Belgium
BELGIUM AT A GLANCE | DOING BUSINESS IN BELGIUM | DOUBLE TAXATION AGREEMENT BETWEEN HONG KONG AND BELGIUM | USEFUL ADDRESSES IN BELGIUM | BELGIUM IN HONG KONG
The Kingdom of Belgium, facing the North Sea, is located at the centre of Western Europe. Covering an area of 30,528 square kilometers, Belgium has a population of just over 10 million inhabitants. With 314 people per km², Belgium has a relatively high population density.
The four state reforms in the past three decades transformed Belgium into a federal state comprising distinct regional and cultural identities. The country has a complex yet special structure divided into three Regions: the Flemish Region, the Brussels-Capital Region and the Walloon Region. There are two main language communities in Belgium, namely the Dutch-speaking Flemings in the north and the French-speaking Walloons in the south. In the far eastern part of the country, there is a minor German-speaking community.
Belgium is a founding Member State of the European Union (EU) which comprises a population of nearly half a billion. Despite its small area, the country has generated in 2007 a GDP of $376 billion and exports amounted to $322.1 billion F.O.B. with main export commodities being machinery and equipment, chemicals, diamonds, metals and metal products, and food.
With a reasonably gentle climate, Belgium becomes a paradise for tourists seeking for historical and cultural heredity. Thirteen Belgian sites are part of the UNESCO World Heritage List. Cities like Brussels, Antwerp, Bruges, Ghent and Liège are renowned for their great historical architecture. Belgium is also regarded as a shelter for museums, with more than eighty to choose from in Brussels alone. The country is easily accessible by an intensive railway network and inland waterways thanks to the shared delta of the Scheldt, Meuse and Rhine rivers.
Belgians are known for their way of enjoying life, great nature, a wide variety of sport and recreational activities, like the adventurous hot air ballooning, spa treatment and horse-riding. Belgium has an abundance of restaurants featuring a wide range of delicacies, with each representing a different taste and experience. It is especially famous for its incredible variety of beers and delicious chocolates.
Geographical Location
Belgium is recognized as the natural gateway to Europe, the very heart of Europe’s richest market. It is just within 300 km from London, Paris, Amsterdam or Frankfurt. Add another hour and you will be in Lisbon, Madrid, Stockholm, Rome, Athens, Warsaw, Berlin, Dublin and other European business centres. It is estimated that Belgium is also in the centre of a market of 454 million affluent customers, thanks to the basket of Members of the European Union.
Belgium is recognized as the natural gateway to Europe, the very heart of Europe’s richest market. It is just within 300 km from London, Paris, Amsterdam or Frankfurt. Add another hour and you will be in Lisbon, Madrid, Stockholm, Rome, Athens, Warsaw, Berlin, Dublin and other European business centres. It is estimated that Belgium is also in the centre of a market of 454 million affluent customers, thanks to the basket of Members of the European Union.
• Concentration of International Institutions
Thousands of public and private international organizations have set up headquarters or have a permanent secretariat in Belgium.
Beside the European Union Commission, Brussels is laso home to the headquarters of the North Atlantic Treaty Organization (NATO) and the General Secretariat of the Benelux, to name a few, putting Belgium at the forefront of political and economic activities.
Euronext, the first pan-European stock exchange, was established in 2000 by the merger of the Amsterdam, Brussels and Paris stock exchanges, facilitating companies to attract foreign equity. Euronext also became owner of LIFFE, the London futures and options exchange.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the world’s first and largest clearance and settlement system for internationally traded securities (Euroclear) all have their headquarters in Belgium.
• Infrastructure
The highly efficient transport network in the country allows it to fully take advantage of its geographical location.
The Belgian motorway system is modern and well developed, totaling 150,567 kilometers. The seven international expressways connecting the country to the French, German and Dutch motorways are lit all night long and are toll-free. The proximity of the Eurotunnel also adds value to the country’s motorway network.
Belgium was the first European country to make use of the train and it has wisely developed the densest railway system in the world. It is now the key link between continental Europe and the UK. The HST (High-Speed Train) network links Brussels to London, Amsterdam, Frankfurt and Paris, in the fastest and most convenient manner, stimulating the rise of business travels among these cities.
Despite its short coastline of 67km, Belgium offers world-class water transport facilities with the port of Antwerp (second largest seaport in Europe), the deep-sea container port of Zeebrugge, the port of Ghent and the inland ports of Liège and Brussels, Liège being the second European inland port.
Rivers and canals expand across the country, establishing a highly developed inland waterway system and connecting it to the main rivers and canals of the border countries. Moreover, the ports are fully integrated with the road and rail networks. Thus, Belgium successfully makes full use of the advantages offered by combined transport.
The Brussels National Airport (officially named “Brussels Airport, Welcome to Europe”) offers a range of intra-European and international flights. Other major European business centres are generally within 2 flying hours reach. Tens of million of passengers transit through Brussles Airport annually and the figures are on the rise. Brussels National Airport has its own air-cargo handling and distribution centre in the EU with a turnover of 700,000 tons in 2005.
In addition, the activities on the regional airports of Charleroi, Liège, Antwerp and Ostend are equally expanding, with growth both in freight and passenger traffic.
Moreover, all Belgian airports receive excellent scores for punctuality, safety standards and quality of service.
Belgium is by far well developed with state-of-the-art telecommunication systems.
Following the privatization and liberalization of the telecom market over the past decade, more players have entered the competitive market. All the latest It and ICT technologies are available in Belgium, enhancing not only workforce mobility, distribution and logistic, but also e-learning capabilities, e-government, e-health and e-security programmes.
Following the privatization and liberalization of the telecom market over the past decade, more players have entered the competitive market. All the latest It and ICT technologies are available in Belgium, enhancing not only workforce mobility, distribution and logistic, but also e-learning capabilities, e-government, e-health and e-security programmes.
• Competitive Workforce
Belgium’s workforce is multilingual, skilled, motivated and very productive, thanks to the reputable Belgian educational system. The local universities and other higher education institutes have links to the business sector to ensure that both training and research meet the needs of the global marketplace. This cooperation has led to the creation of numerous successful spin-offs. Labour ethics, working drive and staff loyalty is high. Absenteeism rates low among the worldwide labour market.
• Government Financial Aids
Running a business in Belgium is truly financially stimulated, with expansive support systems readily available. Belgium has built its wealth on its openness to the world, in trade as well as investments. The country has long been welcoming and fostering foreign direct investment (FDI). The general principle of the economy is “global equity”: no discrimination is made between domestic and foreign companies.
When starting a business a (potential) taxpayer can obtain an Advanced tax ruling by the Tax Authorities about the application of fiscal law in his specific situation. It makes fiscal planning smoother, more rapid and more efficient.
Expatriates defined as foreign executives, specialists and researchers residing temporarily in Belgium are eligible for a special tax regime that treats them as non-residents. Qualifying individuals are taxed only on salary or director’s fees relating to professional activities performed in Belgium. For the days spent on business trips outside Belgium, the “travel exclusion” benefits apply. This favourable measure lowers the taxable personal income and also minimizes the salary cost of the foreign employee in Belgium so long as the employer files a request to the tax authorities. There are also a number of fiscal exemptions.
Individuals residing in Belgium are taxed on worldwide income such as real estate income, salaries and wages and self-employment income and other income of all kinds. Normal professional expenses, special deductible expenses and personal deductions and allowances may be deducted. The individual income tax varies according to the net taxable income from 0% to 50%.
All types of commercial companies resident in Belgium are subject to corporate income tax. This tax is levied on worldwide income (but Belgium’s tax treaties substantially mitigate worldwide taxation). Belgian resident companies as well as Belgian branches of foreign companies are therefore taxed on their foreign source income to the extent that it is linked to their activity.
Foreign companies are taxed at a 33.99% nominal ordinary tax rate. For Small and Medium sized Enterprises (SMEs) with a taxable profit not exceeding 322,500 €, the tax rate shall drop to 24.98% at the lower end of the tax scale.
• An Advanced Banking System
With the mature development of ATM, POS and e-banking, customers of Belgium’s banks use highly automated systems for inter-bank transfers. All credit institutions operate under the same legal framework and are monitored by the same supervisory authorities. The Banking, Finance and Insurance Commission (BCFA) supervises the activities of financial institutions, including banks, investment funds, stock brokers, finance companies and holding companies. BCFA coordinates closely with the National Bank of Belgium, which is Belgium’s central bank.
The Belgian financial sector is also a leading force in the creation of an important cross border bank-insurance group. Some of these groups are developing a significant presence and activity in Eastern Europe.
On 10 December 2003, the Hong Kong S.A.R. and the Kingdom of Belgium have signed the a tax treaty referred to as the Double Taxation Agreement (DTA) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital. It came into effect in Belgium on 1 January 2004and in Hong Kong on 1 April 2004.
This DTA, the first signed by Hong Kong with any country, has translated into tax savings for Belgian and Hong Kong investors doing business in each other’s areas through tax rights between the two entities and tax relief in case of double taxation. Furthermore, Hong Kong investors can leverage the tax advantages to use Belgium as a springboard to enter the European Union market.
Since 1 January 2006, the Belgian government has introduced an additional tax incentive for foreign investors with the concept of “Notional Interest Deduction”, which allows for a tax deduction for the cost of capital. This advantage applies to both Belgian and foreign companies with a taxable presence in Belgium. At the same time, the 0.5% registration duty on capital contributions (so-called “capital tax”) have been abolished, drastically reducing the cost of equity investing in Belgium.
USEFUL ADDRESSES IN BELGIUM
Federal
.be Federal portal
Official website of the Federal Government of Belgium
www.belgium.be
Federal Public Service Economy,
SMEs, Self-employed and Energy
Vooruitgangstraat / Rue du Progrès 50
B-1210 Brussels
Tel : +32 (0)2 277 51 11
Fax: +32 (0)2 277 51 07
Email : info.eco@economie.fgov.be
Website: www.mineco.fgov.be
Federal Public Service Economy
Rue de Louvain 40
1000 Brussels
Contact: Van Damme A., Counselor
Tel: +32 (2) 552 22 11
Fax: +32 (2) 511 01 84
Email: invest.belgium@economie.fgov.be
Website: www.investinbelgium.fgov.be
Foreign Affairs, Foreign Trade and Development Cooperation
Rue des Petits Carmes 15
Karmelietenstraat 15
B-1000 Brussels
Tel: +32 02 501 81 11
Fax: +32 02 501 80 58
Email:
Website: www.diplomatie.be
Federal Public Service Finance
North Galaxy
Boulevard du Roi Albert II 33
B-1030 Brussels
Tel: +32 (0)2 572 57 57
Or: +32 (0)2 025 76 21/11
Email:
Website: www.fiscus.fgov.be
Regional
Flanders Region
Flanders Investment & Trade
Gaucheretstraat 90
B-1030 BRUSSELS
Tel.: +32 (0)2 504 88 71
Fax: +32 (0)2 504 88 70
Email: invest@fitagency.be
Website: www.fitagency.be
Brussels-Capital Region
Brussels Enterprise Agency
Tour & Taxis
Avenue du Port 86C, bte 211
B-1000 BRUSSELS
Tel.: +32 02 422 00 20
Fax: +32 02 422 00 43
Email: Info@bea.irisnet.be
Website: www.investinbrussels.com
Wallonia Region
Ministry of the Wallonia Region
Office for Foreign Investors in Wallonia
Place de la Wallonie 1
5100 JAMBES
Tel : +32 (0) 81 33 31 11
Fax : +32 (0) 81 33 37 77
Email: dircom@mrw.wallonie.be
Others
The Banking, Finance and Insurance Commission (BCFA)
Rue du Congrès 12-14
1000 BRUSSELS
Tel: +32 02 220 52 11
Fax: +32 02 220 52 75
seg@cbfa.be
www.cbfa.be
Federation of Chambers of Commerce of Belgium
Avenue Louise 500
B-1050 Brussels
Phone: +32 (0)2 209 05 50
Fax: +32 (0)2 209 05 68
E-mail: fedcci@cci.be
Website: www.cci.be
Federation of Enterprises in Belgium (FEB)
Rue Ravenstein 4
B-1000 Brussels
Tel: +32 (0)2 515 08 11
Fax: +32 (0)2 515 09 15
E-mail: info@vbo-feb.be
Website: www.vbo-feb.be
THE CONSULATE GENERAL OF BELGIUM IN HONG KONG
Address: 9/F, St. John's Building
33 Garden Road
Central
Tel.: +852 2524 3111
Fax: +852 2868 5997
E-mail: hongkong@diplobel.org
Website : http://www.diplomatie.be/hongkong
Consular staff:
- Consul General: Mr. Michel MALHERBE
- Consul: Mrs. Françoise PLETINCKX
- Senior Consular Assistant: Ms. Olivia WONG
Office Hours: The Consulate is open to the Public from Monday to Friday, 9-12 a.m. (the Visa Section is open in the morning only) and, on appointment, between 2-4.30 p.m. except on public holidays.
| Belgian Public Holidays | Date |
| New Year's Day | January 1 |
| Easter | varying |
| Easter Monday | 1st Monday after Easter |
| Labor Day | May 1 |
| Ascension | 6th Thursday after Easter |
| Pentecost | 7th Sunday after Easter |
| Pentecost Monday | 8th Monday after Easter |
| Day of the Flemish Community* | July 11 |
| National Day | July 21 |
| Assumption of Mary | August 15 |
| Day of the French Community* | September 27 |
| All Saints | November 1 |
| Armistice Day | November 11 |
| Day of the German speaking Community* | November 15 |
| Christmas | December 25 |
*observed in the Region concerned only
Consular services provided by the Consulate General:
The Consular Section of the Consulate can be compared to a small Belgian town hall abroad.
The main services that can be provided are of an administrative/legal nature:
- issuing of passports to Belgian citizens
- issuing of ID cards for Belgians living in Hong Kong
- issuing of documents required by Belgian administrations (for example: proof of residence abroad)
- issuing of documents required by the local administration (for example to obtain a Hong Kong identity card)
- Updating the Belgian National Registry in case of birth of a child in Hong Kong, in case of change of civil status, change of address etc.
- translation of Belgian driving licenses
- in certain cases, legalization of signature
- in certain cases draw up notary acts to be used in Belgium. In all cases such notary acts will be prepared based on a project from a Belgian notary
- processing requests of Belgian nationality (naturalizations, application of Belgian nationality by foreign spouses of Belgian citizens, retention of Belgian nationality etc.)
- organization of elections for Belgians residing in Hong Kong
- issuance of visas to foreigners intending to visit Belgium and who are submitted to the visa obligation
For detailed information about how to apply, what are the required documents etc. you are kindly advised to browse the website of the Consulate on http://www.diplomatie.be/hongkong, click on “services” and on “General Schengen visa info”.
Last but not least, a brochure setting out the procedures to follow, the required documents and the addresses of the competent departments in Hong Kong such as obtaining a work permit, an ID card, a Hong Kong driving license, registration of weddings and births is also available at the Consulate General.
THE BELGIAN CLUB
The Belgian Club organises social, cultural and sport activities for the Belgian community as well as for friends and relatives. The membership is open to Belgian and nationals of any country who are keen to join the Belgian community and to participate in Belgium related activities.
For more information please visit http://www.belgianclub.com.hk/
Our Sponsors
The BLCC Business Centre
Double Taxation Agreement between Hong Kong and Belgium
Our Logo
Double Taxation Agreement between Hong Kong - Luxembourg
