Reshoring is the relocation of production or services back to the home country — for the Netherlands: from Asia to the NL/EU. At Musch Legal, we have seen growing reshoring since COVID, supply chain shocks, and geopolitical uncertainty. Legal implications: establishment in the Netherlands, employment law, tax optimization, EU subsidies under the Net Zero Industry Act 2024/1735, IP recovery from overseas factories. Good preparation makes reshoring cost-competitive with Asian production.
What is the legal issue? (Which themes are involved in reshoring?)
Reshoring requires decisions regarding: establishment structure (which corporate level), location selection (regions with subsidies), supplementation of employment law (talent attraction, training), IP recovery from overseas factories, supply chain restructuring (local suppliers), exit of overseas entities (closure procedures), environmental permits, subsidies (EU, national, regional). For strategic sectors (cleantech, chips, batteries, biotech): substantial EU and Dutch subsidies are available.
What does the law say? (Which frameworks apply?)
EU Net Zero Industry Act (Regulation 2024/1735) since 29 June 2024 for cleantech production (solar panels, batteries, heat pumps, electrolysers, wind turbines): permitting procedures accelerated (<12 months for strategic projects), 40% domestic capacity target. EU Chips Act (Regulation 2023/1781) since 21 September 2023 for semiconductor production: 43 billion euros in public and private investment until 2030. EU Critical Raw Materials Act (Regulation 2024/1252) for strategic raw materials. Dutch subsidies via RVO and Nationaal Groeifonds. Innovation Box: 9% effective rate for IP profit.
For State aid: General Block Exemption Regulation (Regulation 651/2014) simplified EU procedure.
Sector
EU subsidy
Application
Cleantech
Net Zero Industry Act 2024/1735
Accelerated licensing, financing
Semiconductors
Chips Act 2023/1781
Chips for Europe Initiative
Raw materials
Critical Raw Materials Act 2024/1252
Strategic projects status
Innovation
Horizon Europe
R&D grants
Investment
Innovation Box NL
9% effective on IP profit
Sector
EU subsidy
Application
Cleantech
Net Zero Industry Act 2024/1735
Accelerated licensing, financing
Semiconductors
Chips Act 2023/1781
Chips for Europe Initiative
Raw materials
Critical Raw Materials Act 2024/1252
Strategic projects status
Innovation
Horizon Europe
R&D grants
Investment
Innovation Box NL
9% effective on IP profit
What risks do companies face? (What threatens in the absence of preparation?)
Higher production costs without subsidies can make reshoring unprofitable. Lengthy permitting procedures (formerly 3-7 years in the Netherlands, now accelerated for cleantech). Talent shortage in technical sectors. Energy costs in the Netherlands higher than in many countries. For the exit of overseas factories: redundancy procedures, liquidation, tax exit charges. For the transfer of IP to the Netherlands: careful legal structuring to prevent double taxation. Unauthorized subsidy application: recovery plus fines.
Practical example from our practice (How Musch Legal guided battery reshoring)
Musch Legal advised a Dutch cleantech company on reshoring battery production from China to the Netherlands (North Brabant). We coordinated: incorporation structure (BV building up 350 employees), Net Zero Industry Act 2024/1735 strategic project status (accelerated permitting <12 months), EU Innovation Fund grant (45 million euros), Dutch regional subsidies, Innovation Box application for IP profit (9% effective rate), and scaling up under employment law with a collective labor agreement. For Chinese exit: phased transition of 18 months with IP recovery. Production operational 24 months after decision; subsidies covered 35% capex. Project economically competitive with China within 4 years.
What can you do? (Which reshoring strategy are you building?)
Conduct scenario analysis: total cost of ownership including subsidies, capital subsidies, and operational costs. Identify subsidy instruments (EU Net Zero Industry Act, Chips Act, national schemes). Plan permitting processes — accelerated for cleantech under the Net Zero Industry Act. Negotiate with local authorities regarding investment incentives. Plan IP transfer carefully. Plan scaling up under labor law. For Asian exit: structural phase-out with IP recovery. Engage Musch Legal for reshoring strategy.
Nearshoring: legal considerations