ENCYCLOPEDIA
Located at the heart of Western Europe, Belgium serves as a key transport hub connecting major European markets. As a founding member of the EU and home to headquarters of multiple international organisations, Belgium boasts a strategic position within the EU and an open foreign investment policy. It has become a strategic foothold for Chinese enterprises entering the European market. This article covers foreign investment market access, foreign exchange administration and on-the-ground investment cases, delivering practical guidance for Chinese companies expanding into Belgium.
Belgium maintains an overall open stance toward foreign investment. Its legislation imposes no cap on foreign equity ownership and does not maintain a dedicated negative list for restricted industries. Foreign investors receive national treatment equal to local Belgian firms and may hold 100% equity in Belgian companies. Nevertheless, for sectors involving public interests, national security and strategic industries, Belgium enforces oversight via sector-specific permits and dedicated investment reviews.
Investment in financial services, insurance, healthcare, commercial retail, tourism, transportation, telecommunications and commercial services requires prior approval from relevant Belgian authorities. Additional licensing rules apply: casinos need federal operating licences, and polluting enterprises require special permits. Inland waterway transport must be operated by EU-based entities or companies resident within the EU. Airline operators must be controlled by EU legal entities or natural persons.
Investments in the above sectors, alongside coal mining, mineral extraction, power, gas and thermal energy production, vehicle maintenance and repair, restaurants and cafes, are ineligible for regional government subsidies.
Federal and regional bodies oversee domestic and foreign investment: the Federal Public Service for Economy, Flanders Investment & Trade (FIT), Wallonia Export-Investment Agency (AWEX), and hub.brussels for the Brussels-Capital Region.
All regional and provincial governments operate dedicated investment and trade agencies, offering free advisory services covering investment climate, commercial law, company incorporation, labour and HR, and commercial land. Projects aligned with regional priority sectors may apply for public funding through these agencies, with government support available via equity participation or loans.
Wallonia prioritises investments in five sectors: life sciences, food processing, mechanical engineering, transport & logistics, and aerospace. Flanders encourages foreign investment in environmental protection, logistics, chemicals, information technology, life sciences, and automotive & auto parts. The Brussels-Capital Region follows similar sectoral guidance.
Eligible foreign projects may access federal and regional incentives including corporate income tax reductions, R&D tax relief and preferential tax rates for intellectual property.
Belgium launched its foreign direct investment (FDI) review mechanism on 1 July 2023. Non-EU investors seeking capital increase, equity participation or acquisition of Belgian entities must submit filings to the Federal Review Committee once relevant thresholds are met. Investments can only be completed upon official approval.
Reviewable sectors fall into two categories: Category 1: Infrastructure for energy, transport, water resources, healthcare, media and data processing; air and space transport, financial infrastructure, and infrastructure for elections and sensitive facilities; technologies and raw materials critical to public health, national defence, public safety and public order; military equipment; supply of critical inputs; access to and control of sensitive information including personal data; personal security; media freedom and pluralism; and biotechnological strategic technologies.
Category 2: National defence, energy, cybersecurity, electronic communications and digital infrastructure.
Between July 2024 and June 2025, the Investment Screening Committee (ISC) reviewed 100 foreign investment transactions. 89 transactions secured approval, with zero rejected cases, demonstrating the openness of the review framework.
Belgium imposes no foreign exchange controls. Investors may open EUR or major foreign currency accounts freely, with unrestricted cross-border capital flows and no mandatory filing requirements. Cash exceeding EUR 10,000 carried across borders requires a declaration. Foreign employees working in Belgium may remit all legal after-tax income overseas.
After completing annual financial statements and settling all applicable corporate income tax, foreign-invested enterprises may remit distributable profits overseas as dividends subject to resolutions of the shareholders’ meeting or board of directors.
In practice, banks typically request dividend resolutions, audited financial statements and tax clearance certificates. Belgium places no limits on the amount or frequency of profit repatriation; funds may be remitted freely.
For capital changes including capital injection, equity transfer, capital reduction and liquidation, foreign-invested enterprises may process inbound and outbound capital transfers in accordance with law, with no foreign exchange quota restrictions.
Belgium does not regulate foreign borrowing and repayment by enterprises through foreign exchange controls. Companies may borrow from overseas financial institutions or related parties for operational needs. Currency, tenor and repayment terms are negotiated freely between parties. Banks primarily verify transaction authenticity, contractual terms and anti-money laundering compliance during fund transfers, with no administrative approval or quota limits.
Cross-border payments for goods trade under the current account are unrestricted, with no foreign exchange quotas or direct controls. Banks require contracts, invoices and supporting documents for authenticity verification to mitigate money laundering risks. Exports of strategic goods, military items and high-tech products are subject to EU and Belgian export controls.
Payments for services including consulting, transportation and insurance are highly liberalised; banks conduct reviews based on contracts and invoices. Remittance of dividends, interest and royalties faces no special restrictions, though relevant income tax must be duly paid. Transfers such as gifts and grants are generally unrestricted, while large-value transactions require compliance reporting.
Chinese investors operate across finance, logistics, manufacturing, ICT and life sciences in Belgium.
Financial Institutions: Bank of China Brussels Branch, ICBC Brussels Branch
Logistics & Shipping: COSCO SHIPPING’s stake in the Port of Antwerp Gateway Terminal, Cainiao’s logistics hub in Liège, Hongyuan Logistics
Manufacturing: Geely’s acquisition of Volvo; Volvo Cars Ghent Plant, Belgium’s largest automotive production facility; COFCO Benna Packaging with a EUR 120 million investment, operating two fully automatic can production lines with an annual capacity of 1.6 billion cans.
Technology & Industrial Parks: Huawei Belgium, China-Belgium Technology Center (CBTC). As the first Chinese science and technology overseas park in Europe, the CBTC was signed in March 2014 witnessed by President Xi Jinping and then Belgian Prime Minister Elio Di Rupo, and included in the joint statement of the two nations. Planned investment totals USD 286 million, with a planned gross floor area of 125,000 sqm to be built in three phases.
New Energy: Yunyi Electric invested EUR 30 million to set up a wholly-owned subsidiary in Belgium. Sunwoda commissioned a 10MW/55MWh distribution-side energy storage project in Belgium. High-tech cooperation between China and Belgium continues to deepen.
Belgium keeps its investment door open while refining its compliance framework. The FDI review regime effective from 1 July 2023 marks a shift from fully open investment to managed openness. Belgium ranks 24th in the Global Innovation Index and 18th in the IMD World Competitiveness Ranking. Its core investment value lies in leveraging its EU hub position to access 500 million consumers, supported by innovative tax incentives and logistics advantages for long-term growth. With solid compliance preparation, Chinese investors will find broad opportunities in Belgium.
If you are planning investments in Belgium, please contact CHYIELD.
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