Belgium

Investing

FDI in figures

In its annual World Investment Report, the United Nations Conference on Trade and Development (Unctad) puts Belgium ahead of emerging economies like China, India and Russia, as well as established regions like Canada and Hong Kong.
In terms of investment outflows, Belgium is in seventh position, behind the US, France, Spain, Switzerland, Britain and Germany. But again, Belgium's figure surged, doubling to USD62 billion (EUR44 billion), from USD31 billion (EUR22 billion) in 2005.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	43,558	33,918	71,997
FDI inward stock (millions USD)	n.c.	n.c.	603,432.0
Performance Index*, world ranking	10	11	10
Potential Index**, world ranking	15	16	n.c.
Number of Greenfield investments	109	159	110
FDI inwards (in % of GFCF)	64.7	46.2	89.4
FDI stock (in % of GDP)	n.c.	n.c.	153.2

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Belgium

Strong points: The five reasons to invest in Belgium, provided by the government :

- A highly educated, productive, multilingual and flexible workforce,
- Top rate business infrastructure,
- Strategic location in Europe,
- Tradition of openness and international trade,
- Quality of life.
Weak points: High cost of salaries.
Government measures to motivate or restrict FDI: The Belgian government recently introduced the Notional Interest.
This is a new and innovative measure in international tax law by which all companies subject to Belgian corporate tax will be able to deduct from their taxable income an amount equal to the interest they would have paid on their capital in the case of long-term debt financing. In addition, the 0.5% registration duty on capital contributions has been abolished. For more information on the Notional Interest and investing in Belgium please go to www.invest.belgium.be
Bilateral investment conventions signed by Belgium

Administrative procedures relative to foreign investment

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

In 2006 104 different banks were represented in Belgium; 54 Belgian or foreign-owned institutions are incorporated under Belgian law, and 50 institutions are incorporated under foreign law.
Acquisition of holdings: Legal.
Obligation to declare: Direct foreign investments are not submitted to a preliminary authorization, but in some activity sectors, the investor has to ask for an authorization from the government: banks, insurances, food products production or sale, retail trade.
Competent organization for the declaration