Belgium offers many advantages for your company, subsidiary or branch:
An open economy
- among the world’s top exporters
- no trade restrictions
- quick procedure for setting up a new business
- an entrepreneur-friendly environment
An ideal base to reach out to the European consumer market
- more than 500 million consumers within a radius of 800 km
- cultural diversity: an ideal test market for new products
- close to major production centres and sales markets
Easy to reach from Europe and the rest of the world thanks to
- excellent infrastructure and connections:
- excellent transportation options: seaports and inland ports, airports, railways, extensive road network
- promotion of intermodal transportation options
- first-class telecommunication networks
An international decision-making centre
- with countless European and international institutions
- more than 2 000 multinationals
- strong presence of lobby groups, diplomats and press
Excellent workforce
- high productivity level
- highly qualified workers
- extensive knowledge of languages
A knowledge centre
- top universities
- outstanding research and development centres
- a place for innovation
A business-friendly tax system
- Standard 25% corporate tax rate (20% for SMEs for the first 100 000 € net taxable income). The actual corporate tax rate may be lower as a result of the following reductions and exemptions:
- deduction for final, taxed income (dividends received are 100 % exempted, subject to conditions)
- interest can be deducted if you take out a loan to acquire the participation
- investment deduction for investments in new assets
- an exemption of 85% of net income for innovation income from patents, copyrighted software, plant breeders’ rights …
- the carry-over of tax losses to subsequent years unlimited in time
- a federal tax exemption for a number of subsidies granted by the Regions
- Individuals are subject to a progressive scale of Personal Income Tax on the net income of their business: a first tranche of progressively taxable income is taxed at 0 %, the next tranche at 25 %, and so on. As soon as the total income that is taxable at the progressive rates exceeds approximately 42 370 € (per annum), the top rate is 50 %. Personal income tax rates are subject to a municipal surcharge of typically 5 – 10 %, increasing the aggregate top rates to approximately 52.5 – 55 %.
- Special Incentives for Technology Investments.
- The Innovation Income Deduction is a beneficial regime to encourage investment in technology, which allows a deduction of 85 % of qualifying innovation income determined in accordance with the OECD’s nexus rules.
- On wages for qualifying scientific workers, 80 % of the statutory amount of Wage Withholding Tax does not need to be transferred to the tax collector, substantially reducing the “cost to company” for employing such workers.
- Other Special Incentives
- Belgium has an attractive tax regime for the financing of audio-visual and certain other creative works, allowing corporate investors in such projects to deduct their investments from their taxable income, up to certain thresholds.
- Belgium has an EU-proof tonnage tax regime in place for the shipping industry.
- For the diamond industry, Belgium applies a so-called carat tax that offers a relatively low – to some extent notional – tax base for diamond traders.
- Group finance (or treasury) centres enjoy a beneficial regime for computing the 5:1 thin capitalisation interest limitation (by netting interest owed or paid against interest earned or received).
- Belgium allows Net Operating Losses (NOLs) to be carried forward with no time limits (no carry back). However, certain tax deductions, including NOLs carried forward from previous tax years, go into a basket, and current-year profits over 1 million € can be reduced by no more than 40 % (limited to the amount of the basket), leading to a minimum taxable income of 60 % on income over 1 million €. These rules are applicable for the taxable period starting on 1 January 2023 and were introduced in anticipation of the implementation of the European Directive on ensuring a global minimum level of taxation for multinational groups.
- Other advantages:
- reverse charge of VAT on imported goods: you do not have to advance the VAT and you do not have to pay a deposit
- reduction in labour costs through reductions and exemptions from withholding tax
Link: Chambers & Partners Corporate Tax Guide 2023 – Belgium
Competitive property prices
- low property prices compared to neighbouring countries
Excellent living conditions
- a high standard of living
- exceptional education system
- good healthcare
- a cultural crossroads
Useful Links:
Belgian-Macedonian Business Club 