The Hague has launched a new tax initiative to boost start-ups in the region. They will no longer have to pay property tax, in a move which is expected to benefit up to 1.500 entrepreneurs.

Deputy Mayor Sander Dekker (Finance) argued that the move will support business and jobs in The Hague: "Someone starting up a company in these tough economic times is taking a risk. We want to support these people, not make it harder for them."

The initiative is the first such tax break in the Netherlands, and is part of a broader strategy to lower the cost of living in The Hague. The plan has worked; property taxes for individuals have been lowered by 10 percent, and the cost of living in The Hague is one of the lowest in the Netherlands.

The municipality has committed itself to find the extra finance to pay for the initiative, despite the economic recession that has hit the Netherlands. The city authorities believe that small businesses could lead the way in an economic recovery.

Entrepreneurs who set up their business no longer than five years ago, and who pay rent on commercial space, are eligible for the funding regardless of their business type. They can apply for compensation at the Municipal Tax Department using a reimbursement form.

Source: Municipality of The Hague