Belgium is a founding member of the European Union located in Western Europe. The Belgian economy is strongly globalized.
The gross value added (GVA) is generated by manufacturing industry, energy and water; construction; market services and non-market services.
The banking sector of Belgium is highly influenced by the neighbouring countries: Germany, France, Luxembourg and the Netherlands. Of the total 103 banks operating in Belgium 41 banks are branches of the banks from these countries.
|Population (2016)||11 289 853 (0.00%)|
|EU Status||member since 1952|
|National Currency||EUR (Euro) since 1 January 1999|
|Nominal GDP (2015)||409.8 bln EUR (+0.02%)|
|Nominal GDP per Capita (2015)||36 500 EUR (+0.01%)|
|Real GDP Growth (2015)||1.4 % (2014: 1.0 %)|
|CPI, MoM (Sep 2016)||-0.4 % (Aug 2016: 1.3 %)|
|CPI, YoY (Sep 2016)||1.8 % (Aug 2016: 2.0 %)|
|CPI, Year Average (2015)||0.6 % (2014: 0.5 %)|
|Unemployment Rate (2015)||8.5 % (unchanged)|
|Government Bond Yield (Sep 2016)||0.18 % (Aug 2016: 0.15 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||AA||very high credit quality, outlook negative|
|Moody's||Aa3||high grade, outlook stable|
|Withholding Tax||0.0 - 25.0%|
|Double Taxation Agreements||100 signed agreements|
|Exchange on Request||17 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 23 April 2014, Model 1|
|Financial Market Development||4.7 (max 7.0)||rank: 29th out of 138 countries|
|Banks' Soundness||5.2 (max 7.0)||rank: 57th out of 138 countries|
|Banking Industry Country Risk||2||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Euro)||Aaa||prime|
|Deposit Rates (Aug 2016, EUR)||0.13 % (Jul 2016: 0.18 %)|
|Banking Sector Structure|
|Number of Banks||97|
|Recent Changes (2015)||new banks: 1, closed banks: 4|
|Consolidated Assets (2015)||970.29 bln EUR (-2.62%)|
|KBC Bank||BNP Paribas|
|Belfius Bank||ING Group|
|List of Banks in Belgium|
Belgium joined the Euro Area on 1 January 1999.
According to Eurostat, nominal GDP of Belgium in 2015 was 409.8 bln EUR.
Belgium underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.3% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 1.4% which was below the Euro Area average (1.6%) and below the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Belgium was 36 500 EUR.
Belgium has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 12.8% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in Belgium in 2015 expressed as annual percentages of average consumer prices was 0.6% which was above the Euro Area average (0.0%) and above the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Belgium are shown in Table 1.
|Natural person, resident||25.0||15.0|
|Natural person, non-resident||25.0||15.0|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Belgium signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Belgium and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Belgium signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Belgium and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Belgium signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Belgium has FATCA agreement with the U.S. in effect since 23 April 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Belgium are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Belgian financial accounts hold in U.S. financial institutions will be reported to Belgian authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Belgium is scored 4.7 out of maximum 7.0 and ranked 29th out of 138 analysed economies. Soundness of banks is scored 5.2 bringing Belgium into the 57th place, trustworthiness and confidence of financial market is scored 4.5 (52nd place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Belgium is included into group '2' with economic risk scored '2' and industry risk scored '3'.
|Economic imbalances||very low|
|Credit risk in economy||low|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Belgium are summarised in Table 3.
|Scheme Participants||all credit institutions operating in Belgium, branches of non-EEA banks, branches of Belgian banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||time deposit, sight and savings accounts|
|Covered Currencies||EEA currencies|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 3. Deposit guarantee scheme in Belgium.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
EEA currencies are all official currencies of EEA members. Switzerland is not a EEA member, but because CHF is the official currency of Liechtenstein, CHF also belongs to EEA currencies.
So, only the deposits made with Belgian banks in the following currencies are covered by the deposit guarantee scheme of Belgium
|RON||Romanian new leu|
It should be also noted that deposits in non-EEA currencies (for example, USD and JPY) are not covered by the Belgian deposit guarantee scheme.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Belgium is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Currently there are 97 credit institutions operating in Belgium.
Recent structural changes (2013 - 2015) of the banking sector of Belgium are summarised in Table 4.
|Number of Opened Banks||5||6||1|
|Number of Closed Banks||6||6||4|
Table 4. Recent structural changes in the banking sector of Belgium.
All the credit institutions operating in Belgium can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||62|
The list of the most recently opened banks in Belgium is provided in Table 6.
|MeDirect Bank SA (new)||April 2015|
|Compagnie de Banque Privée Quilvest SA (new)||December 2014|
|Banque PSA Finance SA (new)||September 2014|
|Caisse d'Epargne Nord France Europe (new)||September 2014|
|Natixis Bank SA (new)||September 2014|
|Edmond de Rothschild (Europe) (new)||July 2014|
|Union Bank of India (new)||July 2014|
|CACEIS Bank Luxembourg SA (new)||November 2013|
|Banque Internationale à Luxembourg (closed)||September 2013|
|Mediterranean Bank plc (closed)||September 2013|
Table 6. The most recently opened banks in Belgium.
There are 62 branches of foreign banks from 13 different countries in Belgium. Table 7 shows 10 countries having the biggest number of branches in Belgium.
|Country of Origin||Number of Branches|