The Netherlands (literally the '
Low Countries', or 'Pays Bas' in French) used to be the lower part of the duchy of
Burgundy, and after the abdication (
1555) of its duke,
Charles V (who died in 1558), were assigned to the Spanish lands inherited by his son
Philip II. (The higher parts were obtained by
France.)
The new king settled in Spain and really showed no interest in the Netherlands except for purposes of taxation.
The reformation had spread and as so often happens, religious differences split the Low Countries in two (the present-day Netherlands and Belgium), and led to war (1588-1648). Holland, in the most remote, northwestern part of the Low Countries, was at the heart of the rebellion, and became a safe haven to refugees of all kinds: merchants in need to evade taxes or religious prosecution, political activists, pirates (including some of our national heroes).
Our country was founded by a bunch of outlaws, which explains its traditional tolerance in religious and political matters, now quickly evaporating. The only reason it could remain independent was its awkward location,
far away from Spain, protected from France by Belgium, from Britain by the North Sea, and from Germany by that country's internal lack of political unity.