Exporting to Belgium
Strategic location
Belgium is situated in the heart of Europe and is home to many international organisations and multinational companies, making it an attractive location to be commercially active. Belgium’s proximity to the UK is also a great advantage. Its good transport links mean you can get there and back for meetings within a day.
Strong and open economy
Belgium is an affluent and multicultural country with a developed, modern, private-enterprise economy. It’s an open and competitive market and barriers to market entry are low. There are opportunities in most sectors, in particular for high-value products and services.
Similarities to the UK
Belgium has a similar business culture to the UK’s and English is an accepted business language. British products enjoy a good reputation and if your product or service is successful in the UK, there’s a good chance you’ll be successful in Belgium.
Ease of doing business
46th
out of 190 countries, World Bank 2019
Currency
Euro
Business languages
French, Dutch, German, English
GDP per capita
$46,696
UK is $41,030 (IMF, 2019)
Economic growth
1.4%
(IMF, 2019)
Time zone
GMT +1
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Belgium have identified particular opportunities for UK businesses in the following sectors.
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Renewable energy
Renewable energy is set to become an even more important part of Belgium’s future energy mix. Wind energy is especially promising, Belgium currently ranks 4th in Europe in terms of installed offshore wind capacity (Wind Europe, 2018).
Offshore wind
By 2020, Belgium will have 2.3 GW offshore wind capacity installed. An additional 1.75 GW will be auctioned in order to have 4 GW installed by 2030 (Economie, 2019) This results in opportunities for companies with experience in offshore wind development, construction, operations and maintenance
Access to global market leaders
In DEME and Jan De Nul, Belgium has two global leaders in offshore energy development and construction. They’re involved in growing markets and can offer supply chain opportunities for UK businesses.
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Food and drink
Belgium and the UK share an appetite for high-quality food and drink and a willingness to sample each other’s culinary delicacies.
Demand for healthy and ‘free from’ products
There’s considerable demand in Belgium for tastier and healthier foods containing less salt, fat and sugar. Consumers want to eat enough fruit and vegetables and buy more seasonal and vegetarian products, and support sustainable packaging.
Private label products
Private label products have become increasingly popular, mainly because the quality of these products has improved over the years. Private label products make up 40% of market share (Private Label Manufacturers Association, 2019). Top brands face fierce competition not only from private label products but also from smaller, more niche brands.
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Financial and professional services
Located at the crossroads of Western Europe, Belgium enjoys a key position in the EU and in relation to international economies. Belgian financial and professional services opportunities are based around the presence of major financial infrastructure institutions and EU financial associations, national and international commercial banks, monetary institutes and insurance companies.
Service economy
In Belgium, the vast majority of the labour force belongs to the services sector. Within this sector, financial services, legal services, ICT and accountancy contribute significantly to Belgian GDP. Major financial infrastructure providers with headquarters in Brussels, such as Swift and Euroclear, cater to the needs of international financial markets.
Global gateway
Belgium has a track record for business-to-business financial services and is renowned as a consumer test market. If you’re successful in Belgium, it’s likely you’ll also find success elsewhere in the EU. Fintech start-ups and scale-ups can benefit from Belgium’s multicultural and multilingual population to ease access to other markets.
Geographical, political and financial centre
In addition to the 90 banks present in Belgium, over 700 banks and related financial institutions are registered in Belgium to carry out their activities in the country and across Europe (Febelfin, 2016-2017). Belgium is valued as a hub for financial activity by diplomats, lobbyists, multinationals and expats. It offers considerable opportunities for start-ups and scale-ups who offer solutions for this industry.
Doing business Belgium
Preparing to export
Taxation
The UK and Belgium have signed a double taxation agreement that ensures the same income is not taxed twice.
VAT
If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Belgium, provided certain conditions are met.
The standard rate of VAT is currently 21%. A reduced rate of 12% applies to social housing and agricultural products. A 6% tax rate applies to basic foodstuffs, water, hotel services, property restoration and certain other supplies.
You can find out more about paying taxes, including VAT, on the Belgian tax authority’s website.
Corporate tax
The corporation tax rate in Belgium is 29.58%, and is set to decrease to 25% in 2021.
Standards
Products and packaging should meet EU standards. The Belgian Bureau for Standardisation is responsible for developing, publishing and selling standards in Belgium.
Labelling
You should provide information for users in Belgium’s official languages of Dutch and French. Textile products must be labelled with information on fibre content. Ask the importer about further requirements for specific products.
Operating in Belgium
Intellectual property
As a first step, we advise you to speak to an intellectual property (IP) lawyer if you think you need patent protection when exporting.
Trademarks, designs, patents and copyright are the principal forms of IP protection available to companies and individuals.
The Belgian Office for Intellectual Property handles queries about IP in Belgium.
Payment terms
The standard period for paying invoices in Belgium is 30 days, this is the scenario where the agreement between buyer and seller doesn’t state otherwise.
Contracting parties however can agree explicitly to shorten or expand the payment period, with expansion topped off to max 60 days.
Business culture
In general, Belgians have good compromise and negotiation skills. They appreciate a direct and logical communication style and have a flexible approach to forging win-win deals. One should avoid any confrontational or high-pressure tactic.
During meetings, it is usual to engage in small talk before discussing business. You should wait for your Belgian counterpart to initiate the business discussion. Belgians are professional and pragmatic and will appreciate a convincing and detailed presentation.
Punctuality and respect for deadlines are paramount. Meetings are usually well structured and efficiently run, and a pre-set agenda is followed.
Business cards are often used as introduction and are exchanged without formal ritual.
Belgian business dress code is conservative.
Next steps
DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.
