Belgium: Investing in Belgium
The Belgian economy has traditionally been characterised by high foreign direct investment (FDI). According to the World Investment Report 2024 published by UNCTAD, the country was the 16th FDI recipient in the world in 2023, with a total FDI inflow of USD 23 billion, doubling the level recorded one year earlier (USD 11.5 billion). At the end of the same period, the FDI stock stood at USD 577.9 billion. The main investing countries remain France, the U.S., Germany, the United Kingdom and Italy (by ultimate investing country - data OECD). Investments continue to be mainly oriented towards financial and insurance activities, manufacturing, professional, scientific and technical services, and administrative and support service activities. According to the latest data from the OECD, FDI inflows to Belgium were negative by USD 9.9 billion in the first semester of 2024, mostly due to movements in intra-company loans as resident affiliates extended loans to their foreign parents.
Belgium's investment attractiveness can be attributed to its strategic geographic position at the crossroads of the main European markets, the quality of transport, logistics and telecommunications infrastructure, its trade specialised in semi-processed and semi-finished goods, a multilingual and qualified labour force and high levels of purchasing power. The stability of society, the quality of the labour and the infrastructures have been attracting projects. There are currently no limits on foreign ownership or control in Belgium and there are no distinctions between Belgian and foreign companies. However, starting from July 1, 2023, the new Belgian foreign investment screening rules came into effect. Any deals signed from this date onward must undergo mandatory pre-closing notification to the Belgian Inter-federal Screening Commission (ISC). The regulations apply to transactions where a foreign investor gains 'control' over a Belgian strategic entity or acquires voting rights (10% or 25%, based on the sector) in such an entity. The notification thresholds vary based on the sector involved, including health, energy, transport, artificial intelligence, the aerospace industry, media, biotech, etc. In September 2024, Belgium's Federal Public Service published a report on foreign investment trends and policy in the first year of the Belgian FDI screening mechanism. During the relevant period, the ISC received 68 notifications, approving 53 investments unconditionally and leaving 15 pending. No corrective measures or blocked investments occurred. The average time from notification to the start of Phase I was six days, with 44.1% of cases starting within one day. The Phase I review lasted 31 days on average, with additional information requested in four cases. Phase II screening was initiated in five cases, four of which are still pending. US investors were the most active, accounting for 43.4% of investments, followed by the UK (29%) and Switzerland (5.3%). Most notifications involved complete acquisitions or control acquisitions, with 16.2% being internal restructurings. The top impacted sectors were data (15.1%), health (15.1%), digital infrastructure (11.6%), transport (10.5%), and electronic communication (8.1%). Overall, Belgium’s business climate is considered favourable, and the country ranks 16th among the 180 economies on the latest Corruption Perception Index and 46th out of 184 countries on the latest Index of Economic Freedom, as well as 24th in the Global Innovation Index 2024.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 6,805 | 11,587 | -1,710 |
FDI Stock (million USD) | 604,255 | 555,736 | 523,855 |
Number of Greenfield Investments* | 215 | 271 | 281 |
Value of Greenfield Investments (million USD) | 5,017 | 7,577 | 7,288 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Belgium | OECD | United States | Germany |
Index of Transaction Transparency* | 8.0 | 6.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 6.0 | 5.3 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 7.0 | 7.3 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Belgium's strengths in term of FDI attraction include:
Belgium's weak points include:
Investment incentives and subsidies are generally managed separately by the three Belgian regions of Brussels, Flanders, and Wallonia. In their investment policies, the regional governments emphasize innovation promotion, research and development, energy savings, environmental protection, exports, and most of all, employment. In general, all regional and national incentives are available to foreign and domestic investors with the same conditions.
Companies investing in Belgium may benefit from various tax reductions and exemptions:
For further information consult the website Business.Belgium.
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Latest Update: February 2025