Belgium could be a good test market for companies seeking to grow their export business. Indeed, foreign investments play a key part in the Belgian economy. At a rough estimate, foreign companies have a 70% share in the Belgian market.
The investment climate is extremely favourable in Belgium: the infrastructure is well developed; there are – for certain branches of industry – favourable tax incentives and labour costs are relatively low at an average of 19.93 euros an hour. It is advisable – in Belgium – to team up with a joint-venture or business partner rather than a mere commercial agent.
Tax bands
The Belgian standard VAT rate is 21%. Besides that, reduced rates also apply of 12% and 6%. A few products – including non-alcoholic soft drinks, certain medicinal products and some foodstuffs – are only taxed at 6%. The 12% rate applies, among other things, to certain sources of energy.
Principal sectors
Foreign companies usually invest in the following sectors: chemicals and petrochemicals, car assembly, biotechnology, ICT, transport and logistics. In addition to which there has been heavy investment in the services sector. To promote the siting of call- and distribution centres, favourable tax incentives are in operation throughout Belgium.
The main Belgian business institutions:
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