigate these differences, developing employment frameworks that maintain their core values while ensuring full compliance with US requirements. Our experience with numerous businesses entering the US market from Belgium, the Netherlands, and Luxembourg provides valuable insights into effectively balancing these competing considerations.

Understanding US Salary Practices: A New Compensation Landscape

Moving from Belgian, Dutch, or Luxembourgish compensation structures to US compensation requires more than simple currency conversion. Dramatic regional variations characterize the US salary landscape, and compensation structures differ fundamentally from those familiar in the Benelux countries.

Regional Compensation Variations

The US market presents regional salary variations that exceed what is typically encountered within Belgium, the Netherlands, or Luxembourg. While salary differences between capital cities and other regions in these countries usually range from 10-20%, US regional variations can reach 50-100% for identical roles. Cities like San Francisco, New York, and Seattle command significant premiums over mid-sized markets, while differences in state tax structures further impact take-home pay.

“The regional salary variations in the US often shock our clients from Belgium, the Netherlands, and Luxembourg,” notes Angelique Soulet-Bangurah, PHR, Head of EOR Services & Talent Acquisition Lead at Foothold America. “A software developer role might command $180,000 in San Francisco but only $90,000 in a smaller market like Nashville or Salt Lake City. This requires completely different compensation strategies depending on where you establish your operations.”

Major Market Tiers

Tier 1 Markets (40-75% above national average)

The highest-paying markets in the US demonstrate a clear connection to specific industry concentrations and venture capital presence. The San Francisco Bay Area leads with tech salaries soaring 70-75% above national medians, driven by a dense concentration of tech giants and startups. New York City follows with salaries 60-70% above national averages, powered by its unique combination of financial services, media, and growing tech presence. With its robust biotech and education ecosystem, Boston commands salaries 50-65% above national medians, particularly in life sciences roles. Seattle rounds out this tier with tech compensation 45-60% above national averages, supported by significant tech employers and the aerospace industry.

Tier 2 Markets (15-35% above national average)

Second-tier markets offer an attractive balance of substantial compensation and moderately high living costs. Washington DC anchors this group with government and defense sector salaries 25-30% above national medians. Despite its high-profile, Los Angeles fits this tier with entertainment and media technology salaries averaging 20-30% above national figures. Austin has emerged as a compelling tech hub, offering salaries 15-25% above national averages while benefiting from Texas’s lack of state income tax. Denver’s growing tech presence maintains similar premiums, while Chicago’s diverse economy spanning finance, consulting, and traditional industries keeps it firmly in this tier.

Tier 3 Markets (At or near the national average)

These markets often provide the best salary-to-cost-of-living ratio. Atlanta and Dallas have cultivated growing tech scenes while maintaining lower costs, resulting in strong purchasing power despite slightly lower nominal salaries. Minneapolis and Philadelphia, anchored by traditional industries, hover near national averages. Nashville stands out for its rapidly growing business hub status, and while wages run a bit below the national median, significantly lower living costs create compelling total compensation packages.

Salary Structure Differences

Compensation in Belgium, the Netherlands, and Luxembourg typically features higher base salaries with limited variable components, while US compensation often includes more significant variable elements such as bonuses, commission, and equity. This difference is particularly pronounced in sales, executive, and technical roles.

For example, a sales position in the Netherlands might offer 75-85% of total compensation in base salary with a 15-25% bonus opportunity, while a comparable US role might structure compensation as 50-70% base salary with 30-50% in commission or performance bonuses. Similarly, technical roles in the US frequently include equity compensation, especially in startup and growth-stage companies, creating additional compensation upside not typically available in Benelux markets.

Banking and Financial Operations: Adapting to American Financial Systems

Establishing US banking operations presents unique challenges for businesses from Belgium, the Netherlands, and Luxembourg, particularly given the stark contrast between the digital-first banking systems common in these countries and the more traditional, documentation-heavy US approach.

Key Differences in Banking Systems

Businesses from Belgium, the Netherlands, and Luxembourg must adapt to several specific challenges when establishing US banking operations.

Documentation Requirements: US banks require extensive documentation for business accounts, including entity formation documents, EIN verification, and physical identification verification for signatories.

Physical Presence: While many Benelux banks typically offer complete digital onboarding, many US banks require in-person meetings to establish business banking relationships.

Payment Systems: Businesses must adapt to US-specific payment systems such as ACH transfers (replacing the SEPA transfers used in Europe) and potential checks for certain business transactions.

International Transfers: Managing transfers between parent companies in Belgium, the Netherlands, or Luxembourg and US operations involves higher fees, longer processing times, and more complex compliance requirements than many companies expect.

Sales Tax vs. VAT: A Fundamental Shift

Another significant adjustment is the transition from the VAT systems used in Belgium (21%), the Netherlands (21%), and Luxembourg (17%) to the US sales tax framework. Unlike the relatively consistent VAT rates within each Benelux country (with reduced rates for certain categories), the US sales tax operates as a complex web of state, county, and city-level taxes, each with its own rates, rules, and filing requirements.

Key differences include:

Jurisdictional Complexity: While businesses in Belgium, the Netherlands, and Luxembourg deal with their respective national tax authorities for VAT, US sales tax may involve dozens of different tax jurisdictions depending on where you have economic nexus.

Point of Taxation: VAT in the Benelux countries is collected at multiple stages with input tax credits, while US sales tax is generally applied only at the final consumer purchase.

Rate Variations: US sales tax rates vary dramatically by location, from 0% in some states to nearly 10% in others, with additional local taxes potentially adding 1-5%.

Economic Nexus: Following the 2018 South Dakota v. Wayfair Supreme Court decision, companies may have sales tax obligations in states where they have economic activity even without physical presence.

Businesses from Belgium, the Netherlands, and Luxembourg must implement systems to track sales by jurisdiction, determine appropriate tax treatment for each transaction, and manage potentially dozens of different tax filings and payments. This complexity often requires specialized software and expert guidance. It’s important to note that not all tax firms have expertise in multi-state sales tax compliance, making specialized knowledge crucial when selecting advisors.

At Foothold America, we help businesses from the Benelux region navigate these financial complexities. We connect you with appropriate banking partners and tax specialists who understand the unique challenges of US expansion from your specific market.

Cultural Differences in Business Practices

The cultural differences between Belgian, Dutch, and Luxembourgish business practices and those in the US extend beyond surface impressions to fundamental approaches in communication, decision-making, and workplace dynamics. Understanding these nuances is crucial for building successful relationships in the American market.

Communication Styles and Business Language

Each Benelux country has its own distinct communication style, with notable differences that impact business interactions. The Dutch are widely recognized for their exceptional directness and efficiency in communication, while Belgians tend to employ a more diplomatic approach (with variations between the more direct Flemish and the more formal Walloon regions), and Luxembourgers often demonstrate a multilingual and internationally-oriented communication style reflecting their cross-border business environment.

American business communication differs significantly, particularly when compared to the Dutch style which represents the starkest contrast. While both American and Dutch business cultures value clarity, Americans typically embed direct messages within more positive framing and relationship-building language. This difference can lead to misunderstandings during initial business interactions.

Here’s a comparison of common business phrases showing the contrast between Dutch directness and American communication style:

Dutch businesspeople often find American communication more verbose and indirect than they’re accustomed to, sometimes interpreting American politeness as inefficient or lacking clarity. Meanwhile, Americans may initially perceive Dutch directness as blunt or even rude, despite it being valued in Dutch culture as respectful of others’ time and intelligence.

Belgian communication, particularly in the French-speaking regions, tends to be more formal and diplomatic than the Dutch style, potentially aligning more closely with American expectations for politeness, though with less enthusiasm and positive framing. Luxembourgish business communication often blends elements of various European approaches due to its position as an international financial center with multilingual workforce.

While Dutch communication values precision, efficiency, and transparency above all, American business communication typically emphasizes enthusiasm, relationship-building, and maintaining positive interactions alongside conveying information. Understanding these differences is crucial for successful cross-cultural business relationships.

Meeting Culture and Presentations

Business meeting practices differ significantly between the individual Benelux countries and the United States, with distinct approaches to scheduling, presentations, and discussion formats.

Understanding these distinct meeting cultures is essential for successful business interactions across borders. Dutch professionals may need to adapt their direct approach when facing the more relationship-oriented American style, while Belgian and Luxembourgish businesses should prepare for more dynamic and interactive American meetings. For all Benelux countries entering the US market, developing comfort with American-style small talk and creating more visionary, benefit-focused presentations will enhance business effectiveness.

Business Relationship Development

Building business relationships follows different patterns in Benelux countries versus the United States:

Understanding these cultural differences helps Benelux businesses navigate the US market more effectively, avoiding misunderstandings and building stronger relationships with American partners, customers, and employees. At Foothold America, we provide cultural integration support to help Benelux companies adapt successfully to US business norms while maintaining their distinctive Benelux values and strengths.

Conclusion: Crafting Your Benelux-American Success Story

Expanding from Belgium, the Netherlands, or Luxembourg to the US market presents significant opportunities and challenges. Success requires thorough planning and understanding of the fundamental differences in scale, structure, and business culture. Companies from the Benelux region bring valuable strengths to the US market – innovative approaches, design thinking, sustainability practices, and international perspectives – which can become competitive advantages when adapted adequately to American expectations.

The key to successful expansion lies in preparation and partnership with experienced professionals who understand both markets. At Foothold America, we’ve guided numerous businesses from Belgium, the Netherlands, and Luxembourg through their US expansion journey, helping them navigate everything from market entry to ongoing operations while maintaining their core values and distinctive approaches.

Ready to begin your US expansion? Contact our team at Foothold America today to build a sustainable foundation for your business’s success in America.