US companieScroSS the atLantic to

FLanderS, the gateway to eUrope

2 3

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 eUropeLocated 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.

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

US companieS, we invite yoU to do BUSineSS in FLanderS

• 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.

did yoU Know?

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 invest-

ment project in Flanders. Import and export duties, for instance, can also be

included in an individual tax ruling.

notionaL intereSt dedUction: a Strong and UniqUe incentive

1 National Bank of Belgium, data of year 2010 (SMEs and large enterprises)2 World Bank, Doing Business, 2012.

EFFECTIVE EU CORPORATE TAX RATES

23,2

22.9

20.9

11,9

8,2

4,8

4,1

25

20

15

10

5

0DE NL IE FR BE LUXUK

4 5

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

the hUB oF eUrope 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.

FaSt and aFFordaBLe oFFice SpaceCompared 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).

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).

BrUSSeLS, where deciSionS are made

a hotBed For innovation 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 world-

wide, right after the R&D center in the Atlanta headquarters. Every year,

500 new drinks are developed in Belgium. Following pre-trials, success-

ful products are destined for Europe, Africa, Eurasia and the Middle East.

Artevelde tower, Ghent

MULTIMODAL TRANSPORT INFRASTRUCTURE

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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.

• 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.

AtlAntAFlanders Investment & TradeConsulate General of Belgium

235 Peachtree Street NEsuite 1730

Atlanta, GA 30303+1 404 659 96 11

atlanta@fitagency.com

new YorkFlanders Investment & TradeConsulate General of BelgiumThe New York Times Building620 Eight Avenue, 44th floor

New York, NY 10018+1 212 66 40 930

newyork@fitagency.com

ChiCAgoFlanders Investment & Trade

150 North Wacker Drive, Suite 2100Chicago, Illinois 60606

+1 312 251 06 22chicago@fitagency.com

los AngelesFlanders Investment & TradeConsulate General of Belgium

6100, Wilshire Boulevard, Suite 1200Los Angeles, California 90048

+1 323 857 08 42losangeles@fitagency.com

sAn FrAnCisCoFlanders Investment & Trade

155 Montgomerystreet, suite 204San Francisco, CA 94104

+1 415 869 60 93sanfrancisco@fitagency.com

proFeSSionaL SUpport in

Setting Up

Visit our website

for more information:

www.investinflanders.com

and follow us on Twitter

twitter.com/InvestFlanders.

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).

Gaucheretstraat 90BE-1030 Brussels | Belgium

T: +32 2 504 88 71 Email: invest@fitagency.be

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:

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.

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

• legal aspects regarding setting up business locally

• identification of business opportunities

• integration into local community life

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

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