Amsterdam is located in the western Netherlands, in the province of North Holland. The river Amstel terminates in the city centre and connects to a large number of canals that eventually terminate in the IJ.Amsterdam is situated 2 metres below sea level.s the commercial capital of the Netherlands and one of the top financial centres in Europe, Amsterdam is considered an alpha world city by the Globalization and World Cities (GaWC) study group. The city is also the cultural capital of the Netherlands.