Het metrostation ligt links van het museumplein.

Because both metrostation and museumplein are singular het-words in Dutch.

• het metrostation = the metro station
• het museumplein = the museum square

In Dutch, singular nouns take either de or het as their definite article. English just uses the for everything, so this often stands out to learners.

Dutch often uses liggen for the location of places, buildings, and objects.

So:

• Het metrostation is links van het museumplein is not the normal way to say it.
• Het metrostation ligt links van het museumplein is the natural Dutch phrasing.

This is different from English, where is is usually enough. Dutch makes a distinction:

• staan = stand
• liggen = lie
• zitten = sit
• sometimes these are used in ways that English would just translate as be

For locations like a station, park, town, or building, liggen is very common.

Links van is the standard expression for to the left of.

• links = left / on the left
• van = of / from

Together, links van means to the left of.

Similar expressions:

• rechts van = to the right of
• naast = next to
• voor = in front of
• achter = behind

So links van het museumplein is the normal Dutch way to express that position.

Here, links is being used as an adverb of place, not as an adjective before a noun.

Compare:

• Het metrostation ligt links van het museumplein.
  Here links describes location.

But:

• de linkerkant = the left side
• de linker deur = the left door

So:

• links = leftward / on the left
• linker = left-hand, used before certain nouns
• linkse usually means left-wing in a political sense, so it would not fit here

It is a compound noun, which is very common in Dutch.

• metro = metro / subway
• station = station

Together:

• metrostation = metro station

Dutch usually writes compound nouns as one word, whereas English often uses two words.

Other examples:

• treinstation = train station
• busstation = bus station
• fietspad = bike path

For the same reason: Dutch strongly prefers compound nouns written as a single word.

• museum
  • plein = museumplein

Literally, that is something like museum square.

If it is a specific place name, it may be capitalized as Museumplein. If it is being used more generally, lowercase museumplein is possible. In your sentence, it is written in lowercase, so it looks like a common noun rather than a formal proper name.

Because Dutch main clauses normally follow the verb-second rule.

The sentence structure is:

• Het metrostation = subject
• ligt = verb
• links van het museumplein = location phrase

So the finite verb ligt must come early in the sentence, usually in second position.

This is standard Dutch word order for a simple statement.

Ligt is the third person singular present tense of liggen.

The infinitive is:

• liggen = to lie / to be situated

Present tense:

• ik lig
• jij ligt
• hij/zij/het ligt

Since het metrostation is singular, Dutch uses ligt.

Yes. That would also be correct:

• Het metrostation ligt aan de linkerkant van het museumplein.

This means the same thing, but it is a bit longer and more explicit.

In many everyday situations, links van is the more direct and natural option.

Yes, plein is normally a neuter noun, so it takes het in the singular:

• het plein = the square

That is why the compound museumplein also takes het:

• het museumplein

This is common in Dutch compounds: the compound usually keeps the gender/article of the final main noun.

It would sound very normal and idiomatic.

A native speaker would understand it immediately as a simple location sentence. The most important things that make it sound natural are:

• using ligt for location
• using links van for to the left of
• writing the compounds as metrostation and museumplein

So even though the English translation may use is, Dutch naturally prefers ligt here.