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

[Brussels Slumdog]

Working Full time in Belgium then use SPRL

Hi all,

I am considering setting myself up as an SPRL and working directly for my current employers. Is this really the most tax efficient way of working? I am pretty much going to be here until I retire!

?

If You live in Belgium and all your future revenue will be Belgian then you need an SPRL.
I live in belgium and for the last 3 years I have had 0 Belgian
revenue and 100% foreign revenue. I am not 100% French and Dutch speaking so I don't even apply for contracts in Belgium
This means that I don't need a SPRL

[Ginolard]

If You live in Belgium and all your future revenue will be Belgian then you need an SPRL.
I live in belgium and for the last 3 years I have had 0 Belgian
revenue and 100% foreign revenue. I am not 100% French and Dutch speaking so I don't even apply for contracts in Belgium
This means that I don't need a SPRL

My accountant has actually recommended a GCV instead of an SPRL. I'll meet with him this week to discuss it all.

[xhak]

Hi,

I'm being offered a gig in Belgium and I'm considering if its worth it... the daily rate is nice, but belgium taxes aren't as nice...

I'm French, but currently resident in the UK (for the past 5 years).

The job would be for around 1.5-2y, and I'm not much into going back and forth every week any more, so I suppose I'd like to move there with my partner.
I suppose that with that in mind, all the UK based Ltd schemes or even (evil) umbrella schemes are not possible as I would not be a UK resident any more.
Note: the company I would have the contract with (my client) would be French, if that matters. This company is then hired by the Belgium company to do work there onsite.

So is my only solution to work as an independent in Belgium 100% under Belgium taxes and Social Security?
I suppose that the best for taxes would be to have my own company there? Or would my situation would be simple enough for a local umbrella company without any dodgy practices?
If I am to setup my own company, what would you recommend? Knowning that after the ~2y I would either liquidate it or leave it as a zombie shell.

Now I understand there is taxes on revenue (pretty clear), local taxes (~7%), but what are the rates for social security if you are self employed? Couldn't find that.

For the overall rate of taxation, I found this nice infography (in french tho ): L'Echo: Salaires

Can anyone confirm it is accurate for the "Chef d'entreprise independant" (director of own company) at 125k? (ie basically they tax you 56% and keep 44%; when without kids/wife). It seems to be only 8%pts less than the UK, and with expenses, they say its similar.... so it doesn't seem thaaaaaaat bad... but my rough calculation came a bit lower at around 40% (maybe i was a bit conservative on what I could expand). Could anyone confirm/infirm these numbers?

Oh and where is nodric?
Great stuff in this thread!

[vladone]

using an intermediate company

... Client Belgium -> company Eastern Europe -> me, registered as freelancer(independent) in BE
...

You should be safe if the ownership / management of the EE Co. is a true reflection of the actual situation. But if you do this in order to disguise the true position wrt ownership of the EE Co. then that is tax evasion / fraud in Belgium.

I have discussed with a tax attorney. From his experience it is very difficult to avoid paying taxes in Belgium using the previous schema.The risk is too big.

[Sergeant Murphys Cosh]

I have discussed with a tax attorney. From his experience it is very difficult to avoid paying taxes in Belgium using the previous schema. The risk is too high.

It wouldn't matter so much if the tax-man wasn't so greedy & taxes weren't so sky-high in Belgium, but why do they have to stick them up at 50% ?!?

[vladone]

Limosa and rent apartament

... if you rent a flat you will need to register at the commune, .... Renting a place makes you a resident.

Can somebody confirm this? As I know renting an apartment does not make me a resident. The immo lawyer told me something like if the apartment is not my main residence i have to pay some extra taxes because is considered a second residence.

... Limosa will have the contract dates and so they will know that the 183 day rule applies and should not send you a tax form. If they do then ...

Have anybody ever got a paper (tax form or anything else) from Limosa?

I wouldn't worry about Limosa though. ... All it says is that you are sending someone to work in Belgium. It doesn't mean that you/they are automatically liable for local taxes (since how you are taxed depends on your exact circumstances), but it was designed to prevent exploitation of manual workers from ...

... As far as I know it from some experienced people, there is no connection between what the Belgian taxman does, and the limosa registration.

wogewwabbit, I can confirm this. Hope we did not discuss with the same tax attorney .

[Brussels Slumdog]

Social Security Rates

Hi,

I'm being offered a gig in Belgium and I'm considering if its worth it... the daily rate is nice, but belgium taxes aren't as nice...

I'm French, but currently resident in the UK (for the past 5 years).

The job would be for around 1.5-2y, and I'm not much into going back and forth every week any more, so I suppose I'd like to move there with my partner.
INow I understand there is taxes on revenue (pretty clear), local taxes (~7%), but what are the rates for social security if you are self employed? Couldn't find that.

Self Employed Social Security Tax is about 30%

If your contract is for 2 years and as you speak French then its worth becoming self employed. Once your contract finishes you should de-register as self employed to avoid future social security bills based on prior years
You will need to do some research on how many companies employ French or English only speakers in Belgium using your skill otherwise you will find yourself on the bench if you cannot speak Dutch

[Boo]

It wouldn't matter so much if the tax-man wasn't so greedy & taxes weren't so sky-high in Belgium, but why do they have to stick them up at 50% ?!?

Tax rates are high in Belgium because tax avoidance is rife and there are many loopholes and exemptions...

Boo

[Sergeant Murphys Cosh]

Tax rates are high in Belgium because tax avoidance is rife and there are many loopholes and exemptions...

But people use tax avoidance BECAUSE the tax rates are so high.

Catch 22.

[wogewwabbit]

Hi Guys,

Could someone here point me to a reliable Belgian accountant, who could give me advice on legally doing business in Belgium in the form of a UK ltd? It would be pretty urgent.

Cheers

Hi,

First of all, Happy New Year to everyone on here!

I have to ask the same question again, as it is still valid: does any of you know an English speaking accountant in Belgium?