The British Chamber of Commerce works with a broad range of Accredited Service Providers to bring you the best professional advice for international businesses who are in or entering the Belgian market. This series aims to give you a bit of an insight into these companies; showcasing how they can help you develop your business. British Chamber members can book a free first consultation with any of our expert advisors.
This week, our team spoke to Karelle Lambert – Senior Area Director for Europe at AWEX; the Wallonia Export & Investment Agency.
What are the top-4 questions companies looking to do business in Belgium should be asking?
1. Why Belgium?
Belgium offers a market of 10 million consumers but our country should be considered as a launching platform for your export activities in Continental Europe. Indeed, within 4 hour truck drive, you may reach 60 million consumers with a high purchasing power.
Belgium is a perfect assessment market. Belgium is often used a test market by large companies, such as Coca Cola or H&M, to test new products. Considered as neutral, Belgium is the perfect location to reach European key markets.
2. What is the corporate tax level?
Nominative corporate tax level in Belgium is 33,99%. However, due to numerous tax incentive measures, the average effective corporate tax level is 26,3%.
3. What is the availability and cost of real estate and labour force?
Belgium benefits from a cost-effective office and industrial areas market. Belgium offers among the lowest prices in real estate in Europe. The same trend applies for industrial building as well as for equipped greenfield lands in economic parks. Availability of office, existing facilities and large greenfield plots is high in Belgium.
Prime education and the use of languages makes Belgium the perfect place to develop your international activities. Belgian universities and management schools, among the top worldwide ranking, offer high quality graduates on the market.
The Belgian Government has taken several measures in order to stimulate business environment:
The Tax Shift Law provides for a decrease of the employer social security contributions from 33% to 25%. Eurostat statistics already show that Belgium has a substantially lower rise of salary costs than the other countries.
As of the 1st of January 2016, the current reduction in social contributions related to first hirings were increased in two ways:
- full exemption from employers’ contributions for the first hiring, unlimited in duration;
- reduction in contributions for the six first hirings.
What is one emerging trend in the business/regulatory environment which you would advise companies in/entering Belgium to be particularly proactive about?
The business environment in Wallonia is enhanced through the new Marshall Plan 4.0 aiming at:
- Considering Human capital as an asset and strengthening links between training and education,
- Supporting the industry development, in a technological proactive perspective, including ever more and better SME’s,
- Considering our territory as an essential resource for our economic development,
- Supporting energy efficiency,
- Supporting the digital innovation, integrating this new dimension within social and industrial practices.
Wallonia decided to strengthen its industrial policy and economic development through a clustering approach. The Competitiveness clusters confirm the willingness to turn Wallonia into a competitive industrial area on a world-wide scale. The clusters cover areas such as Transport & Logistics, Aeronautics & Aerospace, Sustainable & Eco construction, Green technologies, Energy & Sustainable development, Health & Biotech, Agro-food industry, ICT, Mechanical Engineering, Plastics processing, Digital industry.
Why is it important for new entrants in Belgium to speak with you?
Wallonia Export & Investment is the governmental organization taking care of Foreign Investors and we assure you of our total commitment to help you in your enquiries and steps to set up or develop in Belgium – Wallonia. We may help you on different aspects including the search of real estate, information on the cash grants available in the Region, availability and costs of personnel, etc. In short, investment and R&D grants, attractive fiscal measures, employment incentives are all available. At any time, we may organize visits locally and have you meet key partners for your project. All our services are free of charge and treated confidentially.
If you’d like to organise a meeting with any of our Accredited Service Providers, or are interested in becoming one, get in touch with James Pearson – our Business & Trade Executive at firstname.lastname@example.org