You are here

A regional HQ or shared service center in Flanders

There are 5 possible scenarios for establishing a business presence in Flanders. One option is to set up a regional HQ or shared service center. Discover the different tax incentives your company may be eligible for.

What it is

A Flanders-based regional head office or shared service center of a parent company (headquartered abroad):

  • ensures activities ranging from management functions to procurement, strategic planning, corporate communications, marketing and sales, research and development, IT, legal, accounting and tax services.
  • constitutes a Belgian business entity that acts as a headquarters for local affiliated companies.

Direct tax aspects

  • Activities of the regional HQs and shared services centers can be determined on a cost-plus basis. In addition, this can be secured by an advance tax ruling.
  • Effective tax rate can be lowered significantly by applying for the Notional Interest Deduction.
  • Attractive incentives for R&D activities and the management of intellectual property.
  • Full access to European Directives such as the Interest and Royalty Directive and the Parent-Subsidiary Directive.
  • Regional headquarters with qualifying parent companies located in treaty jurisdictions are eligible for a domestic dividend withholding tax exemption.
  • Interesting expatriate regime for individuals.

Indirect tax aspects

  • Belgian VAT registration and full (VAT) bookkeeping are required.
  • Some activities, like treasury, will potentially not generate an input VAT credit. This means that the activities should be analyzed thoroughly to determine the business entity’s right to deduct input VAT in Flanders.
  • The financial impact of non-recoverable VAT can be limited if VAT authorities agree to a ‘real use’ methodology for input VAT deduction.
  • The recoverable Belgian input VAT can be recorded through the Belgian VAT return procedure.

How to establish your HQ, sales or marketing activities in Flanders

Let us help you!

  • We can introduce you to other companies, banks and regulators
  • We organize site visits to real estate locations
  • We assist with all legal aspects of setting up a business
  • We're an official government agency
  • Our services are completely free
  • We are a team of international experts

Receive our free handbook

Choose your ideal business scenario in our free handbook and discover: 

  • What makes Flanders a strategic and well-connected region
  • How to use its tax system and affordable office space to your advantage
  • Why the region is a great place for your expat employees
  • And much, much more

Handbook to setting up HQ, sales or marketing operations in Flanders

In addition to the ebook, I agree to receive one or two follow-up emails