INVEST IN BELGIUM

Invest in Belgium

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INVEST IN BELGIUM

Belgium At the border of 3 main European cultures

• 11 million inhabitants

• Official languages: French, Dutch, German

• Independent since 1830

• Federal state since 1981

• Head of state: King Philippe

• Capital: Brussels

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INVEST IN BELGIUM

7 main advantages Springboard for a pan-European development

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Global gateway to key markets/Ideal test market

Accessibility from all Europe & Worldwide

International decision centre

International talent pool and innovation centre

Competitive real estate

Advantageous business environment

High quality of life

INVEST IN BELGIUM

Belgium is the 3rd most globalised country in the world

KOF Index 2015 measures 25 variables indicating degree of integration into world economy KOF stands for Konjunkturforschung (Business cycle research)

4

91,3 91,24 91

82,96 82,76 82,65

74,81

65,87

0

10

20

30

40

50

60

70

80

90

100

Ireland Netherlands Belgium UK France Germany USA Japan

KOF Index of Globalization 2015

INVEST IN BELGIUM

A perfect assessment market

• Gateway to European market

• Multi-cultural population

• European diversity challenge on a small scale

Importation 81,7% GDP

Exportation 83,6% GDP

Source : The World Bank 2014

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INVEST IN BELGIUM

Successful test in Belgium = successful test in Europe

H&M maintains a pilot store in Belgium in order to market-test all its newest clothing collections.

The Coca-Cola company has tested over 1,000 products in Belgium, including the well-received Coca-Cola Light Sango cola and Fanta World Mango product in 2006.

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INVEST IN BELGIUM

Belgium connected to Europe

75 % of the EU

market (GDP)

40 % of the

consumers

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INVEST IN BELGIUM

Belgium connected to Europe

• Paris – 1 hour 25 23 connections / day

• London – 2 hours 01

11 connections / day

• Amsterdam – 1 hour 50 12 connections / day

• Cologne – 1 hour 47 4 connections / day

• Frankfurt – 2 hours 59 4 connections / day

European High Speed Trains

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INVEST IN BELGIUM

Belgium connected to Europe

• Located at 12 km from the Brussels city centre

• More than 190 passengers connections

• 41 « cargo only » destinations worldwide

• Brussels Airport: overall winner World Routes Award 2014

Air connections

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INVEST IN BELGIUM

Developed road and railway networks Belgium has the densest road network in the world

Source: IMD World Competitiveness Yearbook 2015

Roads Density of network, km per square km

Railroads Density of network, km per square km

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1,73

1,73

1,87

1,92

2,1

3,3

4

4,82

5

5,08

Switzerland

Denmark

France

Slovenia

Hungary

Japan

Hong Kong

Singapore

Netherlands

Belgium

0,023

0,053

0,055

0,067

0,073

0,094

0,117

USA

Japan

France

UK

Netherlands

Germany

Belgium

INVEST IN BELGIUM

Belgian airports Europe and the world in a flap of wings

Brussels Airport

• International crossroads connecting the capital of Europe with the world

• Located at about 12 km (8 miles) north east of Brussels. Direct connection by train (up to 4/hour) to the city centre (20’), busses links to NATO, the European Commission and the city centre

• Landing of most long-haul international flights with connections to major hubs such as

London, Amsterdam and Frankfurt , 2 daily flights to New-York and daily services to Toronto, Mumbai and Delhi

• Awarded “ World Routes Award” in the category 4m – 20 m passengers (2014)

• Awarded the “Airport of the year Award” at the Shanghai World Air Cargo Awards (2015)

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INVEST IN BELGIUM

Belgian airports Europe and the world in a flap of wings

Cargo Hub in the heart of Europe

• Top 5 European cargo airports (ACI statistics) • Ideal air-road transition • Worldwide cargo flights network

Offering

• More than 160 000 m² dedicated freight terminals • 120 000 m² more to come • 3 800 m² perishable centre • Selected and authorised handling agents • Excellent turnaround times • Electronic community system • Competitive fuel pricing

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INVEST IN BELGIUM

Belgian airports Europe and the world in a flap of wings

Brussels South Charleroi Airport (Cargo airport)

• 200 ha Business park : “Aeropole” • Focussing on regular charter flights • Low cost flights & operations, high efficiency • Neighbouring Aero-Industries test base

Liege Airport (Cargo airport)

• Centre of Amsterdam – Paris – Frankfurt triangle • 1st European Airport focussing on cargo • Operating 24/7 • European hub of TNT-Express Worldwide • Low cost, extra fast & efficient operations

International Airport Ostend-Bruges

• Cargohub for Africa and Middle-East • Top facilities for perishables, outsourced cargo and livestock • EU veterinary inspection post • Charter flights on selected destinations • Flexible 24/7 airport operations • Fast turnarounds • Runway 3200 m/10500 ft

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8

327 407 482 561 591

0

500

1000

1996 2002 2006 2009 2013 2014

Cargo volumes evolution (thousands) Liege Airport

2,96 3,94 5,2 5,9 6,5 6,79 6,44

0

5

10

2008 2009 2010 2011 2012 2013 2014

Number of passengers (millions) Brussels South Charleroi Airport

INVEST IN BELGIUM

Belgian Seaports Port of Antwerp

• 2nd largest port in Europe • N°1 chemical port (BASF, Dow, Bayer, …)

Port of Zeebruge

• High end deep sea port in Flanders • European hub port for automative industry (new cars)

Port of Ostend

• Fast growing ro-ro port • Important role in the realisation of a European

short sea container network

Port of Ghent

• Versatile port for distribution to Belgium and Northern half of France

• Largest recycling paper plant in the world

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INVEST IN BELGIUM

Belgian Inland Ports Port of Brussels

• 6th largest inland port of Europe • 2nd inland port of Belgium

Port of Liège

• 3rd largest in Europe • Close to seaports of Antwerpen en Rotterdam

Port of Charleroi

• Direct canals connections to Brussels and Antwerp

Port of Namur

• Junction between East & West Inland Ports

Port of Meerhout

• Container Terminal nearby Antwerp

Port of Genk

• TriModal Platform Water-Rail-Road

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INVEST IN BELGIUM

Brussels, International government capital European Institutions

• European Commission • European Council • European Parliament • Committee of the Regions • European Economic and Social Committee

Highest Concentration of Diplomatic Missions • NATO headquarters

• 1 500 International Professional Federations

• Representation of most European Political Parties and Regions

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INVEST IN BELGIUM

Belgium, International business hub

Major multinationals have their decision centre in Belgium:

• Approximately 2 300 foreign companies have set-up European HQ or sales subsidiaries in Belgium

• Brussels is the best conference city in Europe and the second best conference city worldwide (Source : UIA Conference Cities Ranking 2014)

• 5 000 diplomats, 15 000 lobbyists and 1 500 international press members

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INVEST IN BELGIUM

Education & skills Higher education and training

For information :

Russia 38 China 68 India 90 Brazil 93

Sources : World Economic Forum Global Competitiveness Report 2015 – 2016

Language Skills

For information :

India 6,57 China 5,43 Russia 4,32 Brazil 2,48

IMD World Competitiveness Yearbook 2015

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2,86

3,67

4,25

4,79

7,05

8,26

8,68

Japan

France

UK

USA

Germany

Belgium

NetherlandsCountry Rank

Netherlands 3

Belgium 5

USA 6

Germany 17

UK 18

Japan 21

France 25

INVEST IN BELGIUM

Best quality for education and schooling

Sources : The Global Competitiveness Report World Economic Forum 2015 – 2016

Ranking (out of 140 countries surveyed)

Primary Education

Educational System

Math and Sciences

Management Schools

Belgium 2 5 3 2

Netherlands 6 8 7 8

Germany 19 10 16 25

France 28 30 19 11

UK 27 21 46 3

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INVEST IN BELGIUM

An unique hotspot for lifelong learning “Best country in the world for academic research” The Scientist, November 2007

16 Outstanding Universities • Universities meet the needs of a competitive economy : Belgium ranked 6th out of 61

(IMD World Competitiveness Yearbook 2015)

• Strong interaction between teaching and research • Management schools ranked 2nd out of 140

(Global Competitiveness Report World Economic Forum 2015 – 2016)

• 7 universities are classified in the Academic Ranking of the World Universities 2015 by Shanghai Jiao Tong University.

Worldwide renowned Research Centres • IMEC: nano-electronics • SCK-CEN: peaceful applications of nuclear science • ITM: Institute of Tropical Medicine • VIB: life sciences • Welbio: fundamental life sciences • VITO: sustainable technologies • Cenaero: high-tech industry, mainly in aeronautics • iMinds : Interdisciplinary Institute for Broadband Technology • … and many others

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INVEST IN BELGIUM

Labor market Global Productivity Index

Sources : Conference Board 2014

Salary Cost (US $- for a Director)

Countries with high productivity GDP/worked hour

Total base salary plus bonuses and long-term incentives, US $

Sources : IMD World Competitiveness Yearbook 2015

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486926

515214

577715

602354

641784

757439

Netherlands

Belgium

France

Germany

UK

USA

42,06

49,66

63,44

64

64,6

66,47

66,92

Japan

UK

Germany

France

Netherlands

USA

Belgium

INVEST IN BELGIUM

EU innovation performance

Source: Innovation Union Scoreboard 2015 – European Commission, DG Enterprise and Industry

EU member states’ innovation performance

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0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

INVEST IN BELGIUM

Research & Development

Ranking (out of 140 countries surveyed)

Availability of latest technology

Capacity for innovation Quality of scientific research institutions

Belgium 15 13 5

Netherlands 10 16 6

Germany 12 5 9

France 21 20 13

UK 5 10 2

Source: Global Competitiveness Report World Economic Forum, 2015 - 2016

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INVEST IN BELGIUM

Research & Development 2014 EU Industrial R&D Scoreboard (European

Commission)

• 0,4% of the R&D investments by the top 2 500 companies

mentioned in the study come from Belgium

• 2 out of the 37 companies in the top EU potential leading

companies originate in Belgium

• The Belgian high-performance R&D investors are mainly

active in the following sectors:

industrial engineering, pharmaceuticals &

biotechnoloy, electronics & electronical equipment,

health care equipment & services, chemicals and

aerospace & defence

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INVEST IN BELGIUM

Research & Development

1. Patent income deduction

• Deduction of 80% of the income from patents from the taxable basis, resulting in an effective tax rate of maximum

6,8% on this income

2. Investment deduction

• Investment deduction for R&D related investments

• deduction of 13,5% on the investment value (in one shot)

• OR 20,5% on the annual depreciation (spread deduction)

3. Exemption from withholding tax on the remunerations of researchers

• Principle: the salary withholding tax is normally retained on the remunerations paid to the researcher, but only 20%

of the retained amount of tax must be paid to the tax administration (= extra financial means for the employer) →

80 % exemption of the withholding tax !

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INVEST IN BELGIUM

Louvain-La-Neuve, Science Park Health , Environment, Engineering

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INVEST IN BELGIUM

Liège, GIGA 3 facilities (Total: 4 000m²)+ LabHotel (300 m²)

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INVEST IN BELGIUM

Gosselies , The complete innovation chain Research, tech platform, tech transfer, training, companies

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INVEST IN BELGIUM

Leuven, smart hub Gasthuisberg

One of the largest university hospitals in Europe < 2,000 beds Campus Biomedical Sciences

Focus on ICT and biotechnology Option International, DSP Valley, … Innovation and Incubation Centre Leuven.Inc

Bio-incubator I and II (devpt) ReMynd, OncoMethylome, Thrombogenics, Formac

Arenberg Science Park

Arenberg Bio-incubator

Largest nanotech R&D centre in Europe + Convergence Centre in NanoBio Houses Intel, Samsung, TI,…

IMEC

Large R&D intensive park DocPharma, ICOS, Hitachi, Honeywell, Philips,…

Haasrode Science Park

Established in 1425 30,000 students LRD Tech Transfer Office

K.U.Leuven

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INVEST IN BELGIUM

Ghent, smart hub Bio-incubator I & II

24 x 250 m² spaces Houses Ablynx, ActoGeniX, Algo-Nomics, Biomaric, BIP, Peakadilly Yakult

Science park

Bio-focused companies, e.g. Bayer Biosciences, Innogenetics, Devgen, Cropdesign,…

VIB

World centre for R&D in biotech Staff > 1,100

University of Ghent

World-class university 28,000 students Biotech and biomedical expertise

Inst. For Biomedical Tech

Combining engineering with biomedical expertise, drug eluted stents,… Staff 80, campus Univ. Hospital

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INVEST IN BELGIUM

Cost-effective office market

Source : Cushman & Wakefield, Office Space Across the World 2014

Office (prime rent location)

Total Occupancy Cost euro/m²/year

31

2122

895

718

593

556

540

506

439

485

395

393

0 500 1000 1500 2000 2500

London West-End

Paris

Geneva

Stockholm

Milan

Munich

Amsterdam

Madrid

Dublin

Warsaw

Brussels

INVEST IN BELGIUM

Industrial areas

Source : Cushman & Wakefield, Marketbeat Industrial Snapshots Q1 2015

Prime industrial rents €/m²/year

32

193

139

83,4

70

66

60

60

52

47

0 50 100 150 200 250

London (Heathrow)

Zurich

Frankfurt

Dublin

Warsaw

Madrid

Amsterdam

Paris

Brussels

INVEST IN BELGIUM

Cost-effective tax regime

Tax incentive for risk capital : Notional Interest Deduction

Principle Companies are allowed to deduct a fictitious interest calculated on the basis of their shareholders equity

Consequences Reduced effective tax rate

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INVEST IN BELGIUM

Effective (Average) Corporate Tax Rate (ECTR)

Sources : ZEW, Centre for European Economic Research, Manheim Effect Tax Levels – Final Report 2014

Especially in Belgium, the ECTR is considerably below statutory tax rates (-7,3%)

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26,7

22,6

28,2

39,4

24 22,4

36,5 37,7

0

5

10

15

20

25

30

35

40

45

Belgium Netherlands Germany France Italy UK USA Japan

ECTR (Effective Corporate Tax Rate)

34

25

31

38,9

30,9

21

37,9 35,7

0

5

10

15

20

25

30

35

40

45

Belgium Netherlands Germany France Italy UK USA Japan

NCTR (Nominal Corporate Tax Rate)

INVEST IN BELGIUM

Cost-effective tax regime

Fiscal Ruling

Principle The investor describes the facts to the tax administration, allowing him to know, in advance, how the tax laws are to be applied on a case by case basis

Consequences • Confidence to invest • Legally binding & accurate forecast

Scope of applications

Corporate tax, individuals tax, customs, VAT, etc.

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INVEST IN BELGIUM

Cost-effective tax regime

Foreign executive status

For the EMPLOYEE

• Exclusion of days performed outside Belgium

• Tax free allowances (relating to extra costs resulting from the Belgian employment)

For the EMPLOYER

• Reduction of employment cost for expats

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INVEST IN BELGIUM

Cost-effective tax regime

Foreign executive status

Annual gross salary: EUR 75,000

Tax due: EUR 9,997 or approx. 13% of gross salary

Annual gross: 75,000

Social security: -9,800

Tax free allow: -9,662

Balance 55,538

Cost of living: 2,500

Housing differential: 2,674

Tax equalisation: 4,488

9,662

40% travel: -22,215

Gross taxable: 33,323

Taxable: Tax free allowances:

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INVEST IN BELGIUM

Ease in establishing a business • Belgium ranks first among the EU27 countries for the fewest number of days

required for establishing a new business. • On-line start-up possible

Source: IMD World Competitiveness Yearbook 2015

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4 4 5

6 6 6

13

15

19

0

2

4

6

8

10

12

14

16

18

20

Belgium Netherlands France Denmark USA UK Spain Germany Luxembourg

INVEST IN BELGIUM

Making business in Belgium No restriction for foreigners

• Open economy: Belgium features a liberal business environment • No permission needed to set up a company • 100% foreign ownership is possible • No limitations on repatriation of capital and benefits • Approximate incorporation fee (for a SA/NV): 1 500 € • Easyness to set-up a company

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INVEST IN BELGIUM

Making business in Belgium Which legal form to choose for your company ?

Subsidiary

Main Differences Branch or Rep. Office LTD Joint Stock Company

Separate legal entity No Yes Yes

Minimum capital 0 18 550 € 61 500 €

Shares to bearer n/a No No

Registered shares n/a Yes Yes

Limited liability n/a Yes Yes

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INVEST IN BELGIUM

Incentives

Belgium 1. Investment Incentives

Calculated, as a percentage, on the purchase of :

• Building

• New equipment

• Intangible investments (patents, licenses, technical expertise whether patented or not)

Calculation of the grant is based on various criteria :

• Sector of activity

• Size : Large company or SME

• Employment creation

• Geographical area (in or out the investments zones)

Belgium 2. Research & Development Support

• Subsidy for Basic Industrial Research : 50% (up to 70% for SME’s)

• Advanced Loan for Applied Research : 50% (up to 70% for SME’s)

• Tax Incentives for R&D

3. Employment Incentives

• Recruitment

• Training

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INVEST IN BELGIUM

An open country for expats

• 140 000 European foreigners live in Brussels

• Life cost is cheaper than in most of the other European capitals

• Wide range of international schools, offering English, American and Japanese programs

• High quality health care system

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INVEST IN BELGIUM

Brussels High quality of life at a reasonable cost

Based on the indicators of OECD Better Life Index 2015, Brussels ranks 13th of 36 OECD members

In the cost of living index of more than 100 cities worldwide, Brussels is far more affordable than many major cities

Cost of living NY = 100

43

129,3

118

101,2 101 100 93 93

0

20

40

60

80

100

120

140

Source : OECD Better Life Index, 2015 Source : fDi Intelligence from the Financial Times Ltd, 2014

Rank Country

1 Australia

2 Norway

3 Sweden

7 United States

9 Netherlands

12 United Kingdom

13 Belgium

14 Germany

15 Austria

16 Ireland

17 Luxembourg

18 France

20 Japan

36 Turkey

INVEST IN BELGIUM

Cost of living of OECD cities In a survey on the cost of living, Brussels ranks 102nd of 207 cities and 45th out of the OECD cities in the ranking.

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Source: Mercer Human Resource Consulting, 2015.

Rank City

3 Zurich, Switzerland

11 Tokyo, Japan

12 London, UK

16 New York City, USA

24 Copenhagen, Denmark

38 Oslo, Norway

46 Paris, France

47 Melbourne, Australia

56 Vienna, Austria

69 Amsterdam, Netherlands

87 Munich, Germany

102 Brussels, Belgium

INVEST IN BELGIUM

Brussels High quality of life at a reasonable cost

Source: The Global Property Guide, Rental Yields, 2014

Average rent in urban location (apartment 120m2)

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1338 1345 1580

1750

2675

3938

6578

0

1000

2000

3000

4000

5000

6000

7000

Brussels Madrid Milan Frankfurt Amsterdam Paris London

Euro

/Mo

nth

INVEST IN BELGIUM

Our services

• Tax and legal information

• Company registration

• Build up local high level network

• Prospection of an office or a site

• Funding & public financial support

• Guidance to public bodies

• Recruitment & employment legislation

• Sectoral expertise & market intelligence

• Technological transnational partnerships

We can bring support in the following areas:

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INVEST IN BELGIUM

For further information

Flanders Investment & Trade

Boulevard du Roi Albert II 37 - 1030 Brussels

www.investinflanders.com - invest@fitagency.be

T : +32 2 504 87 11 - F : +32 2 504 88 99

Wallonia Export & Investment Agency Office For Foreign Investors

Avenue des Dessus de Lives 6 - 5101 Namur-Loyers

www.investinwallonia.be - welcome@investinwallonia.be

T : +32 81 33 28 50 - F : +32 81 33 28 69

Brussels Invest & Export

c/o Ministry of Brussels-Capital Region

Avenue Louise 500 - 1050 Brussels

www.investinbrussels.com – info@investinbrussels.com

T : +32 2 800 40 00 - F : + 32 2 800 40 01

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The Liaison Cel

Federal Public Service Economy

Contact person: Mrs Colette Vanstraelen

Colette.vanstraelen@economie.fgov.be

T : +32 2 277 72 82