Methods of Payment

Belgian importers are relatively small and tend to press for the most lenient credit terms possible, since they have fewer sources of inexpensive capital. Belgian importers are also accustomed to being offered flexible payment terms, particularly from neighboring trading partners such as France, Germany, the Netherlands, the UK, Switzerland, and, to a lesser extent, Italy. Extended payment terms of 30, 60, 90 and even 120 days are not unusual, though the most common payment term is 30 days. Belgian businesses however, like many European ones, routinely delay payment beyond the agreed upon terms. In Belgium, 43 percent of all payments are not made by their anticipated due date, although 80 percent of these are paid within the 30 days following the original deadline. In short, 91 percent of all payments by Belgian businesses are made within 60 days. This is a better record than Italy’s or the UK’s, and on par with France and the Netherlands.

Since the use of credit is widespread, offering more flexible credit terms can be an important factor in winning sales contracts in Belgium. U.S. firms should consider this option, provided they are able and willing to offer such terms and have done a full credit check on the Belgian company. Even then, however, it is advisable to try several shipments on a secured credit basis before moving to more lenient terms. There are several local credit reporting agencies available, including Dun & Bradstreet and Graydon.

Import duties and value added tax (VAT) are applied to the CIF (Cost Insurance Freight) value of goods. The rate of import duties is the same rate as applied by all EU countries. Since products coming from other EU member states enter Belgium duty free, U.S. products often start off with an average 5-6% price disadvantage. By offering favorable credit terms, U.S. suppliers can help their importers offset a portion of that disadvantage.
For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at https://www.trade.gov/trade-finance-guide-quick-reference-us-exporters.

Banking Systems

The Belgian banking system is sophisticated and liberal. Standardized customer account numbers for all financial intermediaries are widely used, and internet and phone banking are well developed. There are no restrictions on the free movement of capital and regulatory requirements are minimal. There is a particularly wide and flexible range of loan products offered to companies, with no discrimination as to the nationality of the investor. There are also many options available when it comes to raising risk capital. Thanks to an efficient branch network, there is many Belgian and foreign banks servicing the country. Due to the sheer volume of international business carried out in Belgium, more than half of all banking transactions are international financial transactions. Most Belgian banks also have an extensive international network based on strategically located branches in the main financial markets around the world. Several of the 106 banks located in Belgium feature prominently in the top 100 international banks. 

All credit institutions (banks and savings banks) operate under the same legal framework and are monitored by the same supervisory authorities. Since 2017, the supervision of systemically important Belgian banks lies with the ECB. The country has not lost any correspondent banking relationships in the past three years, nor are there any correspondent banking relationships currently in jeopardy. 

Febelfin represents the whole financial sector (banks, investment funds, leasing companies, stockbrokers, asset managers, and companies offering credit to the household sector). The four main Belgian banks are ING Belgium, Belfius, BNP Paribas-Fortis and KBC. They offer a full range of financial services, with special account facilities for non-Belgian nationals. Banking services are also available from the Post Office. Banking hours are normally 9.00 am to 4.00 pm, Monday through Friday.

The main bankcard used in Belgium is the Mister Cash-Bancontact debit card, issued along with a PIN number upon opening a bank account in Belgium. To open an account, proof of identity, such as a passport, is required. The Bancontact card can be used to withdraw cash at ATMs, and to pay for almost anything in Belgium, from a newspaper, parking meter, gasoline, or a loaf of bread from the bakery. Credit options are also available on application. All bank ATMs in Belgium accept the Bancontact card; some accept MasterCard, Visa and other credit and debit cards. The major credit cards are generally accepted in stores, restaurants, and hotels.
For more information on the banking system please read the section Capital Markets and Portfolio Investment of the Investment Climate Statement.

Foreign Exchange Controls

There are no foreign exchange limitations on the transfer of capital or profits in Belgium, except in exceptional situations (e.g., as with UN sanctions).

U.S. Banks and Local Correspondent Banks 

Citibank Europe Public Limited Company (PLC) – Belgium Branch operates as a branch of Citibank Europe PLC, headquartered in Dublin, Ireland. It offers a focused range of financial services in Belgium including savings accounts, consumer and car loans, and trading accounts. Citibank’s Belgian branch is relatively small in market share terms—ranking around the 50th position among Belgian banks—with total assets of approximately €460 million.

Banks with U.S. Correspondent Arrangements

• BNP Paribas Fortis (BNPPF)
  BNP Paribas Fortis is Belgium’s largest bank and a core subsidiary of France’s BNP Paribas Group, one of the world’s leading financial institutions. In Belgium and the broader Benelux region, BNPPF provides a full range of services including retail, corporate, investment, and private banking. BNP Paribas Fortis maintains U.S. correspondent banking relationships and offices in New York, Stanford (CT), Dallas, and Boston, serving as a key link for transatlantic financial transactions. The bank was acquired by BNP Paribas in 2009 following the government-led restructuring of the Fortis Group during the 2008-2009 financial crisis. Since then, it has operated under the BNP Paribas Fortis name and remains Belgium’s leading retail and corporate bank.
• KBC Group
  KBC is one of Belgium’s major integrated bank-insurance groups, focusing on retail and private banking, corporate services, asset management, and market activities. It has a strong presence in Belgium, the Czech Republic, Slovakia, Hungary, and Bulgaria—markets collectively considered its “second home.”
  In Belgium, the group operates under the KBC brand in Flanders, Brussels, and the German-speaking community, and as CBC Banque in Wallonia. KBC maintains U.S. offices in New York, Atlanta, and Los Angeles, supporting trade finance, corporate banking, and investment services.
• ING Belgium
  ING Belgium is part of the Netherlands-based ING Group, one of Europe’s largest financial institutions. ING offers a broad range of retail, commercial, and investment banking services, as well as insurance and asset management. Within the United States, ING Group operates through its subsidiaries primarily in retirement services, investment management, and insurance. ING’s U.S. operations are headquartered in Atlanta, with additional major offices in Hartford, Minneapolis, Denver, Des Moines, and Phoenix.
• Belfius Bank and Insurance
  Belfius Bank and Insurance, formerly Dexia Bank Belgium, was nationalized by the Belgian government in 2011 after the collapse of the Dexia Group. The Belgian state purchased Belfius for €4 billion, ensuring continuity of service and financial stability. Headquartered in Brussels, Belfius is a state-owned, for-profit PLC providing retail, corporate, and public-sector banking as well as insurance products. It continues to play a key role in financing Belgian municipalities and infrastructure projects.
  For additional information, visit the U.S. Department of State Investment Climate Statements.