Invest in Belgium
INVEST IN BELGIUM 1 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
INVEST IN BELGIUM 2 7 main advantages Springboard for a pan-European development
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 3 Belgium is the 3rd most globalised country in the world
KOF Index of Globalization 2015 100 91,3 91,24 91 90 82,96 82,76 82,65 80 74,81
70 65,87
60
50
40
30
20
10
0 Ireland Netherlands Belgium UK France Germany USA Japan
KOF Index 2015 measures 25 variables indicating degree of integration into world economy KOF stands for Konjunkturforschung (Business cycle research) INVEST IN BELGIUM 4 A perfect assessment market
• Gateway to European market
• Multi-cultural population
• European diversity challenge on a small scale
Exportation Importation 83,6% GDP 81,7% GDP
Source : The World Bank 2014
INVEST IN BELGIUM 5 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.
INVEST IN BELGIUM 6 Belgium connected to Europe
75 % of the EU market (GDP)
40 % of the consumers
INVEST IN BELGIUM 7 Belgium connected to Europe
European High Speed Trains
• 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
INVEST IN BELGIUM 8 Belgium connected to Europe
Air connections
• 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
INVEST IN BELGIUM 9 Developed road and railway networks Belgium has the densest road network in the world
Roads Railroads Density of network, km per square km Density of network, km per square km
Belgium 5,08 Belgium 0,117
Netherlands 5 Germany 0,094 Singapore 4,82
Hong Kong 4 Netherlands 0,073
Japan 3,3 UK 0,067 Hungary 2,1
France Slovenia 1,92 0,055
France 1,87 Japan 0,053 Denmark 1,73 USA 0,023 Switzerland 1,73
Source: IMD World Competitiveness Yearbook 2015
INVEST IN BELGIUM 10 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)
INVEST IN BELGIUM 11 Belgian airports Europe and the world in a flap of wings
Cargo Hub in the heart of Europe Offering
• Top 5 European cargo airports (ACI statistics) • More than 160 000 m² dedicated freight terminals • Ideal air-road transition • 120 000 m² more to come • Worldwide cargo flights network • 3 800 m² perishable centre • Selected and authorised handling agents • Excellent turnaround times • Electronic community system • Competitive fuel pricing
INVEST IN BELGIUM 12 Belgian airports Europe and the world in a flap of wings Number of passengers (millions) Brussels South Charleroi Airport (Cargo airport) Brussels South Charleroi Airport 10 6,5 6,79 6,44 • 200 ha Business park : “Aeropole” 5,2 5,9 • Focussing on regular charter flights 5 2,96 3,94 • Low cost flights & operations, high efficiency • Neighbouring Aero-Industries test base 0 2008 2009 2010 2011 2012 2013 2014 Liege Airport (Cargo airport) Cargo volumes evolution (thousands) • Centre of Amsterdam – Paris – Frankfurt triangle Liege Airport • 1st European Airport focussing on cargo 1000 • Operating 24/7 561 591 407 482 • European hub of TNT-Express Worldwide 500 327 • Low cost, extra fast & efficient operations 8 0 International Airport Ostend-Bruges 1996 2002 2006 2009 2013 2014
• 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
INVEST IN BELGIUM 13 Belgian Seaports
Port of Antwerp
• 2nd largest port in Europe • N°1 chemical port (BASF, Dow, Bayer, …)
Port of Ghent
• Versatile port for distribution to Belgium and Northern half of France • Largest recycling paper plant in the world
Port of Ostend
• Fast growing ro-ro port • Important role in the realisation of a European short sea container network
Port of Zeebruge
• High end deep sea port in Flanders • European hub port for automative industry (new cars)
INVEST IN BELGIUM 14 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 Namur
• Junction between East & West Inland Ports
Port of Charleroi
• Direct canals connections to Brussels and Antwerp
Port of Meerhout
• Container Terminal nearby Antwerp
Port of Genk
• TriModal Platform Water-Rail-Road
INVEST IN BELGIUM 15 Brussels, International government capital
European Institutions Highest Concentration of Diplomatic Missions
• European Commission • NATO headquarters • European Council • 1 500 International Professional Federations • European Parliament • Representation of most European Political Parties and Regions • Committee of the Regions • European Economic and Social Committee
INVEST IN BELGIUM 16 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
INVEST IN BELGIUM 17 Education & skills Higher education and training Language Skills
Netherlands 8,68 Country Rank
Netherlands 3 Belgium 8,26 Belgium 5 Germany 7,05 USA 6 Germany 17 USA 4,79
UK 18 UK 4,25 Japan 21 France 3,67 France 25
For information : Japan 2,86 For information : Russia 38 India 6,57 China 68 China 5,43 India 90 Russia 4,32 Brazil 93 Brazil 2,48
Sources : World Economic Forum Global Competitiveness Report 2015 – 2016 IMD World Competitiveness Yearbook 2015
INVEST IN BELGIUM 18 Best quality for education and schooling
Ranking Primary Educational Math Management (out of 140 countries surveyed) Education System and Sciences 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
Sources : The Global Competitiveness Report World Economic Forum 2015 – 2016
INVEST IN BELGIUM 19 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 INVEST IN BELGIUM 20 Labor market Global Productivity Index Salary Cost (US $- for a Director)
Countries with high productivity Total base salary plus bonuses and long- GDP/worked hour term incentives, US $
Belgium 66,92 USA 757439
USA 66,47 UK 641784
Netherlands 64,6 Germany 602354
France 64 France 577715
Germany 63,44 Belgium 515214 UK 49,66 Netherlands 486926 Japan 42,06
Sources : Conference Board 2014 Sources : IMD World Competitiveness Yearbook 2015
INVEST IN BELGIUM 21 EU innovation performance EU member states’ innovation performance 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0
Source: Innovation Union Scoreboard 2015 – European Commission, DG Enterprise and Industry
INVEST IN BELGIUM 22 Research & Development
Availability of latest Quality of scientific Ranking Capacity for innovation (out of 140 countries surveyed) technology 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
INVEST IN BELGIUM 23 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
INVEST IN BELGIUM 24 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 !
INVEST IN BELGIUM 25 Louvain-La-Neuve, Science Park Health , Environment, Engineering
INVEST IN BELGIUM 26 Liège, GIGA 3 facilities (Total: 4 000m²)+ LabHotel (300 m²)
INVEST IN BELGIUM 27 Gosselies , The complete innovation chain Research, tech platform, tech transfer, training, companies
INVEST IN BELGIUM 28 Leuven, smart hub
Gasthuisberg K.U.Leuven
One of the largest university hospitals Established in 1425 in Europe < 2,000 beds 30,000 students Campus Biomedical Sciences LRD Tech Transfer Office
Haasrode Science Park Arenberg Science Park
Large R&D intensive park DocPharma, ICOS, Hitachi, Focus on ICT and biotechnology Honeywell, Philips,… Option International, DSP Valley, … Arenberg Bio-incubator IMEC Innovation and Incubation Centre Leuven.Inc Largest nanotech R&D centre in Europe + Convergence Centre in NanoBio Houses Intel, Samsung, TI,… Bio-incubator I and II (devpt) ReMynd, OncoMethylome, Thrombogenics, Formac INVEST IN BELGIUM 29 Ghent, smart hub Inst. For Biomedical Tech Bio-incubator I & II
24 x 250 m² spaces Combining engineering with Houses Ablynx, ActoGeniX, biomedical expertise, drug Algo-Nomics, Biomaric, BIP, eluted stents,… Peakadilly Yakult Staff 80, campus Univ.
Hospital Science park
University of Ghent
VIB
Bio-focused companies, e.g. World centre for R&D in Bayer Biosciences, biotech World-class university Innogenetics, Devgen, Staff > 1,100 28,000 students Cropdesign,… Biotech and biomedical expertise
INVEST IN BELGIUM 30 Cost-effective office market Office (prime rent location)
Brussels 393
Warsaw 395
Dublin 485
Madrid 439
Amsterdam 506
Munich 540
Milan 556
Stockholm 593
Geneva 718
Paris 895
London West-End 2122
0 500 1000 1500 2000 2500 Total Occupancy Cost euro/m²/year
Source : Cushman & Wakefield, Office Space Across the World 2014
INVEST IN BELGIUM 31 Industrial areas
Brussels 47
Paris 52
Amsterdam 60
Madrid 60
Warsaw 66
Dublin 70
Frankfurt 83,4
Zurich 139
London (Heathrow) 193
0 50 100 150 200 250
Prime industrial rents €/m²/year
Source : Cushman & Wakefield, Marketbeat Industrial Snapshots Q1 2015
INVEST IN BELGIUM 32 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
INVEST IN BELGIUM 33 Effective (Average) Corporate Tax Rate (ECTR) Especially in Belgium, the ECTR is considerably below statutory tax rates (-7,3%)
ECTR (Effective Corporate Tax Rate) 45 39,4 40 36,5 37,7 35 28,2 30 26,7 24 25 22,6 22,4 20 15 10 5 0 Belgium Netherlands Germany France Italy UK USA Japan NCTR (Nominal Corporate Tax Rate) 45 38,9 37,9 40 35,7 34 35 31 30,9 30 25 25 21 20 15 10 5 0 Belgium Netherlands Germany France Italy UK USA Japan Sources : ZEW, Centre for European Economic Research, Manheim Effect Tax Levels – Final Report 2014 INVEST IN BELGIUM 34 Cost-effective tax regime
Fiscal Ruling
The investor describes the facts to the tax administration, Principle 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.
INVEST IN BELGIUM 35 Cost-effective tax regime
Foreign executive status
• Exclusion of days performed outside Belgium For the EMPLOYEE • Tax free allowances (relating to extra costs resulting from the Belgian employment)
For the • Reduction of employment cost for expats EMPLOYER
INVEST IN BELGIUM 36 Cost-effective tax regime
Foreign executive status
Annual gross salary: EUR 75,000 Taxable: Tax free allowances: Annual gross: 75,000 Cost of living: 2,500 Social security: -9,800 Housing differential: 2,674 Tax free allow: -9,662 Tax equalisation: 4,488 Balance 55,538 9,662
40% travel: -22,215 Gross taxable: 33,323
Tax due: EUR 9,997 or approx. 13% of gross salary
INVEST IN BELGIUM 37 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
20 19 18 16 15 14 13 12 10 8 6 6 6 6 5 4 4 4 2 0 Belgium Netherlands France Denmark USA UK Spain Germany Luxembourg
Source: IMD World Competitiveness Yearbook 2015
INVEST IN BELGIUM 38 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
INVEST IN BELGIUM 39 Making business in Belgium Which legal form to choose for your company ?
Subsidiary Joint Stock Main Differences Branch or Rep. Office LTD 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
INVEST IN BELGIUM 40 Incentives
Belgium Belgium 1. Investment Incentives 2. Research & Development Support
Calculated, as a percentage, on the purchase of : • Subsidy for Basic Industrial Research : 50% (up to 70% for SME’s) • Building • Advanced Loan for Applied Research : 50% (up to 70% for • New equipment SME’s) • Intangible investments (patents, licenses, technical • Tax Incentives for R&D expertise whether patented or not)
Calculation of the grant is based on various criteria : 3. Employment Incentives • Sector of activity • Size : Large company or SME • Recruitment • Employment creation • Geographical area (in or out the investments zones) • Training
INVEST IN BELGIUM 41 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
INVEST IN BELGIUM 42 Brussels High quality of life at a reasonable cost
Based on the indicators of OECD Better Life Index In the cost of living index of more than 100 cities 2015, Brussels ranks 13th of 36 OECD members worldwide, Brussels is far more affordable than many Rank Country major cities 140 129,3 1 Australia 118 2 Norway 120 101,2 101 100 3 Sweden 100 93 93 7 United States 80 9 Netherlands
12 United Kingdom 60 13 Belgium 40 14 Germany 15 Austria 20
16 Ireland 0 17 Luxembourg 18 France 20 Japan Cost of living NY = 100 36 Turkey
Source : fDi Intelligence from the Financial Times Ltd, 2014 Source : OECD Better Life Index, 2015 INVEST IN BELGIUM 43 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. 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
Source: Mercer Human Resource Consulting, 2015.
INVEST IN BELGIUM 44 Brussels High quality of life at a reasonable cost
Average rent in urban location (apartment 120m2)
7000 6578
6000
5000
3938
4000 Month
3000 2675 Euro/ 1750 2000 1580 1338 1345
1000
0 Brussels Madrid Milan Frankfurt Amsterdam Paris London
Source: The Global Property Guide, Rental Yields, 2014
INVEST IN BELGIUM 45 Our services
We can bring support in the following areas:
• Tax and legal information • Guidance to public bodies
• Company registration • Recruitment & employment legislation
• Build up local high level network • Sectoral expertise & market intelligence
• Prospection of an office or a site • Technological transnational partnerships
• Funding & public financial support
INVEST IN BELGIUM 46 For further information
Flanders Investment & Trade Brussels Invest & Export Boulevard du Roi Albert II 37 - 1030 Brussels c/o Ministry of Brussels-Capital Region www.investinflanders.com - [email protected] Avenue Louise 500 - 1050 Brussels T : +32 2 504 87 11 - F : +32 2 504 88 99 www.investinbrussels.com – [email protected] T : +32 2 800 40 00 - F : + 32 2 800 40 01
Wallonia Export & Investment Agency The Liaison Cel Office For Foreign Investors Federal Public Service Economy Avenue des Dessus de Lives 6 - 5101 Namur-Loyers Contact person: Mrs Colette Vanstraelen www.investinwallonia.be - [email protected] [email protected] T : +32 81 33 28 50 - F : +32 81 33 28 69 T : +32 2 277 72 82
INVEST IN BELGIUM 47