2024: Doing Business In Belgium
Part 1: Doing Business in BELGIUM
What is the current business climate in your jurisdiction, including major political, economic, and/or legal activities on the horizon in your country that could have a big impact on businesses?
The business climate in Belgium is currently navigating through a series of economic and political challenges, with significant implications for businesses operating within and entering the market. In 2024, Belgium is grappling with a sluggish economic growth forecast, with growth expected to be around 1% due to a weakening external environment and slowing domestic demand. Inflation is also a concern, projected to rise above 4%, partly due to fading energy price support measures.
Politically, Belgium is preparing for dual elections in June 2024, both domestically and for the European Union, adding a layer of uncertainty. During this time, Belgium will also hold the Presidency of the EU Council, focusing on key areas such as the green transition, economic competitiveness, and social issues. This role will involve navigating complex legislative agendas, including efforts to advance environmental legislation and manage EU-wide political challenges such as the relationship with Hungary and issues surrounding Ukraine.
Legally, there are anticipated reforms in several sectors that could impact businesses. Belgium is actively working on legislation to support a green restructuring of the economy, which will involve new environmental regulations and possibly changes in business practices to align with these green initiatives.
For businesses, these elements highlight the need for careful monitoring of fiscal policies, regulatory changes, and the broader economic and political landscape in Belgium, especially as the country aims to balance its economic ambitions with sustainability and social priorities.
From what countries do you see the most inbound investment? What about outbound?
Belgium's investment landscape is shaped by strong ties with key global and European economies. Major inbound investments stem from neighboring countries like Germany, France, and the Netherlands, as well as significant capital from the United States, reflecting Belgium's strategic EU position and its role in hosting EU institutions. These countries share deep economic and trade relationships with Belgium, supported by its advanced industrial sectors. Outbound investments primarily target these same nations, emphasizing the interconnected nature of European markets. Additionally, the United States is a notable destination for Belgian investment, attractive for its large market size and robust investment environment.
In what industries/sectors are you seeing the most opportunity for foreign investment?
In Belgium, the most promising sectors for foreign investment include pharmaceuticals, chemicals, and technology. The pharmaceutical sector benefits from Belgium's strong research capabilities and infrastructure, making it a hub for biotech and healthcare innovation. The chemical sector is one of the largest and most advanced, due to Belgium's strategic port locations like Antwerp, which facilitate extensive trade flows. Additionally, technology, especially related to digital transformation and green technology, is gaining momentum, driven by the country's focus on innovation and sustainability. These industries are bolstered by Belgium's central location in Europe and its skilled, multilingual workforce.
What advantages and pitfalls should others know about doing business in your country?
Doing business in Belgium offers both significant advantages and notable challenges that prospective investors should consider. Among the primary benefits, Belgium's strategic location at the heart of Europe provides businesses with exceptional access to major EU markets, and its port infrastructure, particularly in Antwerp, is a significant asset for trade and logistics. The country's workforce is highly skilled and multilingual, advantageous in a region characterized by diverse languages and cultures. Belgium's strong focus on R&D and a supportive government encouraging innovation makes it particularly appealing for pharmaceuticals, high-tech, and manufacturing sectors.
On the downside, Belgium's complex bureaucratic environment can pose challenges. The tax burden is relatively high, which might affect business growth and staffing costs. The divided nature of the country, with distinct regions speaking different languages and sometimes having different business regulations, can complicate operations and market entry strategies. Furthermore, decision-making processes can be slow due to the need for consensus across linguistic and regional divides, which may affect the pace of business activities.
Investors should also be aware of the ease of setting up businesses. Belgium offers a streamlined process for company incorporation, though navigating the local legal and tax landscape requires careful planning and possibly local assistance. These factors make Belgium a mixed landscape for business, offering substantial opportunities tempered by certain operational complexities.
What is one cultural fact or custom about your country that others should know when doing
business there?
In Belgium, language and regional identity play critical roles in business and social interactions. The country is divided into three main linguistic regions: Dutch-speaking Flanders in the north, French-speaking Wallonia in the south, and a bilingual Brussels. This linguistic divide can influence business practices and communications. Therefore, it's crucial for business professionals to be aware of these regional differences and consider them in their approach. Using the correct language for the region or opting for English, a neutral language, can help avoid any inadvertent cultural insensitivity and foster smoother business relations.
Part 2: About Your Firm
What distinguishes your firm from others in your market?
CMS Belgium stands out in the legal landscape for its unparalleled integration of local expertise with a vast international network. CMS Belgium is uniquely positioned to offer its clients cutting-edge legal solutions that are both globally informed and locally crafted. This dual advantage ensures that our clients receive deeply nuanced guidance that is as globally competitive as it is regionally tailored. With specialties across diverse legal fields, from corporate and M&A to banking, IP, and dispute resolution, we ensure comprehensive legal coverage with a proactive, client-centered approach. Our proactive involvement in major transactions and cross-border operations underscores our commitment to excellence and client success, making us a trusted partner for businesses navigating complex legal challenges at home and abroad.
What are three words that describe the culture of your firm?
Collaborative, innovative, and client-focused.
How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social, and Governance (ESG) initiatives?
CMS Belgium is deeply committed to CSR alongside its robust ESG initiatives. This approach ensures that ethical practices, community engagement, and sustainability are at the forefront of their business operations. We advise our clients on incorporating CSR values into their core strategies, covering areas such as ethical labor practices, community development, and charitable activities. Together with ESG considerations, we provide comprehensive advice on future mobility, climate change strategies, ESG due diligence, risk assessments, corporate digital responsibility, sustainable supply chains, whistleblowing, ESG funds, and green real estate finance. Our approach is integrated and multidisciplinary, this enables us to anticipate and understand the issues in the rapidly evolving landscape, which in turn allows us to develop innovative solutions for and with our clients. Our aim is to help our clients successfully meet the demands of climate change, technological disruption, urbanization, and social concerns.
Are there any new and exciting initiatives, practice areas, or industry focuses in your firm?
CMS Belgium offers a comprehensive range of legal services across various sectors. Key focus areas for CMS Belgium include Banking and Finance, Commercial Law, Competition and European Union Law, Corporate/M&A, Dispute Resolution, Employment and Pensions, and Intellectual Property. This is complemented by a very strong sectoral presence in industries such as Energy, Life Sciences, Real Estate, Technology, Media, and Telecommunications. Our ability to provide tailored legal solutions across different jurisdictions makes us a significant player in the global legal landscape, supporting clients from multinationals to startups in navigating complex legal challenges.
business there?