INVEST IN BELGIUM Invest in Belgium 1. INVEST IN BELGIUM Springboard for a pan-European development...

INVEST IN BELGIUM

Invest in Belgium

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INVEST IN BELGIUM

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 center

International talent pool and innovation centre

Competitive real estate

Advantageous business environment

High quality of life

INVEST IN BELGIUM

Belgium in the centre of the market

75 %of the EU

Market (GDP)

40 %of the

consumers

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INVEST IN BELGIUM

• 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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Belgium in the centre of the market

INVEST IN BELGIUM

A perfect assessment market

• Gateway to European market

• Multi-cultural population

• European diversity challenge on a small scale

• Belgium is 2nd in FDI Attraction Index

Importation83% GDP

Exportation84% GDP

Source : The World Bank

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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


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INVEST IN BELGIUM

Developed road and railway networksBelgium has the densest road network in the world

Switzerland

France

Hong Kong

Slovenia

Hungary

Luxembourg

Japan

Singapore

Netherlands

Belgium

1.73

1.73

1.88

1.93

2.1

2.2

3.18

4.74

5

5.04

USA

Japan

France

UK

Netherlands

Germany

Belgium

0.02

0.05

0.06

0.07

0.07

0.09

0.12

RoadsDensity of network, km per square km

RailroadsDensity of network, km per square km

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Paris – 1 hour 20 London – 1 hour 55 Amsterdam – 1 hour 55 Cologne – 1 hour 47 Frankfurt – 3 hour

19 connections / day 16 connections / day 10 connections / day 9 connections / day 4 connections / day

INVEST IN BELGIUM

Belgian airportsEurope and the world in a flap of wings

Brussels Airport

• International crossroads connecting the capital of Europe with the world

• Landing of most long-haul international flights with connections from major hub such as London, Amsterdam and Frankfurt , 2 daily flights to New-York and daily services to Toronto, Mumbai and Delhi

• Cargo hub in the heart of Europe

• Awarded “ Best Airport in Europe” (2012) by Airport Council International

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INVEST IN BELGIUM

Belgian airportsEurope and the world in a flap of wings

Brussels South Charleroi Airport (Cargo airport)

• 200 ha Business park : “Aeropole”• 4Mio passengers in 2009 ; Aim 2010 : 5 Mio• 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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Num

ber o

f pas

seng

ers/

Mill

ion

Annu

al to

nnag

e ev

oluti

on

INVEST IN BELGIUM

Belgian SeaportsPort 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 andNorthern half of France

• Largest recycling paper plant in the world

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INVEST IN BELGIUM

Belgian Inland PortsPort 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


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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• 1500 International Professional Federations• Representation of most European Political Parties and Regions

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Major multinationals have their decision center in Belgium:• Approximately 2.300 foreign companies have set-up European HQ or sales

subsidiary in Belgium

• Brussels is the best conference city in Europe and the second best conference city worldwide (Source : UIA Conference Cities Ranking 2011)

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

INVEST IN BELGIUM


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INVEST IN BELGIUM

Education & skillsUniversity Education

For information :

India 5,58Russia 3,9Brazil 3,7China 4,4

Sources : University Education (IMD World Competitiveness Yearbook 2012)

Language Skills

For information :

India 7,35China 4,37Russia 4,06

Language skills (IMD World Competitiveness Yearbook 2012)

Japan

France

UK

USA

Netherlands

Belgium

Germany

3.89

5.77

6.26

6.91

7.06

7.53

7.57

Japan

France

UK

USA

Germany

Belgium

Netherlands

2.71

3.3

4.02

4.4

7.22

7.5

8.32

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INVEST IN BELGIUM

Labor marketGlobal Productivity Index

Sources : Conference Board 2012

Salary Cost (US $- for a Director)

Japan

UK

Germany

France

Netherlands

Belgium

USA

44.5

50.89

56.89

58.93

60.74

61.85

63.27

UK

Netherlands

France

Belgium

Japan

Germany

USA

188779

216732

226577

235364

244390

264020

309778

Countries with high productivity GDP/worked hour

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

Sources : IMD World Competitiveness Yearbook 2012

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INVEST IN BELGIUM

Research & Development

Ranking Availability of latest technology

Capacity for innovation

Quality of scientific research institutions

Availability of scientists and engineers

Belgium 9 11 4 19

Netherlands 4 8 8 24

Germany 17 3 10 40

France 16 10 15 22

UK 6 12 3 12

Source: World Economic Forum

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INVEST IN BELGIUM


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INVEST IN BELGIUM

Cost-effective office market

Source : Cushman & Wakefield, Office Space Across the World 2013

Office (prime rent location)

Total Occupancy Cost euro/m2/year

London West-End

Paris

Geneva

Stockholm

Milan

Munich

Amsterdam

Madrid

Dublin

Prague

Brussels

0 500 1000 1500 2000 2500

2137

915

729

606

583

533

500

439

437

415

405

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INVEST IN BELGIUM

Industrial areas

London

Paris

Dublin

Frankfurt

Amsterdam Airport

Warsaw

Madrid

Brussels

0 50 100 150 200 250

235.43

123.58

101

97.2

95.02

85.38

79.2

56.7

Source : Cushman & Wakefield, Office Space Across the World 2011

Warehouse €/m2/year

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INVEST IN BELGIUM


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Advantageous business environment• Corporate Tax Rate• Support to R&D• Incentives


INVEST IN BELGIUM

Effective (Average) Corporate Tax Rate (ECTR)

Sources : ZEW, Centre for European Economic Research, Manheim Effect Tax Levels – Final Report 2012

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

Belgium Netherlands Germany France Italy UK USA Japan0

5

10

15

20

25

30

35

40

45

26.3 27.5 28.2

34.2

25.1 25.2

36.540.1ECTR (Effective Corporate Tax Rate)

Belgium Netherlands Germany France Italy UK USA Japan0

5

10

15

20

25

30

35

40

45

34

25

31

37.1

31.3

24

37.9 38.6NCTR (Nominal Corporate Tax Rate)

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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


Fiscal Ruling

PrincipleThe 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


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 expat’s

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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 14,5% on the investment value (in one shot)

• OR 21,5% 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 25%

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

75 % exemption of the withholding tax !

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INVEST IN BELGIUM

IncentivesBelgium1. 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)

Belgium2. 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

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 2012

Belgium Denmark US France Netherlands UK Germany Luxembourg Spain0

5

10

15

20

25

30

46 6

78

1315

19

28

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INVEST IN BELGIUM


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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

BrusselsHigh quality of life at a reasonable cost

In a quality of living survey of 50 cities, Brussels ranks 22th worldwide and 11th in the EU

Quality of living indexNY = 100

In a cost of living survey of 50 cities worldwide, Brussels is far more affordable than many major cities

97

98

99

100

101

102

103

104

105

106

107

105.7105.4

105 104.8

102.8

101.6

100

Sources : Mercer Human Resource Consulting, 2012

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Toky

oZu

rich

Copenhag

en

London

Melbourn

ePari

s

New Yo

rk City

Stockh

olmPrag

ue

Bratisla

va

Madrid

Brusse

ls

1st 4th9th 10th 12th 15th 18th

22th 25th 28th 31th 32th

Source: Mercer Human Resource Consulting, 2011.

INVEST IN BELGIUM

BrusselsHigh quality of life at a reasonable cost

Source: The Global Property Guide, Rental Yields, 2012

Average rent in urban location (appartment 120m2)

Brussels Frankfurt Milan Madrid Amsterdam Paris London 0

1000

2000

3000

4000

5000

6000

14381698 1862 1865

2376

4397

5284

Euro

/Mon

th

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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

Gaucheretstraat 90 - 1030 Brussels

www.investinflanders.com - [email protected]

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 - [email protected]

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 – [email protected]

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

[email protected]

T : +32 2 277 72 82

http://www.investinflanders.com/

mailto:[email protected]

http://www.investinwallonia.be/

http://www.investinbrussels.com/



INVEST IN BELGIUM Invest in Belgium 1. INVEST IN BELGIUM Springboard for a pan-European development...

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