Contracting in Belgium - A Short Guide to Tax and Social Security

[AgiliSAS]

Good or Bad advice? ... Or A Sales Pitch?

Thanks a lot, Sleek. Very helpful.

I spoke with a guy at CXC Global and he told me I really shouldn't go with setting up a UK Ltd company... that I should go through them as an umbrella company and they'd register me as self employed in Brussels.

Their fee would be 5% (min €400/month), for which, they'd:
- do the invoicing for me, passing the money on to my personal non-business account in the same currency within 24 hours;
- include the services of a local Belgian accountant (if I needed it - i.e. if I got extended and stayed there long enough) [the written quote actually states I'd need to reimburse them for this if I leave them within six months, which I will do];
- professional indemnity (up to €5m); and
- public liability (up to €5m) which is pretty useless to me

They said they also help set up private limited companies but I can't see any evidence of that on their website. I can't help feeling like I'm being given a sales pitch rather than advice.

I told the fella I didn't want to end up in the Belgian tax system at all... that I'd rather leave at the three month mark (or six?) and come back to the UK. His response was, "you can't choose which tax system to be in". I'm worried that his "solution" would mean that I'd have to pay Belgian taxes and Belgian social security or that I'd have to pay UK income tax on the entire 95% of what I get (unable to take dividends).

Any further thoughts on this would be very much welcome.

Also,if anyone here can recommend (or even just point me towards finding) an accountant who can deal with this international aspect of the situation, I'd be extremely grateful.

Thanks,
AgiliSAS

ps What do you think of "AgiliSAS" as a company name?

[sleek]

I spoke with a guy at CXC Global and he told me I really shouldn't go with setting up a UK Ltd company...

Of course they say that since otherwise they would not get any money from you

His response was, "you can't choose which tax system to be in".

You cannot choose but you can arrange your things properly to pay your taxes to UK up to 183 days. And if you do that, you do not need this Belgian company -> they won't get your money. That is why they are saying that.

I'm worried that his "solution" would mean that I'd have to pay Belgian taxes and Belgian social security or that I'd have to pay

Yes, that would mean it. Do not use Belgian company. You need to be sent employee from your home country!

Any further thoughts on this would be very much welcome.

If you are uncertain how taxation goes, you can always ask Belgian and UK tax offices. Belgian tax office was very helpful when I contacted them and they confirmed that I have no need to pay taxes to Belgium if I stay less than 183 days and work through Finnish company as sent employee to Belgium. I also contacted Finnish tax office and they confirmed it also. This is because double taxation treaty between Finland and Belgium. Would you believe tax office which is responsible collecting taxes or some private company which tries to maximize their income?

Of course UK <> Finland but I happened to read UK-Belgium tax treaty also when I researched this, it seemed to be quite similar. You can always read that treaty by yourself and also, it does not hurt to contact tax office for clarification.

Also,if anyone here can recommend (or even just point me towards finding) an accountant who can deal with this international aspect of the situation, I'd be extremely grateful.

Do not seek Belgian accountant, seek UK accountant as UK is your native country and you know how to deal with them... Belgians speak different native language and everything...

Ps. This center of economic interest etc. is another thing. It has nothing to do with these tax treatys and that could offer another way to avoid paying taxes to Belgium up to 6 months. But it takes lot's of paperwork, Belgian accountant and everything, I cannot recall details anymore... Had no need.

[sandyh2001in]

Of course they say that since otherwise they would not get any money from you

You cannot choose but you can arrange your things properly to pay your taxes to UK up to 183 days. And if you do that, you do not need this Belgian company -> they won't get your money. That is why they are saying that.

Yes, that would mean it. Do not use Belgian company. You need to be sent employee from your home country!

If you are uncertain how taxation goes, you can always ask Belgian and UK tax offices. Belgian tax office was very helpful when I contacted them and they confirmed that I have no need to pay taxes to Belgium if I stay less than 183 days and work through Finnish company as sent employee to Belgium. I also contacted Finnish tax office and they confirmed it also. This is because double taxation treaty between Finland and Belgium. Would you believe tax office which is responsible collecting taxes or some private company which tries to maximize their income?

Of course UK <> Finland but I happened to read UK-Belgium tax treaty also when I researched this, it seemed to be quite similar. You can always read that treaty by yourself and also, it does not hurt to contact tax office for clarification.

Do not seek Belgian accountant, seek UK accountant as UK is your native country and you know how to deal with them... Belgians speak different native language and everything...

Ps. This center of economic interest etc. is another thing. It has nothing to do with these tax treatys and that could offer another way to avoid paying taxes to Belgium up to 6 months. But it takes lot's of paperwork, Belgian accountant and everything, I cannot recall details anymore... Had no need.

Hello there

I have a question in relation to options available beyond 183 days given there is an offer of renewal of contract from the client.
I have a lucrative assignment in Belgium which Im midway of and a renewal is very likely. Im currently seconded to Bel via my Irish limited company and I have an Irish A1 cert to boot. Staying in serviced apartment in Belgium, so basically no roots in Belgium, no registration with Belgian tax or social security.

What are the options once 183 days expire and I am still interested to continue on. What can I do to regularize the situation ?

[sleek]

Staying in serviced apartment in Belgium, so basically no roots in Belgium, no registration with Belgian tax or social security.

Does not matter if you have no roots or anything in Belgium. If you stay long enough, you become tax resident.

What are the options once 183 days expire and I am still interested to continue on. What can I do to regularize the situation ?

Legal ways? None that I know. If others have ideas please tell, but really, how do you think it would be possible to live an breath in country all year around and yet somehow avoid paying taxes? Everybody would then pay taxes to Latvia, Lithuania etc.

I know that many people just work in country X and keep low profile and pay everything to their home country just like they would work there. Goes without saying that it is not legal way and I have no idea what are changes to get busted... Probably quite high, I would not risk it. There must be jobs in another countries? Just roam across Europe changing countries every 6 months...

[sleek]

You have been misinformed: travel days definitely do not count in Belgian law in respect of the 183 days. That used to also be the case in the UK but GB backtracked and specifically changed the law, that has not happened in Belgium hence travelling days do not count towards the 183 days there.

Boo2

Oh btw. forgot to ask Boo; what is source of this information, where could this be verified for sure?

My source was Belgian tax office official but as individual she or he could be wrong, of course.

[sandyh2001in]

Oh btw. forgot to ask Boo; what is source of this information, where could this be verified for sure?

My source was Belgian tax office official but as individual she or he could be wrong, of course.

I have the same doubt in my mind, which I would appreciate to be cleared if some sort of official information could be provided to corroborate this?

[BlasterBates]

You really need to see a reputable accountant who is familiar with contractors. International taxation is a nightmare. No-one here can give you definitive advice.

What you have to bear in mind is that you will become fully resident Belgium unless you can prove otherwise. They will be expecting you to declare all your Belgian income, and this is where it gets complicated, because you've declared the income from your first six months in Belgian as UK income. This is going to be controversial to say the least.

Anyway take some advice from a local Belgian accountant.

[Brussels Slumdog]

. They will be expecting you to declare all your Belgian income, and this is where it gets complicated, because you've declared the income from your first six months in Belgian as UK income. This is going to be controversial to say the least.
Anyway take some advice from a local Belgian accountant.

If you cannot prove that you were in the UK for the first six months or they can prove you were not in the UK then they will calculate Belgian tax on the amount.

[Hilfort Contracting Prof]

Contracting in Belgium

Dear Sir/Madam,

If you are going to work in Belgium for less than 183 days during the tax year you can work via your own Ltd without necessarily becoming tax liable in Belgium.

Very important is that you can prove that your center of living is in the UK and not in Belgium, so you should stay in a hotel/motel/B&B (don't rent an apartment). You will need to obtain an A1 from HMRC in order to avoud social security liabilities in Belgium and you need to register for Limosa.

However, if you do overstay 183 days (physical presence and not working days) than you can't avoid tax liability in Belgium.

I hope this helps. If you require more information you can send me a PM.

Kind regards,

Martijn Verheijen
Hilfort Contracting Professionals

Thanks a lot, Sleek. Very helpful.

I spoke with a guy at CXC Global and he told me I really shouldn't go with setting up a UK Ltd company... that I should go through them as an umbrella company and they'd register me as self employed in Brussels.

Their fee would be 5% (min €400/month), for which, they'd:
- do the invoicing for me, passing the money on to my personal non-business account in the same currency within 24 hours;
- include the services of a local Belgian accountant (if I needed it - i.e. if I got extended and stayed there long enough) [the written quote actually states I'd need to reimburse them for this if I leave them within six months, which I will do];
- professional indemnity (up to €5m); and
- public liability (up to €5m) which is pretty useless to me

They said they also help set up private limited companies but I can't see any evidence of that on their website. I can't help feeling like I'm being given a sales pitch rather than advice.

I told the fella I didn't want to end up in the Belgian tax system at all... that I'd rather leave at the three month mark (or six?) and come back to the UK. His response was, "you can't choose which tax system to be in". I'm worried that his "solution" would mean that I'd have to pay Belgian taxes and Belgian social security or that I'd have to pay UK income tax on the entire 95% of what I get (unable to take dividends).

Any further thoughts on this would be very much welcome.

Also,if anyone here can recommend (or even just point me towards finding) an accountant who can deal with this international aspect of the situation, I'd be extremely grateful.

Thanks,
AgiliSAS

ps What do you think of "AgiliSAS" as a company name?

[pran]

183 per yes but is this ongoing

i have read that this 183 day rule is for one year. But also the Belgium tax authorities look at an average of 90days in a 4 year period. Is this true?

thank you in advance