Belgium: Investing

FDI in Figures

Belgium figures among the countries most attractive to foreign direct investment (FDI). In its annual World Investment Report, the UNCTAD (United Nations Conference on Trade and Development) puts Belgium ahead of emerging economies such China, India and Russia, as well as established powers such as Canada and Hong Kong. Nevertheless, the recession has had a strong impact on the Belgian economy, which depends heavily on the countries of the European Union. FDI flows have dried up in 2009-2010 and are unlikely to recover their pre-crisis level soon.

Among the attractions of Belgian economy are: its strategic geographical position, at the crossroads of the main European markets; its high-quality transport, logistics and telecommunications infrastructure; its businesses specialized in the supply of intermediate and semi-finished goods; its multilingual and qualified workforce and a strong purchasing power.

Why You Should Choose to Invest in Belgium

Strong Points

Belgium's strong points are:
- A highly educated, productive, multilingual and flexible workforce;
- Quality business infrastructures;
- The country's strategic location at the center of Europe;
- A tradition openness to international trade; and
- Good quality of life.

Weak Points

Belgium's weak points are:
- High cost of salaries;
- A damaged financial system.

Government Measures to Motivate or Restrict FDI

The Belgian government recently introduced the notional interest. This is a new and innovative measure in the field of international tax law, by which all companies subject to Belgian corporate tax will be able to deduct from their taxable income an amount equal to the interest they would have paid on their capital in the case of long-term debt financing. In addition, the 0.5% registration fee on capital contributions has been abolished. For more information on the notional interest and investing in Belgium, please go to Invest in Belgium.

With regard to the financial crisis, the outcome from the authorities was quick, with the hardening of lending conditions on the inter-banking market.  Nevertheless, the Belgian government will develop and implement withdrawal strategies later, aimed at avoiding having the state hold a long-term stake in the creation.

Procedures Relative to Foreign Investment

Freedom of Establishment

Belgium has in place policies to facilitate the free flow of financial resources. Credit is allocated at market rates and is available sufficiently to foreign and domestic investors without discrimination. Belgium is fully served by the international banking community and is implementing all relevant EU financial directives.

More than 100 different banks are represented in Belgium; 54 Belgian or foreign-owned institutions are incorporated under Belgian law, and 50 institutions are incorporated under foreign law.

Acquisition of Holdings

Legal.

Obligation to Declare

Direct foreign investments are not submitted to a preliminary authorization, but in some activity sectors, the investor has to ask for an authorization from the government: banks, insurances, food products production or sale, retail trade.

Investment Opportunities

Investment Aid Agency

Invest in Belgium.

Tenders, Projects and Public Procurement

Ministry of finances, Public Procurements (in French)
EBP, Tenders and Projects in Belgium
Globaltenders, Tenders & Projects in Belgium
Tenders Info, Tenders in Belgium
Ted - Tenders Electronic daily, Business opportunities in EU 27

Other Useful Resources

OECD

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