Belgium’s record year for foreign investment is the result of a 7.5% increase in the number of new projects compared to 2016. This performance places Belgium in 8th position in Europe. In addition, the number of jobs created by foreign companies in Belgium grew by 10% in 2017 compared to the year before.

Furthermore, the EY European Investment Monitor confirms that 30% of foreign company leaders had a more positive attitude towards the country’s investment climate in 2017 than in 2016.

In addition to the availability of a highly educated workforce, foreign companies also state the importance of infrastructure, labor cost reductions as well as the presence of a flexible labor market and a stable political landscape as key factors in making the decision to invest in Belgium and specifically in Flanders.

To maintain its competitive position, Belgium is currently working on lowering tax pressure. In 2018, the corporate tax rate was already reduced from 33% to 29% for large enterprises, and it will drop further to 25% in 2020. For SMEs, a separate system is being implemented: starting from 2020, the tax rate on taxable income lower than EUR 100,000 will be at 20% for SMEs in Belgium.

When looking ahead, 81% of the surveyed participants confirm their trust in Belgium’s and Flanders’ potential to handle future challenges in terms of R&D and innovation. Their trust in the country’s digital capacity is particularly on the rise: 35% of the companies surveyed in the EY study are forecasting that the digital industry will be key to Belgium’s growth in the coming years, followed by pharmaceuticals and biotech (30%), logistics and distribution (24%), and business-to-business (15%).