Preface I. Belgium in a nutshell

Ser vice s For Foreign In v est o rs Federal Service For Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

Federal Public Service Foreign Affairs Rue des Petits Carmes 15 B-1000 BRUSSELS Tel: +32 2 501 80 60 Fax: +32 2 501 37 65 [email protected] www.diplomatie.be

1. Facts and figures���������������������������������������������������������������������������������������2 2. Belgium, one country, three regions�����������������������������������������������������������3 3. Economy ���������������������������������������������������������������������������������������������������5

Service for Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

II. Strengths & Opportunities 1. 2. 3. 4.

Fiscal Department For Foreign Investments Federal Public Service Finance Rue Marie-Thérèse 1 - box 4 B-1000 BRUSSELS Tel.: +32 2 579 38 66 [email protected] www.fiscus.fgov.be

Regional Flanders Region Flanders Investment & Trade Gaucheretstraat 90 B-1030 BRUSSELS Tel.: +32 2 504 88 71 Fax: +32 2 504 88 70 [email protected] www.fitagency.be

Brussels-Capital Region Brussels Enterprise Agency Tour & Taxis Avenue du Port 86 c box 211 B-1000 BRUSSELS Tel.: +32 2 422 00 20 Fax: +32 2 422 00 43 [email protected] www.bea.irisnet.be

An excellent business infrastructure ���������������������������������������������������������6 Prominent location�����������������������������������������������������������������������������������10 Highly qualified workforce �����������������������������������������������������������������������11 Meeting your financial needs�������������������������������������������������������������������11

III. Incentives 1. Fiscal issues �������������������������������������������������������������������������������������������12 2. Financial aid���������������������������������������������������������������������������������������������16 3. Employment and training incentives �������������������������������������������������������16

Wallonia Region Ministry of the Wallonia Region Office for Foreign Investors in Wallonia Rue J Materne 115 B-5100 NAMUR Tel. + 32 81 33 28 50 Fax + 32 8133 28 69 [email protected] www.ofisa.be

Investing in Belgium

IV. Quality Of Life

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Legal disclaimer

Your European Facility in Belgium

The Investment Guide is designed to meet the need of a general overview on regulations, laws and procedures that may concern a foreign investor. The Service for Foreign Investments has made every effort to ensure the accuracy of this publication. However, no rights can be obtained from its texts.

Your European facility in Belgium

18

Preface I. Belgium in a nutshell

Ser vice s For Foreign In v est o rs Federal Service For Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

Federal Public Service Foreign Affairs Rue des Petits Carmes 15 B-1000 BRUSSELS Tel: +32 2 501 80 60 Fax: +32 2 501 37 65 [email protected] www.diplomatie.be

1. Facts and figures���������������������������������������������������������������������������������������2 2. Belgium, one country, three regions�����������������������������������������������������������3 3. Economy ���������������������������������������������������������������������������������������������������5

Service for Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

II. Strengths & Opportunities 1. 2. 3. 4.

Fiscal Department For Foreign Investments Federal Public Service Finance Rue Marie-Thérèse 1 - box 4 B-1000 BRUSSELS Tel.: +32 2 579 38 66 [email protected] www.fiscus.fgov.be

Regional Flanders Region Flanders Investment & Trade Gaucheretstraat 90 B-1030 BRUSSELS Tel.: +32 2 504 88 71 Fax: +32 2 504 88 70 [email protected] www.fitagency.be

Brussels-Capital Region Brussels Enterprise Agency Tour & Taxis Avenue du Port 86 c box 211 B-1000 BRUSSELS Tel.: +32 2 422 00 20 Fax: +32 2 422 00 43 [email protected] www.bea.irisnet.be

An excellent business infrastructure ���������������������������������������������������������6 Prominent location�����������������������������������������������������������������������������������10 Highly qualified workforce �����������������������������������������������������������������������11 Meeting your financial needs�������������������������������������������������������������������11

III. Incentives 1. Fiscal issues �������������������������������������������������������������������������������������������12 2. Financial aid���������������������������������������������������������������������������������������������16 3. Employment and training incentives �������������������������������������������������������16

Wallonia Region Ministry of the Wallonia Region Office for Foreign Investors in Wallonia Rue J Materne 115 B-5100 NAMUR Tel. + 32 81 33 28 50 Fax + 32 8133 28 69 [email protected] www.ofisa.be

Investing in Belgium

IV. Quality Of Life

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Legal disclaimer

Your European Facility in Belgium

The Investment Guide is designed to meet the need of a general overview on regulations, laws and procedures that may concern a foreign investor. The Service for Foreign Investments has made every effort to ensure the accuracy of this publication. However, no rights can be obtained from its texts.

Your European facility in Belgium

18

PREFACE In an increasingly global and liberalised world, the conquest of new markets becomes essential. Globalisation concerns Belgium directly since we are a country of a rather small size that has built its wealth on its openness to the world, in trade as well as investments. Consequently, having an accessible policy towards foreign investments is a crucial challenge for Belgium. Public authorities are fairly conscious of the great relevance of foreign investment for Belgium and today, our country is ready to meet this challenge. The decision to invest abroad and set up operations in any location is not an easy one. It involves many issues and has to be based on sound business fundamentals such as proximity to markets, availability and labour costs, telecom requirements and other aspects.

When it comes to location qualities, Belgium has a lot of assets. The country is actually recognised as the natural gateway to Europe, the very heart of Europe’s richest market. The density of Belgium’s transportation network, its telecommunications infrastructure and high standard of services are certainly parameters that will become significant when deciding to expand your facilities. Foreign Direct Investment into Europe will most likely continue to grow significantly, driven by a keen interest in the potential of a unified European market. In 2004, according to UNCTAD1 statistics, Belgium ranked fifth in terms of incoming FDI. To summarise, Belgium offers huge capabilities to welcome your businesses. Our multilingual population and our multicultural character are additional advantages. In Belgium, you will be able to meet your own challenges. 

Marc Verwilghen Minister of Economy, Energy, Foreign Trade and Science Policy 1

UNCTAD: United Nations Conference on Trade and Development

I. BELGIUM IN A NUTSHELL

1. Facts and Figures Demography

• Total population: • Density of population: • Foreign population:

10.5 millions inhabitants 342.2 inhab./Km2 870,862

Society

• • • •

Official languages: Dutch, French and German Percentage in education - age group 20/24: 47.1 % Mobility rate : 76 % Number of active internet connections: 2,150,000

Geography • • • •

Surface area: Borders: Infrastructure: - Motorways: - Secondary roads: - Railways: - Commercial waterways: - International airports: - Seaports: Climate:

30,528 km2 1,444.5 km 1,747 km 14,252 km 3,536 km 1,600 km 5 4 Temperate

Economy (2004)

• • • •

GDP: 288 billion EUR GDP per capita: 27,810 EUR Inflation rate: 2.1% (2004) Exports (goods and services): 83.8 % of GDP

Sources: National Institute of Statistics, National Bank of Belgium, OCDE; 2004 2

Mobility rate = percentage of the Belgian population travelling to work daily.

Your European facility in Belgium

2. Belgium • One country, three regions... Belgium is a fairly young state. Nevertheless it has an eventful history characterised by cultural intermixing, a broad commercial base and a strong tradition of artistic skill, scientific endeavour and craftsmanship. In its more recent political history, growing political awareness of the three linguistic communities has been instrumental in shaping Belgium, and four reforms have transformed the country into a federal state. The federal system combines three levels of power that are strictly autonomous in their respective area of competence. The three Communities are competent to deal with issues affecting their population such as language, culture and education, and the Regions are competent to deal with territorial issues, such as urban development, environment and employment. Some domains remain under federal control, such as justice, diplomacy and defence. 2 

The community of Flanders

The French community

The German speaking community

The Flanders region

The Brussels-Capital region

The Wallonia region

Your European facility in Belgium

• ...At the heart of a dynamic Europe Furthermore, Belgium has played an instrumental role at the international level, being a founding father of the European Union (EU). There are currently 25 member States of the European Union: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and the United Kingdom. Two other countries, Bulgaria and Romania will become members in 2007. Not only do the twenty-five share a common set of values, but they also have the common aim of ensuring economic development and increasingly strong social cohesion. At the operational level, the Member States have opted to concede certain areas of competence to European institutions, which are now responsible for managing the so-called Community policies (such as the euro, the free circulation of people, goods and capital, etc.). To pave the way for a European Union in its new dimension, the institutions and decision-making process will have to be redefined to ensure a smooth running of the institutions without jeopardising the development of the community policies. EUROPEAN UNION (EU) MEMBERS ■ 1. AUSTRIA 2. BELGIUM 3. CYPRUS 4. CZECH REPUBLIC 5. DENMARK 6. ESTONIA 7. FINLAND 8. FRANCE 9. GERMANY 10. GREECE 11. HUNGARY 12. IRELAND 13. ITALY 14. LATVIA 15. LITUANIA 16. LUXEMBURG 17. MALTA 18. POLAND 19. PORTUGAL 20. SLOVENIA 21. SLOWAKIA 22. SPAIN 23. SWEDEN 24. THE NETHERLANDS 25. UNITED KINGDOM EEA MEMBERS ■ EU MEMBERS PLUS: 26. ICELAND 27. LIECHTENSTEIN 28. NORWAY

26

7 28 6

23

14

5

12

15 25 24 2 16

18

9 4

8

1

27 19

22

20

11

29

13

30

10

CANDIDATE MEMBERS ■ 29. ROMANIA 30. BULGARIA.

17

Your European facility in Belgium

21

3

3. Economy When considering investment in a country, its overall economic performance and economic policy are of enormous importance, whereas Belgium’s economy is a flourishing, open and focused one.

• Flourishing The future looks promising for the Belgian economy. Private consumption, the motor of the economy will rise, fuelled by fiscal reform and higher consumer confidence. Economic growth, wage moderation and cut in social contributions will stimulate employment.

• Structure of activities Belgium was one of the first industrialised countries in the world. Today the economy is more oriented towards the production of services (specially focusing on high added value). Nevertheless, the manufacturing sector still remains an important strategic feature and is at the origin of a lot of services. Structure of Activities 7%

1%

13%

Market services 54%

25%

Industry Non-market services Indirect measured services Primary sector

• Open The Belgian economy is one of the most internationalised in the world, with exports of goods and services accounting for more than 83.8 % of the Gross Domestic Product (GDP) in 2004. Most of the export transactions (75 %) take place within the European Union.

• Focused The objectives of Belgium’s economic policy can be summarised as follows: - Ensuring the competitiveness of the Belgian financial and economic environment in a global economy. - Further reduction of administrative burden via one-stop-shopping, total quality management of the administration, e-government. - Increase of the net disposable income of households.

Your European facility in Belgium

4 

II. STRENGTHS AND OPPORTUNITIES

1. Belgium: an excellent business infrastructure In order to benefit from natural and historical location factors, a host country for foreign investments should have a first class infrastructure, so does Belgium.

• Road The Belgian motorway system is modern and well developed. Every kilometre of highway is lit all night long and toll-free. Seven international expressways connect the country to the French, German and Dutch motorways. The proximity of the Eurotunnel (linking the Continent to the UK) is an additional asset. THE NETHERLANDS

Antwerp

Gent

GERMANY

Brussels Liège Charleroi FRANCE

LUXEMBURG

FINLAND

SWEDEN ESTONIA

IRELAND

LATVIA

DENMARK GREAT BRITAIN

LITHUANIA THE NETHERLANDS

BELGIUM

POLAND

GERMANY LUX. CZECH REPUBLIC SLOVAKIA

FRANCE AUSTRIA SLOVENIA PORTUGAL

HUNGARY

SPAIN

ITALY

GREECE

Your European facility in Belgium

MALTA

CYPRUS

• Rail Belgium’s railway network is one of the most concentrated in the world, providing easy transport to every commercial and industrial centre from Scandinavia to Turkey. This network makes sure that every investor whose plant sites require a rail siding will find one. The HST (High-Speed Train) network links Brussels to London, Amsterdam, Frankfurt and Paris (Brussels – Paris in 1h25, Brussels – London in 2h20). This HST constitutes the fastest and most convenient transportation facility from Brussels to Europe’s major capitals.

THE NETHERLANDS

Antwerp

Gent

GERMANY

Brussels Liège Charleroi FRANCE

LUXEMBURG

FINLAND

6 

SWEDEN ESTONIA

IRELAND

LATVIA

DENMARK GREAT BRITAIN

LITHUANIA THE NETHERLANDS

BELGIUM

POLAND

GERMANY LUX. CZECH REPUBLIC SLOVAKIA

FRANCE AUSTRIA SLOVENIA PORTUGAL

HUNGARY

SPAIN

ITALY

GREECE

Your European facility in Belgium

MALTA

CYPRUS

• Water Belgium offers world-class water transport facilities with the port of Antwerp (second largest seaport in Europe), the deepsea container port of Zeebrugge, the port of Ghent and the inland ports of Liège and Brussels, Liège being the second European inland port. Rivers and canals expand across the country, establishing a highly developed inland waterway system and connecting it to the main rivers and canals of the neighbouring countries. Moreover, the ports are fully integrated with the road and rail networks and, as such, are a prime example of multimodality. THE NETHERLANDS

Zeebrugge Antwerp

Gent

Oostende

Gent

GERMANY

Brussels

Antwerp

Brussels

Liège

Liège

Charleroi FRANCE

LUXEMBURG

Belgian inland waterways

Main Belgian ports

• Air Brussels National Airport offers a range of intra-European and international flights, with flying times to other major European centres generally within two hours. An annual 16 million passengers transit through Brussels National

Oostende

Antwerp

Brussels

Gosselies

Liège

Airport and the figures are on the rise. It is also the fifth largest cargo airport in Europe, with the fastest air-cargo handling and distribution centre in the European Union and a turnover of 700,000 tons (figures of 2005). Thanks to permanent upgrading, the activities on the regional airports of Charleroi, Liège, Antwerp and Ostend are equally expanding, with growth both in freight and passenger traffic. Moreover, all Belgian airports receive excellent scores for punctuality, safety standards and quality of service. Your European facility in Belgium

• Telecom Belgium’s top rate telecommunications network is an important asset in this era where fast and secure transfer of information is one of the key success factors. Following the privatisation and liberalisation (started in 1998) of the Telecom market numerous new players entered the market. The major player, Belgacom, faces increasing competition from resellers, and operators like Telenet, MCI, BT, Mobistar, Colt Telecom, etc. The country now has an advanced network offering large bandwidth, complemented by lowcost distance telecom charges. With a fixed broadband penetration rate of 14% in July 2004 - i.e. nearing twice the EU15 average according to the 10th European Implementation Report - Belgium is reaching the top of the EU25 countries ranking. Existing and new technologies, FWA (Fixed wireless access), xDSL (Digital Subscriber Line), WiFi (Wireless Fidelity), WiMAX (World Interoperability for Microwave Access), VOIP (voice over IP), GPRS (General Packet Radio Services) and UMTS (Universal Mobile Telecommunication System) are in use and grow further. In addition to a high density of telephone connections, Belgium has a household cable penetration of over 90%, which is paving the way for digital TV. The resulting dynamics of the competition between cable and ADSL also gives broadband internet a boost and creates tremendous possibilities in the application of new technologies: • E-business is not new in Belgium, it boasts a large, growing number of companies providing services for electronic business, as well as a business community shifting from electronic data interchange systems to Internet-based solutions. • Those assets in terms of electronic communication infrastructures are enabling much synergy in the ICT sector, which should enhance workforce mobility, distribution and logistic, but also e-learning capabilities, e-government, e-health and e-security programmes.

Your European facility in Belgium

8 

2. Prominent location Despite occupying a key role at the heart of Europe, Belgium has a surface of only 30,528 km2. It is at the heart of the European Continent and a market of 456 million affluent customers. Obviously, maps do not tell the whole story and Belgium’s physical size is in fact inversely proportional to the niche it has carved out for itself as the home to a host of international institutions (European Union, NATO, etc.) and as the scene for a wealth of activities of all kinds. Owing to its strategic position halfway between the Mediterranean and Northern Europe, Belgium - a naturally hospitable land - has become a magnet and a melting pot of cultures and a busy meeting place for artistic, cultural, economic, scientific, political and technological activity. Within 300 km are cities like London, Paris, Amsterdam or Frankfurt. Add another hour and you will be in Lisbon, Madrid, Stockholm, Rome, Athens, Warsaw, Berlin, Dublin and other European business centres.

Your European facility in Belgium

3. Highly qualified workforce Belgium’s workforce is multilingual, skilled (the Belgian educational system is reputed for its quality), motivated (very low absenteeism), and very productive. Labour ethics, working drive and staff loyalty is high. Universities and other higher education institutes offer the broadest spectrum of possibilities. They have links to the business sector to ensure that both training and research anticipate the needs of the global marketplace. This cooperation has led to the creation of numerous successful spin-offs. Overall Productivity GDP per employee per hour USA=100 Luxembourg Ireland Denmark Belgium USA France Sweden United Kingdom Japan Netherlands Germany China Mainland India

125,3 117,3 105,3 100,2 100,0 98,6 94,1 89,9 87,5 86,7 83,5 10 11

2,6 1,5 0

20

40

60

80

100

120

140

Source: World Competitiveness Yearbook 2005 - IMD

4. Meeting your financial needs Given the presence of nearly 104 financial institutions, it is only natural that a broad range of services aimed at funding commerce and industry has been developed. On top of basic financial institutions, like deposit and saving banks, venture capital companies and business angels networks have developed significantly these last years. Belgium’s venture capital market is characterised by a focus on the start-up phase of high-tech investments. Next to this, Euronext, the first pan-European stock exchange was established in 2000 by the merger of the Amsterdam, Brussels and Paris stock exchanges, facilitating companies to attract foreign equity. Nasdaq Europe, a stock market dedicated to high technology is fully adapted to the needs and requirements of the European market.

Your European facility in Belgium

III. INCENTIVES Perhaps the most important incentive is Belgium’s long-standing tradition of welcoming foreign investments. The general principle is one of “global equity”: no discrimination is made between domestic and foreign companies.

1. Fiscal issues Personal Individuals residing in Belgium are taxed on their worldwide income. Taxable income consists of real estate income; salaries and wages and self-employment income and other income of all kinds. Normal professional expenses, special deductible expenses and personal deductions and allowances may be deducted. The individual income tax varies according to the net taxable income from 0% to 50%. Non-residents and certain expatriates are taxable only on their Belgian source income.

Corporate All types of commercial companies resident in Belgium are subject to corporate income tax. This tax is levied on worldwide income (but Belgium’s tax treaties substantially mitigate worldwide taxation). Belgian resident companies as well as Belgian branches of foreign companies are therefore taxed on their foreign source income to the extent that it is linked to their activity. Foreign companies are taxed at a 33.99% nominal ordinary tax rate. For small and medium sized companies (SMEs) with a taxable profit not exceeding 322,500 eur, the tax rate shall drop to 24.98% at the lower end of the tax scale.

Your European facility in Belgium

Several incentives have been implemented at the fiscal level in order to offer foreign investors an ideal business environment.

Fiscal ruling The tax ruling is a unilateral written declaration by the Tax Authorities at the request of a (potential) taxpayer about the application of fiscal law in a specific situation, which has not yet occurred, and as described by the taxpayer. This ruling will be issued within reasonable term. Advance tax rulings are of particular importance in evaluating possible net profits of a planned investment project. Moreover, the possibilities of these advance rulings have been enlarged and the procedures reorganized in order to make them smoother, more rapid and more efficient. A specific fiscal scheme exists for headquarters. The taxable basis of these headquarters is determined on the basis of their operational expenses and spendings. The profit mark-up is determined on a case-by-case basis through a “case-by-case” ruling.

The notional interest deduction Through the grant of a notional interest deduction, Belgium’s attractiveness for capital intensive companies as well as, for example, for equity funded headquarter and treasury centres of multinationals will also improve further. Both Belgian companies and foreign companies with a Belgian permanent establishment or real estate may be granted a tax deduction (the deduction is not reflected in the financial accounts) equal to a percentage of the “capital at risk”.

Your European facility in Belgium

12 13

“Capital at risk” would be determined as the total equity, including retained earnings and accumulated reserves, as stated in the non-consolidated opening balance sheet of the taxable period (upward or downward adjustments of the risk capital are taken into account on a pro rata basis), but after elimination of the following items: • the net value of own shares and shares held in other companies that are accounted for as fixed financial assets; • the net value of assets allocable to foreign permanent establishments and of foreign immovable property and property rights, the income of which would be tax-exempt in Belgium based on double tax treaties; and capital grants (subsidies). Besides generally reducing the effective tax rate for existing corporate taxpayers in Belgium (including permanent establishments), the notional interest deduction should offer an attractive international tax planning tool for group financing and licensing activities, supply chain management restructuring, and real estate. In addition, it may prove to be an incentive for multinational groups to maintain operations, currently conducted in their existing Co-ordination Centres, in Belgium. The draft bill introducing the notional interest deduction has been submitted in Parliament in June 2005, and is to be applied as from January 1, 2006.

Your European facility in Belgium

Tax regime for expatriates Certain foreign executives, specialists and researchers residing temporarily in Belgium are eligible for a special tax regime that treats them as non-residents. Qualifying individuals are taxed only on salary or director’s fees relating to professional activities performed in Belgium. For the days spent on business outside Belgium they benefit from the “travel exclusion”. Certain costs and expenses are attributable to the employer and their reimbursement is consequently not taxable on behalf of the employee. These costs have been defined as the excess of expenses the employee incurs due to his repatriation to Belgium. They include one time expenses as moving expenses and installation costs, and on-going expenses as cost of living, housing, school fees, emergency trips. These allowances are not considered as taxable income and can therefore be exempt from Belgian personal income tax. This favourable measure lowers the taxable personal income and also minimizes the salary cost of the foreign employee in Belgium. For each expatriate, the employer has to file a request to the tax authorities. There are also a number of fiscal exemptions including a.o. exemption from tax prepayment on real property income, the possibility of accelerated depreciation, etc. Fiscal exemptions are set at federal level but since they are related to investment projects decided upon by the regional authorities, the projects must be filed with the appropriate Region.

Your European facility in Belgium

14 15

2. Financial aid Financial aid is granted by the regional authorities. The level of a grant may vary slightly from Region to Region. This level depends upon criteria such as employment creation, technological composition and importance of the projected investment in the Region. Additional financial incentives can be obtained in some areas with the support of EU structural funds.

3. Employment & Training incentives A number of employment incentives have been issued. Most of them are managed by the regional authorities, but some important measures in favour of employment are managed on the federal level. The Belgian federal government has introduced various measures with the aim of reducing social security charges payable by employers. A new scheme came into force on 1 January 2004. This scheme applies to all employers in the private sector and consists of two types of reduction : the structural reduction and the target-group reduction. Structural reduction takes the form of a general flat-rate reduction (400 EUR per quarter per worker). In cases of remuneration below or in excess of a wage level determined by royal decree, a low or a higher wage supplement is added to the fixed sum. In addition to the structural reduction, the employer may benefit from one target-group reduction (amount of 400 EUR or 1,000 EUR per quarter); the target-group reduction applies to the following particular categories of workers: elderly employees, long term jobseekers, first recruitments, low skilled young employees, employees benefiting from a collective labour time reduction or from a four-day working week, workers victim of a restructuring.

Your European facility in Belgium

Another federal initiative is the “Activa” Plan that aims at reintegrating jobseekers into the labour market by granting (apart from the reductions in employers’ social security contributions) an “active” unemployment benefit (termed “employment allowance”, set at 500 EUR per month for a worker on a full-time basis), which the employer can deduct from the net wage to be paid. To be eligible for employment allowance, the employee must have been registered as unemployed jobseeker for at least 24 months (if under 45 years of age) or for at least 18 months (if aged over 45) The regional authorities award premiums in case of recruitment of some categories of unemployed persons (long term unemployed, low skilled workers, young jobseekers, …). Different types of incentives are available according to the region’s specific characteristics and priorities. The Flemish government stimulates companies to offer training to their employees through training cheques of 30 EUR. The government pays 15 EUR, the other half is paid by the company. These cheques allow companies to pay for their employees’ training courses on condition that the training is provided by “recognised training centres”. A similar system exist in Wallonia, any SME can obtain training cheques, depending on the total number of employees. The cheques have a value of 15 EUR each. The combined federal and regional measures can be supplemented at the sector level with additional incentives in case of recruitment. The intervention of the sector level social funds depends upon the main activity of the company in the sector to which it belongs.

Your European facility in Belgium

16 17

IV. QUALITY OF LIFE Belgium and the Belgian cities are rich in terms of history and culture. Cities like Brussels, Antwerp, Bruges, Ghent and Liège are renowned for their rich and varied architecture, mirroring centuries of history. They combine both historical and contemporary aspects in a unique way. Belgian architect’s schools have a proud achievement with works of Horta and Van de Velde reflecting the riches of an incomparable past. Those in pursuit of culture will find themselves spoilt for choice. Belgium has a reasonably gentle climate with no harsh season. Temperatures average between 12° and 23° C (54° and 72° F) in summertime, and between 0° and 6° C (32° and 43° F) in winter. One can find Belgium’s many museums splendid shelters, with more than eighty to choose from in Brussels alone. Antwerp boasts the house created by the genius of Rubens, not to mention a wealth of his masterpieces. One can never tire of the works painted by Anthony van Dyck or Hans Memling. Pieter Breughel will draw you into the rhythm of his village dances. The variety and force of contemporary art is not less impressive. James Ensor will bewitch you with his masked shimmerings and human masses, while the surrealist masters Magritte and Paul Delvaux continue to weave their own strange magic. The SMAK (Museum for Contemporary Art) in Ghent is renowned for both its permanent collection (Appel, Bacon, Panamarenko, etc.) and its provocative exhibitions. The other forms of art are of course well represented through numerous theatres, ballet and opera companies and concert halls where events like the famous Queen Elizabeth competition are held.

Your European facility in Belgium

Being the fatherland of Toots Thielemans, Django Reinhardt and Jacques Brel, Belgium truly is a musical hub. Numerous clubs and bars offer concerts and jam sessions in various styles throughout the whole year while festivals take place during summer (Rock Werchter, Francopholies de Spa…). Worth mentioning are famous cartoon characters like Tintin and the Smurfs. As a dynamic country, Belgium offers a wide variety of sport and recreational facilities. There are a great number of excellent public golf courses, indoor and outdoor tennis courts, bowling alleys and innumerable swimming pools and basketball courts. All parts of the country have sports halls and grounds. Soccer and cycling are particularly popular here. From squash to mountain bike, from skiing to windsurfing, from the forests of Ardennes to the shores of Flanders, Belgian sports run the course. Gourmets claims that Belgium has more two and three stars restaurants per square kilometre than any other country. Belgians love to eat and they love to eat well. So it is not surprising that the country has an abundance of restaurants. Belgian cuisine features a number of delicacies, and experimentation is encouraged. Every town has developed its own traditions and culinary specialities in the course of the centuries. Belgium is famous for its wide variety of beers – more than 500 to choose from – and its delicious chocolates. The country is also rich in foreign cuisine. Whether your preference ranges from French to Italian or Asian to American, it is all served beautifully in Belgium. Being in Belgium means savouring the fine things in life.

Your European facility in Belgium

18 19

NOTES

Your European facility in Belgium

Preface I. Belgium in a nutshell

Ser vice s For Foreign In v est o rs Federal Service For Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

Federal Public Service Foreign Affairs Rue des Petits Carmes 15 B-1000 BRUSSELS Tel: +32 2 501 80 60 Fax: +32 2 501 37 65 [email protected] www.diplomatie.be

1. Facts and figures���������������������������������������������������������������������������������������2 2. Belgium, one country, three regions�����������������������������������������������������������3 3. Economy ���������������������������������������������������������������������������������������������������5

Service for Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

II. Strengths & Opportunities 1. 2. 3. 4.

Fiscal Department For Foreign Investments Federal Public Service Finance Rue Marie-Thérèse 1 - box 4 B-1000 BRUSSELS Tel.: +32 2 579 38 66 [email protected] www.fiscus.fgov.be

Regional Flanders Region Flanders Investment & Trade Gaucheretstraat 90 B-1030 BRUSSELS Tel.: +32 2 504 88 71 Fax: +32 2 504 88 70 [email protected] www.fitagency.be

Brussels-Capital Region Brussels Enterprise Agency Tour & Taxis Avenue du Port 86 c box 211 B-1000 BRUSSELS Tel.: +32 2 422 00 20 Fax: +32 2 422 00 43 [email protected] www.bea.irisnet.be

An excellent business infrastructure ���������������������������������������������������������6 Prominent location�����������������������������������������������������������������������������������10 Highly qualified workforce �����������������������������������������������������������������������11 Meeting your financial needs�������������������������������������������������������������������11

III. Incentives 1. Fiscal issues �������������������������������������������������������������������������������������������12 2. Financial aid���������������������������������������������������������������������������������������������16 3. Employment and training incentives �������������������������������������������������������16

Wallonia Region Ministry of the Wallonia Region Office for Foreign Investors in Wallonia Rue J Materne 115 B-5100 NAMUR Tel. + 32 81 33 28 50 Fax + 32 8133 28 69 [email protected] www.ofisa.be

Investing in Belgium

IV. Quality Of Life

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Legal disclaimer

Your European Facility in Belgium

The Investment Guide is designed to meet the need of a general overview on regulations, laws and procedures that may concern a foreign investor. The Service for Foreign Investments has made every effort to ensure the accuracy of this publication. However, no rights can be obtained from its texts.

Your European facility in Belgium

18

Preface I. Belgium in a nutshell

Ser vice s For Foreign In v est o rs Federal Service For Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

Federal Public Service Foreign Affairs Rue des Petits Carmes 15 B-1000 BRUSSELS Tel: +32 2 501 80 60 Fax: +32 2 501 37 65 [email protected] www.diplomatie.be

1. Facts and figures���������������������������������������������������������������������������������������2 2. Belgium, one country, three regions�����������������������������������������������������������3 3. Economy ���������������������������������������������������������������������������������������������������5

Service for Foreign Investments Federal Public Service Economy Vooruitgangstraat 50 B-1210 BRUSSELS Tel.: +32 2 277 78 08 Fax: +32 2 277 53 06 [email protected] www.investinbelgium.fgov.be

II. Strengths & Opportunities 1. 2. 3. 4.

Fiscal Department For Foreign Investments Federal Public Service Finance Rue Marie-Thérèse 1 - box 4 B-1000 BRUSSELS Tel.: +32 2 579 38 66 [email protected] www.fiscus.fgov.be

Regional Flanders Region Flanders Investment & Trade Gaucheretstraat 90 B-1030 BRUSSELS Tel.: +32 2 504 88 71 Fax: +32 2 504 88 70 [email protected] www.fitagency.be

Brussels-Capital Region Brussels Enterprise Agency Tour & Taxis Avenue du Port 86 c box 211 B-1000 BRUSSELS Tel.: +32 2 422 00 20 Fax: +32 2 422 00 43 [email protected] www.bea.irisnet.be

An excellent business infrastructure ���������������������������������������������������������6 Prominent location�����������������������������������������������������������������������������������10 Highly qualified workforce �����������������������������������������������������������������������11 Meeting your financial needs�������������������������������������������������������������������11

III. Incentives 1. Fiscal issues �������������������������������������������������������������������������������������������12 2. Financial aid���������������������������������������������������������������������������������������������16 3. Employment and training incentives �������������������������������������������������������16

Wallonia Region Ministry of the Wallonia Region Office for Foreign Investors in Wallonia Rue J Materne 115 B-5100 NAMUR Tel. + 32 81 33 28 50 Fax + 32 8133 28 69 [email protected] www.ofisa.be

Investing in Belgium

IV. Quality Of Life

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Legal disclaimer

Your European Facility in Belgium

The Investment Guide is designed to meet the need of a general overview on regulations, laws and procedures that may concern a foreign investor. The Service for Foreign Investments has made every effort to ensure the accuracy of this publication. However, no rights can be obtained from its texts.

Your European facility in Belgium

18