Record number of tech companies leaving Brussels

While a record number of IT companies are leaving the Belgian capital, the loss is offset by the continuous creation of digital start-ups, new figures have revealed.

An estimated 166 tech companies left Brussels in 2023 – almost four times more than a decade earlier when just 45 packed up and moved, according to figures from the Belgian statistical office Statbel. But there has also been a 27.6% increase in new start-ups over the same period.

Technology federation Agoria’s Brieuc Janssens sees the cycle as cause for concern. “[It’s] a worrying trend that urgently needs to stop,” Janssens said.

“We do see many digital companies being founded and our ICT companies remain a promising growth engine, but too many of them leave Brussels as soon as they start to grow. We need a strong and diverse Brussels ICT ecosystem with small, medium and large companies.”

These exiting tech companies, which offer digital solutions for all kinds of activities - including health, education and cybersecurity - often choose to continue their growth in Flanders or Wallonia.

Janssens said the reasons that companies cite are always the same: taxation, mobility, challenges in personnel recruitment, and security or safety concerns.

“It’s such a pity that we see so many promising companies turn their backs on Brussels, and those who are growing fast and creating a lot of jobs and added value – they’re each missed opportunities for our city,” said Janssens.

“We need to attract existing companies, help start-ups and scale-ups grow and improve the business environment. I want to work with the Brussels government to ensure that digital talent not only starts here, but also wants to stay here.”

Taxes are an especially big challenge for the companies, Janssens said, as in Brussels they vary from one municipality to another. The difficulty of forming a government over the last eight months also adds to uncertainty.

“We know that taxation, particularly on enterprises, is very high in Brussels, but even more than the tax burden, it's their unpredictability that’s discouraging,” said Arnaud Texier, director of sector support for hub.brussels.

“Often, these young companies don't go far, to Diegem or Walloon Brabant, where they aren't seen as a cash cow for municipalities in serious financial difficulty.

"They’re often born in Brussels, where the soil is fertile for start-ups. We support them at the start-up stage, but when they grow, we’re unable to retain them. It's a bit like having children but not building creches or schools.”

The ICT sector in Brussels has a turnover of €18 billion and 28,000 jobs, but workers increasingly look for greener pastures in Flanders and Wallonia where they enjoy a lower cost of living.

The same is true for companies looking for more accessible land on which to build headquarters and greater financial support from the government.

It is also typically easier for tech companies to move headquarters than other types of companies, as it is often simply a matter of “packing up a few computers”, according to Texier.