By the late fourteenth century the political situation in the Low Countries was fairly stable. Five lords controlled most of the region, paying only nominal homage to their French and German overlords. In 1419 Philip the Good of Burgundy succeeded to the countship of Flanders and soon managed to acquire Holland, Zeeland, Brabant and Limburg to the north and Antwerp, Namur and Luxembourg to the south as well. He consolidated his power by establishing a strong central administration in Bruges. During his reign the Low Countries consisted of independent territories known as States which would report to the central government in Bruges. It is from these States that the body for what later would form the Dutch parliament, the States General evolved. 

The Hanseatic League - a mainly German federation of towns that developed laws, regulations and other policies in order to promote trade - gained in influence during Philips rule. Several Dutch towns including Deventer and Zwolle joined the federation. Due to the Hanseatic trade, the Dutch's shipbuilding skills greatly improved and merchants grew wealthy selling their luxury products. The arts flourished as well around this time. This made the Low Countries a very desirable region to the rulers of the time. Stability and prosperity marked the northern territories through a succession of rulers. Philip was succeeded by his son, Charles the Bold, who was killed in battle ten years later. His daugher Mary of Burgundy married the Habsburg Maximilian. Maximilian continued to implement the centralizing policies of Philip the Good, but in 1494 when he became Holy Roman Emperor, he transferred control of the Low Countries to his son, Philip the Handsome. When he died in 1506 he bequethed the Low Countries to his son Charles V, who in turn became King of Spain and was crowned Holy Roman Emperor in 1530. Under Charles's rule the Low Countries prospered. Especially Anwerp grew in wealth and soon became the greatest port in the empire, at the expense of the cities to the north. 

When Charles V handed over the reign of Spain and the Low Countries to his son Philip II, things changed dramatically. Under Charles V rule there were stirrings of religious reform, the teachings of Protestantism were especially popular. In a time where the Church's power dominated all aspects of society. Martin Luther's and John Calvin's doctrines fell on fertile ground. Especially the merchants of the cities were susceptible to their teachings, as their wealth and independence was restricted by the rules and regulations imposed on their business by the church. They were joined in their opposition by the guildsmen and their apprentices. However Philip II who was a staunch Catholic decided that the Dutch should be taught a lesson and not only introduced anti-Protestant edicts but also the Inquisition.