WALLONIA – BELGIUM, a continuous success story
Specificities of Wallonia - Belgium • • • • • • • •
A 500 million consumer market Transportation network Land and buildings Fiscal system Numerous incentives Workforce Quality of life Governmental authorities
A 500 million consumer market
Wallonia, at the heart of Europe
Symbiosis of European cultures
Brussels, global business centre
Wallonia, at the heart of Europe Trucking time
Inhabitants
GDP million â‚Ź
1 hour
4,700,000
66,931
2 hours
17,800,000
277,641
3 hours
42,300,000
604,860
4 hours
58,800,000
954,390
Symbiosis of European cultures
Brussels, global business centre •
Capital of Belgium;
•
Capital of the EU;
•
Headquarters of NATO;
•
Centre of political decision-making;
•
4th in the list of the European business cities;
•
1,700 international corporations;
•
3rd most important conference centre in Europe;
•
World’s 4th Open Trade Economy;
•
2nd largest concentration of journalists in the world.
Transportation network
Motorways
Railways
Airports
Ports
Density of the road network Km per square Km 5,08
0,117
5
Density of the rail network Km per square Km 0,106
0,093 0,073
1,92
1,72
1,32
0,060 0,057 0,054 0,034
1,11
0,67
0,51
Source : IMD World Competitiveness Yearbook 2017
Number of passenger (million)
• 500 acres; • Specialised in passengers transport; • 2nd most punctual airport in the world • base for conducting tests by aeronautical industries.
5,2
5,9
6,9 6,5 6,7 6,4
7,3 7,6
4
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2,8 3
2007
2005
1,9 2,2
2006
Brussels South Charleroi Airport
660.000 2016
590.579 2014
649.829
561.000 2013
2015
576.664 2012
674.469 2011
482.121 2009
639.434
518.650 2008
2010
489.870 2007
405.949 2006
2005
• 1st cargo hub in Belgium • 8th cargo hub in Europe • 24th cargo hub Worldwide • European hub for TNT
325.712
Annual tonnage evolution
2017
Liege Airport
716.988
Source : http://www.charleroi-airport.com/
Source : http://www.liegeairport.com
Links with France, the Netherlands and Flanders
Land and buildings
Economic activities parks
Low real estate costs
Land prices
Economic activities parks • • •
More than 280 business parks 7,600 companies 162,000 jobs
23 8
18 Source : UWE : l’Entreprise je veux savoir ! 2017
57
54
21 34
50
Number of business parks managed by the economic development intercommunal agencies
Low real estate costs
Prime office rents - € /m² /year Namur Brussels Amsterdam Frankfurt-am-Main Milan
155 275 370 444 500
Luxembourg
576
Dublin
592
Paris
790
London
1.513
Prime industrial rents - € / m²/year Liège Milan Paris
39 51 55
Brussels Frankfurt-am-Main Dublin
58 72 81
Amsterdam
92
Luxembourg
96
London
Source : Cushman & Wakefield – Selected Europe Prime Rents 2016 Q4
177
Land and buildings : sale price (m²)
75 - 165 Brabant Wallon Hainaut 23 - 70
Liège 45 - 90
Namur 45 - 90
Luxembourg 20 - 40
source :
2018
Fiscal system
Nominative / Effective corporate tax rates
Low tax rates for businesses
Corporate tax rate
Corporate tax rates
30,6
31,3
Germany
Spain
Italy
Belgium - SME
Netherlands
20
UK
25 20
30,18
Belgium - General rate
*
29
* 25% from 2020
Source :
France
38,9
Low tax rates for businesses Wallonia offers different measures for businesses and expatriates : •
85% deduction from net innovation income (patents, software, …)
•
13,5% investment deduction on patents, R&D related investments
•
80% exemption of payment of salary withholding tax researchers
•
100% exemption capital gains on shares
•
Favourable expatriate tax regime (low personal taxation)
•
Favourable regime for European Distribution Center
•
Tax ruling for legal certainty
•
Etc,….
Numerous incentives
Investment incentives
R&D incentives
Employment incentives
Export incentives
Investments incentives : up to 25 % Calculated, as a percentage, on the purchase of : • Land and building • New equipment • Intangible investments (patents, licenses, technical expertise whether patented or not)
Calculation of the grant is based on various criteria : • Sector of activity • Size of the company • Job creation • Set-up location (in or out investments zones)
R&D incentives
Subsidy for Basic Industrial Research : 50% (up to 70% for SME’s)
Advance loan for Applied Research : 50% (up to 70% for SME’s)
Employment incentives The FOREM is the regional public service for employment and professional training. Missions : •
Availability of specific profiles in a given region
•
Real cost of salaries
•
Recruitment
•
Training
Reduction of salary costs with employment and training incentives 18
11
Year 1
Year 2
9
Year 3
Average over a 4 year period : 11%
7
Year 4
Export incentives
How ? • • •
Financial Expertise and experience Presence abroad : more than 105 Foreign Trade Officers
What ? • • • • • • • •
Support at all stages Strategy Marketing and communication Training and recruitment of staff Prospection (business trips, market studies, trade fairs) Opening of a trade office abroad Building of partnerships Export guarantees, financing and insurances
Workforce
Overall productivity
Education
Overall productivity GDP per hour worked as % of USA 100 96,4 93,8 92,9 92,8 90,9
86
85,9 85,3 82,5
78
76,4 75,7 48,3
Source : OECD 2017
43,8
Education Language skills - are meeting the needs of enterprises (max. = 9,26) 9,26
8,21 6,95 4,47
4,26
4,14
3,83
University Education - meets the needs of a competitive economy (max. = 8,88) 8,56
7,72
7,58
6,62
6,41
6,17
Source : IMD World Competitiveness Yearbook 2017
6,16
5,15
Quality of life
A wealthy country
with a high quality of life
at a reasonable cost
A wealthy country‌ GDP per capita is higher in Belgium than the European average and than in most of its neighbouring countries
GDP per capita in PPS Index EU-28=100 123
118
104
107
100
97
92
Source : Eurostat 2017
‌with a high quality of life ‌ Quality of life is high (max. = 9,80) Netherlands
9,46
Germany
9,22
Luxembourg
9,00
Belgium
8,50
Spain
8,46
France UK Italy
8,25 7,58 7,15
Source : IMD World Competitiveness Yearbook 2014
Source : IMD World Competitiveness Yearbook 2017
‌at a reasonable cost Index of a basket of goods & services in major cities, including housing (NY city = 100) UK
96,7
France
80,2
Italy
79,2
Germany
74,1
Luxembourg
72,4
Belgium
72,4
Spain
70,8
Source : IMD World Competitiveness Yearbook 2017
Governmental authorities
Effective help from the AWEx Invest
Effective help from the Wallonia Export-Investment Agency The foreign investment division of the Wallonia Export-Investment Agency provides information, advice, contacts and solutions to foreign companies considering expanding business in Southern Belgium • • •
Clients are treated on a confidentiality basis Services are free of charge Working in close connections with the Belgian Embassies Our job :
DETECT
HELP
CONVINCE
FOLLOW UP
Effective help from the Wallonia Export-Investment Agency Social Partners
Universities
Clusters
Regional Administrations
Embassies
Banks
Economic development agencies
Real estate agencies
Consultants
Federal Public Services
FOREM
Chambers of Commerce
Wallonia Union of Enterprises (UWE)
Local Investment Federations Agencies and industries
Les clusters
Effective help from the Wallonia Export-Investment Agency
TAX & LEGAL ASSISTANCE
SITE SELECTION & REAL ESTATE
RECRUITEMENT AND EMPLOYMENT LEGISLATION
INFORMATION (WALLONIA, SPECIFIC SECTOR, …)
ASSISTANCE WITH REGIONAL AND EUROPEAN R&D PROGRAMS
They have chosen Wallonia – Belgium to develop their activities
They have chosen Wallonia BelgiumTHE to develop activities 8. HELP– FROM AWEXtheir INVEST
Wallonia Export-Investment Agency Namur Office Park Avenue des Dessus de Lives, 6 B-5101 Loyers (Namur) – BELGIUM (T) +32 81 33 28 50 (F) +32 81 33 28 69 welcome@investinwallonia.be www.investinwallonia.be