Flanders Foreign Investment Office

US companieS
croSS the atLantic to
FLanderS,
the gateway to eUrope

US companieS,
we invite yoU to do BUSineSS in FLanderS
if you are looking for a strategic location for a new
business project, in whatever shape or form,
Flanders offers you a unique blend of advantages.
Flanders is the northern region of Belgium, with
Brussels as its capital. it is the gateway to europe.
thousands of foreign companies are already deriving
great benefit from the assets that Flanders boasts.
Setting up or expanding a business in the region can
be summarized into two words: smooth and easy.
SaLeS
opportUnitieS in
the heart oF eUrope
Located deep in the Blue Banana –
the economic power plant of Europe
stretching from North West England
to Milan in Italy – Flanders is close
to large industrial and consumer
areas, such as the region around
Paris, the Ruhr area, London, and
the Amsterdam-Randstad Area.
Moreover, over 60% of Europe’s
purchasing power is situated within
a tight 300 miles radius around
Flanders. Highly efficient logistics
operations ensure that the main
markets in Europe can be served
within 24 hours. What’s more, from
Brussels – the capital of Flanders –
other large EU capitals are merely a
short flight or high-speed train ride
away.
Renowned US companies like Nike,
3M, Manpower and Procter & Gamble
have already seized the numerous
advantages of Flanders. There are
more than 900 US companies and
1,800 subsidiaries active in Belgium,
employing roughly half a million
people. US direct investments in
Belgium amounted to USD 9 billion in
2010.
notionaL intereSt dedUction:
a Strong and UniqUe incentive
EFFECTIVE EU CORPORATE TAX RATES
The logistics knowledge
accumulated in Flanders plays a
crucial role in Nike’s worldwide
success.”
Luc Hooybergs, General Manager, Nike ELC
Laakdal (Flanders)
We are located in the heart
of Europe’s buying power, with
excellent connections to all our
customers in the EMEA region.
Flanders is the best location in
Europe.”
Luc Hooybergs, General Manager, Nike ELC
Laakdal (Flanders)
Belgium – and Flanders as
a region – is a world champion for
chemicals and plastics. On a sales
per capita basis, Belgium even is
the number one chemical country
in the world.”
Koen Wilms, 3M Managing Director Benelux
Region
Flanders (Belgium) is the
ideal test market for innovations.
If it works there, we’re pretty sure
that it’ll also work elsewhere.”
Hessel De Jong, General Manager Benelux
Operation at the Coca-Cola Company
Flanders offers a wide range of tax benefits and financial grants: • low effective
tax rate • widely available tax ruling • notional interest deduction • dividend
withholding tax exemptions • holding regime • reduced wage costs • R&D tax
breaks • double taxation treaties.
One of these, the notional interest deduction, deserves special attention. It is
a unique deduction, granted to companies who use their own risk capital to
(partially) finance their activities. As a result, the average effectively paid tax rate
is 14.25% 1 in Belgium. For many multinationals, such as ExxonMobil, Hewlett-
Packard, Coca-Cola, Kraft Foods and Pfizer, this advantageous incentive has
had a major impact on their investment decisions in the region. According to the
World Bank, those large companies – often subsidiaries of foreign corporations –
pay a substantially reduced effective tax rate, averaging 5.2% 2 – one of the lowest
rates in and outside of Europe.
Optimization of all these tax incentives leads to one of the lowest effective corporate
tax rates in the EU according to the Institute of International and European Affairs
(see chart).
Last but not least, the ruling commission provides foreign taxpayers with an
individually-tailored approach to guide them on the fiscal aspects of their investment
project in Flanders. Import and export duties, for instance, can also be
included in an individual tax ruling.
did yoU Know?
• around 3,800 diplomats are active in
Brussels. the only place in the world
where you will find more is new york
city. measured by number of events
per year, it is the world’s second
international conference center.
the city also has the most foreign
journalists after washington dc.
• Flanders’ many logistics assets
have been praised by companies
and experts alike. in the world
Bank’s Logistics performance
index 2011, for instance, Flanders
ranks 7th worldwide. ‘transport
infrastructure’ and ‘distance to
market’ get the highest scores.
• Belgium was the leading foreign
investor in the US in 2011 with
USd 43.8 billion or 20% of the total
Fdi in the US, proving Belgium’s
world status as financial center
(cf. the notional interest deduction
incentive), according to the world
investment report 2011 by Unctad.
• according to the US census
Bureau, bilateral trade between the
US and Belgium was worth USd 41
billion in 2010, with a large US trade
surplus.
• according to the 2012 KoF
index of globalization, Belgium –
and Flanders as a region – has the
most open economy in the world,
outclassing ireland, the netherlands,
austria and Singapore in the top 5.
1 National Bank of Belgium, data of year 2010 (SMEs and large enterprises)
2 3
25
20
15
10
5
0
23,2
UK
22.9
20.9
11,9
8,2
2 World Bank, Doing Business, 2012.
4,8
4,1
DE NL IE FR BE LUX

eLoqUent, FLexiBLe
and prodUctive
Flanders boasts a readily available, highly skilled and motivated pool of talent.
What’s more, most people in the region are also very proficient in the English
language. Owing to Flanders’ position right on a nodal point where Europe’s
three major cultural and language groups meet, people also speak fluently
Dutch, French and German. In 2010, according to World Bank data, Belgium
scored better than the UK, France, Germany and the Netherlands in terms of
flexibility. As a result, people in Flanders are among the most productive in the
world. With a GDP of USD 58.5 per worked hour in 2010, Belgium – and Flanders
as a region – is only outmatched by the United States (USD 59.3) and Norway
(USD 74.4).
Artevelde tower,
Ghent
BrUSSeLS,
where
deciSionS are
made
FaSt and aFFordaBLe
oFFice Space
Compared to other regions and countries around the world and in Europe, Flanders
offers businesses affordable rent prices for office space. For example, and based on
Cushman & Wakefield’s ‘2012 Office Space around the World’ survey, it is clear that
Brussels – the capital of Flanders (Belgium) – offers a reasonable occupancy rate:
EUR 435 per square meter per year. In cities like London (EUR 1,978), Paris (EUR 875),
Luxemburg City (EUR 621), Amsterdam (EUR 506) and Zurich (EUR 809), the cost is
significantly higher. What’s more, setting up a company in Flanders takes no longer
than 3 days. This is way faster than Denmark (6 days), France (7), the Netherlands
(10), the UK (14) or Germany (16).
Brussels, the capital of Flanders (Belgium), can easily
be considered europe’s lobbying capital. the city is
home to the nato headquarters and more than 1,400
governmental and non-governmental international
organizations. Brussels is, after washington dc,
the world’s largest center for advocacy. the capital
houses:
• over 10,000 lobbyists
• 700 professional associations
• 400 organized interest groups
• 150 consultancy firms
• 150 law firms specializing in european law
• 30 chambers of commerce
• over 1,000 accredited journalists
• a permanent representation of over 220 regions
and federal entities
• 1,300 european headquarters or sales offices of
foreign companies
a hotBed For innovation
the hUB oF eUrope
Flanders has an impressive track record when it comes to discovery
research and innovation across a wide range of disciplines and a variety of
sectors. The region houses 4 Strategic Research Centers, including IMEC
(Europe’s leading research center on nanotechnology), world-class center
for life sciences expertise VIB, product innovation consulting and research
center VITO and Flanders’ research institute for ICT and broadband iMinds.
All 4 collaborate with both the academic and business worlds. They are
breeding grounds for cutting-edge technologies and for the processes that
shape tomorrow’s society.
Taking into account tax advantages and incentives such as a 6.8% patent
income tax and a 75% tax exemption for the employer funded up to 60%,
it comes as no surprise that R&D is one of the top foreign investment
activities in the region. In fact, the suburb of the Belgian capital Brussels
houses the second largest R&D center of The Coca-Cola Company worldwide,
right after the R&D center in the Atlanta headquarters. Every year,
500 new drinks are developed in Belgium. Following pre-trials, successful
products are destined for Europe, Africa, Eurasia and the Middle East.
In spite of a surface area of a mere 13,522 km² (5220mi²), Flanders is home to over 700 European Distribution Centers
(EDCs). With an average of 5 EDCs per 100 km² (38.6mi²), the region boasts the highest EDC density in Europe. It is a
paradise for any logistics operation. Flanders is among the world’s best when it comes to the density of road, railroad
and inland waterway networks. In short, Flanders is the region of choice to efficiently address the European market.
Many US-based and other foreign multinationals already know the advantages of serving Europe from Flanders:
Black&Decker, Bose, Decathlon, Duracell, Emrald Resilient Tyre, Honda, Mazda, Nike, Pfizer, Procter & Gamble,
Ranbaxy, Samsonite, Sara Lee, SKF, Toyota, Volvo, etc.
MULTIMODAL TRANSPORT INFRASTRUCTURE
4 5

did yoU Know?
• Flanders isn’t only a great place to do business; it
is also the place to be for quality beers, chocolate,
waffles and French fries. or is it Flemish fries?
this tragic misunderstanding originates from the
First world war. american soldiers in Belgium
who tasted the delicious snack called them
French fries, referring to the official language of
the Belgian army at the time. in the south of the
netherlands, bordering Belgium, they have always
been called Flemish fries.
SmaLL region, pLenty
oF (Low-coSt) Space
Flanders may be relatively small, yet it holds plenty of spare capacity for logistic
units in Flanders. The seaports of Antwerp (the leading port in the world for
freight transport to and from the US), Zeebrugge, Ghent and Ostend have no
congestion. On average in the region, half a million m² (0.193mi²) are rented out
yearly.
According to the “Belgium Property Insight” report by CB Richard Ellis – a global
leader in real estate services – prime logistics space in Flanders traded at less
than EUR 50/m² (10.76ft²) in 2012. The prime rent in Belgium, of which Flanders
is the northern region, is one of the lowest in Western Europe, thanks to its low
property and building costs. When it comes to warehouse renting prices, Antwerp
and Brussels come out cheapest as well according to a 2010 survey by Cushman
& Wakefield. With EUR 43 and EUR 47 per m² respectively, both cities score well
below other European heavyweights like Paris (EUR 100), London (EUR 113) and
Hamburg (EUR 72).
an open-minded cULtUre
Flanders is situated on the crossroads of three major cultures: German, Roman and Anglo-Saxon. This makes the region’s
inhabitants very open and receptive to all sorts of influences from abroad, whether cultural, culinary, social or professional.
In addition, international business cities, such as Antwerp or Brussels, have a thriving culture of expat communities from all
4 corners of the world.
As an American, you’ll feel at home in no-time, as the US community is well-represented in Flanders. In addition to the
American Chamber of Commerce (www.amcham.be) and the Commercial Service department of the US Embassy, there
are numerous international schools, including the Brussels American School, the World International School, the Antwerp
International School and the Da Vinci International School. Several expatriate organizations also provide online support.
You can find them on www.expatica.com and www.expat-blog.com.
• Look out for many of your favorite clothing brands
in Flanders as well, like Jimmy choo, Forever
21, abercrombie & Fitch, hollister and Urban
outfitters.
• in 2010, Belgium was the fourth most attractive
country in the world for foreign investors, with
an inflow of USd 61.7 billion, says the 2011 world
investment report by Unctad. only the US, china
and hong Kong attracted more foreign direct
investment.
proFeSSionaL SUpport in
Setting Up
FlAnders investment & trAde provides potentiAl direCt
investors with AssistAnCe And inFormAtion regArding:
• site selection
• overview of all benefits, grants and incentives
• introduction to decision-makers
Close to YoU:
Flanders Investment & Trade has about
70 regional offices worldwide to assist you,
free of charge, wherever you are. For American investors
interested in initiating commercial operations in Flanders
(Belgium), initial contact can be made through our regional offices:
AtlAntA
Flanders Investment & Trade
Consulate General of Belgium
235 Peachtree Street NE
suite 1730
Atlanta, GA 30303
+1 404 659 96 11
atlanta@fitagency.com
ChiCAgo
Flanders Investment & Trade
150 North Wacker Drive, Suite 2100
Chicago, Illinois 60606
+1 312 251 06 22
chicago@fitagency.com
new York
Flanders Investment & Trade
Consulate General of Belgium
The New York Times Building
620 Eight Avenue, 44th floor
New York, NY 10018
+1 212 66 40 930
newyork@fitagency.com
los Angeles
Flanders Investment & Trade
Consulate General of Belgium
6100, Wilshire Boulevard, Suite 1200
Los Angeles, California 90048
+1 323 857 08 42
losangeles@fitagency.com
Gaucheretstraat 90
BE-1030 Brussels | Belgium
• legal aspects regarding setting up business locally
• identification of business opportunities
• integration into local community life
Visit our website
for more information:
www.investinflanders.com
and follow us on Twitter
twitter.com/InvestFlanders.
sAn FrAnCisCo
Flanders Investment & Trade
155 Montgomerystreet, suite 204
San Francisco, CA 94104
+1 415 869 60 93
sanfrancisco@fitagency.com
T: +32 2 504 88 71
Email: invest@fitagency.be
6 7

Gaucheretstraat 90 | BE-1030 Brussels | Belgium
T +32 2 504 88 71 | F +32 2 504 88 88
invest@fitagency.be | www.investinflanders.com
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