Some 44% of Dutch company bosses don’t think the Netherlands is an attractive place to do business and one in five are thinking of leaving, the country’s biggest employers’ organisations said on Thursday.

The findings come from an annual research project carried out by the VNO-NCW and small firms association MKB-Nederland. The figures indicate a sharp rise in the number of firms who consider the climate for doing business in the Netherlands has worsened over the past year.

In the previous survey, just 28% thought the Netherlands was not a good place to do business, and 13% said they were considering leaving.

Some three quarters of the 1,600 people polled said they felt the complete business climate in the Netherlands had worsened over the past five years, compared with 62% a year ago.

Company bosses are most worried about the lack of stability in government – 82% said this was a problem, compared with 66% a year ago. And 60% said they do not think the November elections will lead to a stable cabinet either.

CEOs are also concerned about increasing red tape, the shortage of staff and taxes. Around one in four said they would not make any investments in the coming year.

“The Netherlands is no longer a tax haven,” said VNO-NCW director Ingrid Thijssen in the Telegraaf. “The burden of taxes and premiums on companies is among the highest in Europe. And that is driving companies away.”

Around 70% of those polled also said they felt the increased polarization in Dutch society is a threat for the business climate, a slight rise on 2023.