Amsterdam: Capital of Netherlands — Complete City Guide
Source: Unsplash
Capital Cities

Amsterdam: Capital of Netherlands — Complete City Guide

Capital and largest city of the Netherlands. Amsterdam is the capital and largest city of the Netherlands. It has a population of 933,680 in June 2024 within the city proper, 1,457,018 in the urban area and 2,480,394 in the metropolitan area.

Geography Worlds
January 15, 2025
11 min read

Introduction

Amsterdam is the capital and largest city of the Netherlands. It has a population of 933,680 in June 2024 within the city proper, 1,457,018 in the urban area and 2,480,394 in the metropolitan area. Located in the Dutch province of North Holland, Amsterdam is colloquially referred to as the "Venice of the North", for its large number of canals, now a UNESCO World Heritage Site. Amsterdam was founded at the mouth of the Amstel River, which was dammed to control flooding. Originally a small fishing village in the 12th century, Amsterdam became a major world port during the Dutch Golden Age of the 17th century, when the Netherlands was an economic powerhouse. Amsterdam was the leading centre for finance and trade, as well as a hub of secular art production. In the 19th and 20th centuries, the city expanded and new neighborhoods and suburbs were built. The city has a long tradition of openness, liberalism, and tolerance. Cycling is key to the city's modern character, and there are numerous biking paths and lanes spread throughout. Amsterdam's main attractions include its historic canals; the Rijksmuseum, the state museum with Dutch Golden Age art; the Van Gogh Museum; the Dam Square, where the Royal Palace of Amsterdam and former city hall are located; the Amsterdam Museum; Stedelijk Museum, with modern art; the Concertgebouw concert hall; the Anne Frank House; the Scheepvaartmuseum, the Natura Artis Magistra; Hortus Botanicus, NEMO, the red-light district and cannabis coffee shops. The city is known for its nightlife and festival activity, with several nightclubs among the world's most famous. Its artistic heritage, canals, and narrow canal houses with gabled façades, well-preserved legacies of the city's 17th-century Golden Age, have attracted millions of visitors annually. The Amsterdam Stock Exchange, founded in 1602, is considered the oldest "modern" securities market stock exchange in the world. As the commercial capital of the Netherlands and one of the top financial centres in Europe, Amsterdam is considered an alpha-world city. The city is the cultural capital of the Netherlands. Many large Dutch institutions have their headquarters in the city. Many of the world's largest companies are based in Amsterdam or have established their European headquarters there, such as technology companies Uber, Netflix, and Tesla. Although Amsterdam is the official capital of the Netherlands, it is not the seat of government. The main governmental institutions, and foreign embassies, are located in The Hague. In 2022, Amsterdam was ranked the ninth-best city to live in by the Economist Intelligence Unit and 12th on quality of living for environment and infrastructure by Mercer. The city was ranked 4th place globally as a top tech hub in 2019. The Port of Amsterdam is the fifth largest in Europe. The KLM hub and Amsterdam's main airport, Schiphol, is the busiest airport in the Netherlands, third in Europe. The Dutch capital is one of the most multicultural cities in the world, with about 180 nationalities represented. Immigration and ethnic segregation in Amsterdam is a current issue. Amsterdam's notable residents throughout its history include painters Rembrandt and Vincent van Gogh, 17th-century philosophers Baruch Spinoza, John Locke, René Descartes, and Holocaust victim and diarist Anne Frank.

Amsterdam - Capital of Netherlands
Amsterdam, Netherlands | Source: Unsplash

History & Origins

Due to its geographical location in what used to be wet peatland, the founding of Amsterdam is later than other urban centres in the Low Countries. However, around the area of what later became Amsterdam, farmers settled as early as three millennia ago. They lived along the prehistoric IJ river and upstream of its tributary Amstel. The prehistoric IJ was a shallow and quiet stream in peatland behind beach ridges. This secluded area was able to grow into an important local settlement centre, especially in the late Bronze Age, the Iron Age and the Roman Age. Neolithic and Roman artefacts have also been found in the prehistoric Amstel bedding under Amsterdam's Damrak and Rokin, such as shards of Bell Beaker culture pottery (2200–2000 BC) and a granite grinding stone (2700–2750 BC), but the location of these artefacts around the river banks of the Amstel probably points to the presence of a modest semi-permanent or seasonal settlement. Until water issues were controlled, a permanent settlement would not have been possible, since the river mouth and the banks of the Amstel in this period in time were too wet for permanent habitation.

Geography & Climate

Amsterdam is located in the Western Netherlands, in the province of North Holland, the capital of which is not Amsterdam, but rather Haarlem. The river Amstel ends in the city centre and connects to a large number of canals that eventually terminate in the IJ. Amsterdam's elevation is about −2 m (−6.6 ft) below sea level. The surrounding land is flat as it is formed of large polders. An artificial forest, Amsterdamse Bos, is in the southwest. Amsterdam is connected to the North Sea through the long North Sea Canal. Amsterdam is intensely urbanised, as is the Metropolitan Region Amsterdam surrounding the city. Comprising 219.4 km2 (84.7 sq mi) of land, the city proper has 4,457 inhabitants per km2 and 2,275 houses per km2. Parks and nature reserves make up 12% of Amsterdam's land area.

Amsterdam has an oceanic climate (Köppen: Cfb) strongly influenced by its proximity to the North Sea to the west, with prevailing westerly winds. Amsterdam, as well as most of the North Holland province, lies in USDA Hardiness zone 8b. Frosts mainly occur during spells of easterly or northeasterly winds from the inner European continent. Even then, because Amsterdam is surrounded on three sides by large bodies of water, as well as having a significant heat-island effect, nights rarely fall below −5 °C (23 °F), while it could easily be −12 °C (10 °F) in Hilversum, 25 km (16 mi) southeast. Summers are moderately warm with several hot and humid days with occasional rain every month. The average daily high in August is 22.1 °C (72 °F), and 30 °C (86 °F) or higher is only measured on average on 2.5 days, placing Amsterdam in AHS Heat Zone 2. The record extremes range from −19.7 °C (−3.5 °F) to 36.3 °C (97.3 °F). Days with more than 1 mm (0.04 in) of precipitation are common, on average 133 days per year. Amsterdam's average annual precipitation is 838 mm (33 in). A large part of this precipitation falls as light rain or brief showers. Cloudy and damp days are common during the cooler months of October through March.

Demographics & Culture

In 1300, Amsterdam's population was around 1,000 people. While many towns in Holland experienced population decline during the 15th and 16th centuries, Amsterdam's population grew, mainly due to the rise of the profitable Baltic maritime trade especially in grain after the Burgundian victory in the Dutch–Hanseatic War in 1441. The population of Amsterdam was only modest compared to the towns and cities of Flanders and Brabant, which comprised the most urbanized area of the Low Countries. This changed when, during the Dutch Revolt, many people from the Southern Netherlands fled to the North, especially after Antwerp fell to Spanish forces in 1585. Jews from Spain, Portugal, and Eastern Europe similarly settled in Amsterdam, as did Germans and Scandinavians. In thirty years, Amsterdam's population more than doubled between 1585 and 1610. By 1600, its population was around 50,000. During the 1660s, Amsterdam's population reached 200,000. The city's growth levelled off and the population stabilized around 240,000 for most of the 18th century. In 1750, Amsterdam was the fourth largest city in Western Europe, behind London (676,000), Paris (560,000) and Naples (324,000). This was all the more remarkable as Amsterdam was neither the capital city nor the seat of government of the Dutch Republic, which itself was a much smaller state than Great Britain, France or the Ottoman Empire. In contrast to those other metropolises, Amsterdam was also surrounded by large towns such as Leiden (about 67,000), Rotterdam (45,000), Haarlem (38,000), and Utrecht (30,000). The city's population declined in the early 19th century, dipping under 200,000 in 1820. By the second half of the 19th century, industrialization spurred renewed growth. Amsterdam's population hit an all-time high of 872,000 in 1959, before declining in the following decades due to government-sponsored suburbanisation to so-called groeikernen (growth centres) such as Purmerend and Almere. Between 1970 and 1980, Amsterdam experienced a sharp population decline, peaking at a net loss of 25,000 people in 1973. By 1985 the city had only 675,570 residents. This was soon followed by reurbanization and gentrification, leading to renewed population growth in the 2010s. Also in the 2010s, much of Amsterdam's population growth was due to immigration to the city.

During the later part of the 16th century, Amsterdam's Rederijkerskamer (Chamber of rhetoric) organised contests between different Chambers in the reading of poetry and drama. In 1637, Schouwburg, the first theatre in Amsterdam was built, opening on 3 January 1638. The first ballet performances in the Netherlands were given in Schouwburg in 1642 with the Ballet of the Five Senses. In the 18th century, French theatre became popular. While Amsterdam was under the influence of German music in the 19th century there were few national opera productions; the Hollandse Opera of Amsterdam was built in 1888 for the specific purpose of promoting Dutch opera. In the 19th century, popular culture was centred on the Nes area in Amsterdam (mainly vaudeville and music-hall). An improved metronome was invented in 1812 by Dietrich Nikolaus Winkel. The Rijksmuseum (1885) and Stedelijk Museum (1895) were built and opened. In 1888, the Concertgebouworkest orchestra was established. With the 20th century came cinema, radio and television. Though most studios are located in Hilversum and Aalsmeer, Amsterdam's influence on programming is very strong. Many people who work in the television industry live in Amsterdam. Also, the headquarters of the Dutch SBS Broadcasting Group is located in Amsterdam. There are also a number of cultural centers based in the city that produce public programs about the arts, sciences, politics and history, including de Balie and the John Adams Institute.

Economy & Government

Amsterdam is the financial and business capital of the Netherlands. According to the 2007 European Cities Monitor – an annual location survey of Europe's leading companies carried out by global real estate consultant Cushman & Wakefield – Amsterdam is one of the top European cities in which to locate an international business, ranking fifth in the survey. with the survey determining London, Paris, Frankfurt and Barcelona as the four European cities surpassing Amsterdam in this regard. A substantial number of large corporations and banks' headquarters are located in the Amsterdam area, including: AkzoNobel, Heineken International, ING Group, ABN AMRO, TomTom, Delta Lloyd Group, Booking.com and Philips. Although many small offices remain along the historic canals, centrally based companies have increasingly relocated outside Amsterdam's city centre. Consequently, the Zuidas (English: South Axis) has become the new financial and legal hub of Amsterdam, with the country's five largest law firms and several subsidiaries of large consulting firms, such as Boston Consulting Group and Accenture, as well as the World Trade Centre (Amsterdam) located in the Zuidas district. In addition to the Zuidas, there are three smaller financial districts in Amsterdam: around Amsterdam Sloterdijk railway station. Where one can find the offices of several newspapers, such as De Telegraaf. as well as those of Deloitte, the Gemeentelijk Vervoerbedrijf (municipal public transport company), and the Dutch tax offices (Belastingdienst); around the Johan Cruyff Arena in Amsterdam Zuidoost, with the headquarters of ING Group; around the Amstel railway station in the Amsterdam-Oost district to the east of the historical city. Amsterdam's tallest building, the Rembrandt Tower, is located here. As are the headquarters of Philips, the Dutch multinational conglomerate. Amsterdam has been a leading city to reduce the use of raw materials and has created a plan to become a circular city by 2050. The adjoining municipality of Amstelveen is the location of KPMG International's global headquarters. Other non-Dutch companies have chosen to settle in communities surrounding Amsterdam since they allow freehold property ownership, whereas Amsterdam retains ground rent. The Amsterdam Stock Exchange, now part of Euronext, is the world's oldest stock exchange and, due to Brexit, has overtaken LSE as the largest bourse in Europe. It is near Dam Square in the city centre.

Landmarks & Attractions

Amsterdam is one of the most popular tourist destinations in Europe, receiving more than 5.34 million international visitors annually; this is excluding the 16 million day-trippers visiting the city every year. The number of visitors has been growing steadily over the past decade. This can be attributed to an increasing number of European visitors. Two-thirds of the hotels are located in the city's centre. Hotels with four or five stars contribute 42% of the total beds available and 41% of the overnight stays in Amsterdam. The room occupation rate was 85% in 2017, up from 78% in 2006. The majority of tourists (74%) originate from Europe. The largest group of non-European visitors come from the United States, accounting for 14% of the total. Certain years have a theme in Amsterdam to attract extra tourists. For example, the year 2006 was designated "Rembrandt 400", to celebrate the 400th birthday of Rembrandt van Rijn. Some hotels offer special arrangements or activities during these years. The average number of guests per year staying at the four campsites around the city ranges from 12,000 to 65,000. In 2023, the city began running a campaign to dissuade British men between the ages of 18 and 35 from coming to the city as tourists. The ad shows young men being handcuffed by police and is part of a new campaign to clean up the city's reputation. On 25 May 2023, in a bid to crackdown on wild tourist behaviour, the city banned weed smoking in public areas in and around the red light district.

Key Facts

  • Amsterdam is the capital of Netherlands
  • Population: approximately 921,000+
  • Elevation: -2 meters (-7 feet) above sea level
  • Area: 219 km²
  • Founded: 1300 AD
  • Located in the Western Europe region
  • Capital and largest city of the Netherlands

Fun Facts

  • Amsterdam is nicknamed "Venice of the North"
  • Amsterdam is 2 meters below sea level, one of the lowest capitals on Earth
  • Located in the Dutch province of North Holland, Amsterdam is colloquially referred to as the "Venice of the North", for its large number of canals, now a UNESCO World Heritage Site.
  • The city is known for its nightlife and festival activity, with several nightclubs among the world's most famous.
  • The Amsterdam Stock Exchange, founded in 1602, is considered the oldest "modern" securities market stock exchange in the world.

Quick Facts About Amsterdam

  • Country: Netherlands
  • Continent: Europe (Western Europe)
  • Country population: approximately 18.4 million
  • Capital city status: Amsterdam is the capital of Netherlands, the seat of national government, and the location of foreign embassies, parliament, and the head of state's official residence.

Frequently Asked Questions

What is the capital of Netherlands?

The capital of Netherlands is Amsterdam. Amsterdam is the seat of national government, hosts most foreign embassies and consulates, and is typically where the head of state and parliament are located.

What continent is Amsterdam in?

Amsterdam, the capital of Netherlands, is located in Europe, in the Western Europe region. As Netherlands's capital, Amsterdam serves as the country's primary connection to the broader Europen political, economic, and cultural sphere.

Why is Amsterdam the capital of Netherlands?

Amsterdam was chosen as the capital of Netherlands for reasons that typically combine geography, history, and politics. Capital city selections often reflect a desire for centrality (being accessible from across the country), historical importance (being a longstanding seat of government or culture), or neutrality (being acceptable to multiple regions or ethnic groups within the country). The specific reasons for Amsterdam's designation are detailed in the city's history above.

What is Amsterdam known for?

As the capital of Netherlands, Amsterdam is best known for housing the country's central government institutions — parliament, presidential or royal residences, supreme court, and key ministries. It is also typically a major cultural and economic center within Netherlands, hosting national museums, embassies, and signature monuments. The introduction and history sections above provide detailed coverage of the city's specific notable institutions and landmarks.

Related Pages

Geography Worlds is listed on LaunchPact