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

[Magic]

600? That's wayyyy above the rates I'm seeing for Belgium, and sounds like it has the tax risk priced in. Limosa is demanded by the Belgian client apparently, the agent is just the messenger for the demand.



In the EU? Doesn't really help. What helps is if you have no money.
I remember being pulled in by the Germans, for not declaring bank interest in other EU accounts (EU Savings Directive means they get a list of accounts and interest paid directly from your EU bank) from that they can work out how much money you have and if you're worth squeezing.
UK Ltd companies make it worse because it's there in the accounts online at companies house website. If you have lots, it's worth their time chasing you and I have a lot of reserve in the company.

With some countries desperate for tax, better to cross every t and dot every i. But still 600? Maybe just 'forget' to file the Limosa if its only a few months for that kind of money.

In fact it is the same client as before and I was there from mid 2008 to early 2009 and my rate at the time was 850 Euros (good for the time).

The client never asked for my Limosa registration then.

Guess I could pay myself a token salary in Belgium but this will turn into a nightmare to reconcile, money here, money there.

Anyone know if you approach an accountant in Belgium if what you discuss is confidential?

[Zinhem]

Guess I could pay myself a token salary in Belgium but this will turn into a nightmare to reconcile, money here, money there.

Not an accountant, but:
Resign from your company, leave it in the control of your wife for the duration. Your company pays a token salary while you're in Belgium. DO NOT STAY MORE THAN 183 days under any circumstance.

That way they can't squeeze your company for money, and they might try to find you taxable in BE, but the sums are too small for them to be worth trying.

None of this is possible for me, and having talked to various friends who've worked in Belgium and come back with outstanding bills, I won't become taxable in Belgium.

[Magic]

How are the 183 days calculated?

Do they count days you are travelling or nights you spend there?

Just did a bit of research and it works out that I could commute from my home country each day which not suprisingly works out cheaper than staying at hotels there.

Okay this is maybe taking things to extremes but it is possible, I would have to get up at 05:00 and would be back at 23:00.

Of course I need not do this every day, it could be every other day or mainly during the summer, however I am tempted due to the good travel connections.

[Brussels Slumdog]

Changed rule

How are the 183 days calculated?

Do they count days you are travelling or nights you spend there?

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I believe that the rules have been changed from a calendar year to any 183 day period so a contract from June to June you would be classified resident.

[Magic]

I believe that the rules have been changed from a calendar year to any 183 day period so a contract from June to June you would be classified resident.

Yes, that is correct, it is in any 12 month period.

I am going to check with an International tax lawyer as I am outside the EU and it looks as if the laws here mean I would be operating under a branch of my company whilst in Belgium. Also I only need to be present in my country for 90 days for me to be tax resident here.

Just heard from the pimp that it looks close to getting the 600 Euros a day, stringing it out letting me think he is working hard for me. Little does he know my contact there already emailed me to tell me the deal is done.

So bar the pimp going tulip on me looks like I have a gig.

[nodric]

How are the 183 days calculated?

Do they count days you are travelling or nights you spend there?

Just did a bit of research and it works out that I could commute from my home country each day which not suprisingly works out cheaper than staying at hotels there.

Okay this is maybe taking things to extremes but it is possible, I would have to get up at 05:00 and would be back at 23:00.

Of course I need not do this every day, it could be every other day or mainly during the summer, however I am tempted due to the good travel connections.

Magic, in response to this, and your other posts.

If you avoid LIMOSA, then you won’t be worrying about 183 days! i.e. if you are not going to tell them you’re here, you aren’t going to be accounting for your movements either. P.S. Schengen makes this easy

If however, you do get caught up with LIMOSA, you count the days spent in the country. Travelling days do not count. Used to be the same in the UK, but you are only allowed 1 travelling day now, but still 2 here. i.e. your outward and inward days.

Timesheets are the way to prove the days spent, and if possible some way of proving you’re home/travelling on the other days. Take dated photos outside a local landmark Of course if you use public transport (planes/trains) tickets suffice.

If you do get into LIMOSA you must have a local accountant, unless your understanding of Belgian tax and social security is excellent, and your local language skills are fluent. You’ll also need skills in double taxation

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[Magic]

Magic, in response to this, and your other posts.

If you avoid LIMOSA, then you won’t be worrying about 183 days! i.e. if you are not going to tell them you’re here, you aren’t going to be accounting for your movements either. P.S. Schengen makes this easy

If however, you do get caught up with LIMOSA, you count the days spent in the country. Travelling days do not count. Used to be the same in the UK, but you are only allowed 1 travelling day now, but still 2 here. i.e. your outward and inward days.

Timesheets are the way to prove the days spent, and if possible some way of proving you’re home/travelling on the other days. Take dated photos outside a local landmark Of course if you use public transport (planes/trains) tickets suffice.

If you do get into LIMOSA you must have a local accountant, unless your understanding of Belgian tax and social security is excellent, and your local language skills are fluent. You’ll also need skills in double taxation

.

Hi Nordic,

Thanks for the reply, so from what you say a normal 5 day working is counted as 3 days in Belgium, so even if I was to work 52 weeks (156 days) then I would still be under the 180 day rule.

Just hope I am not asked for my LIMOSA registration but will cross that bridge if it happens. Busy getting my E101 sorted out at the moment.

I am still going to get advice from an international taxation lawyer here to try and get the complete understanding.

[nodric]

Current contract on offer is 600 Euros so not that good rate.

600? That's wayyyy above the rates I'm seeing for Belgium, and sounds like it has the tax risk priced in. Limosa is demanded by the Belgian client apparently, the agent is just the messenger for the demand.

Not always the best idea to have open rate discussions but since the cat is out of the bag, not much benefit keeping mum anymore

Rate wise Belgium is improving, and from a lot of the UK posts I read, are much better for some development roles. Remember here we work 37.5hrs and get paid overtime However, overtime restrictions have been in force in most places for the last 2 years now, but are starting to ease.

Rates range from €450 pd and the low end, through to €800 at the very high end. At the low end there really is no point coming here! Leave it to the locals.

Average rates I’m seeing hover around the €600-€700 pd. This is £520 to £610 GBP a day at current rates, but the Euro has been hammered in recent weeks due to the stupid Greek government. It will recover and be worth more soon enough

Good developers (.Net and Java) can expect to see the €500-€550 mark, while PMs are seeing the €650-€750 a day level. Still a big demand for Mainframe skills, Cobol, CICS and JCL still used a lot!

Testers and Designers can expect similar to a developer.

Remember there will always be crap rates, as well as stunning rates, but the average is getting better.

SAP huge need always here. Oracle also in demand, especially Apps DBAs. If you are skilled in Ajax and similar, and have Websphere or other portal skills you’ll also find work.

Open source web based development and portal tools are also finding some footing here, but deployments are still limited.

.NET and associated evils are also widely used, especially by the banks.

Solaris and AIX are major platforms for the banks, and Citirx has a large installed base as well.

Of course some pimps and some ClientCos are still taking the tulip, and trying to get you for free, but that will slow down a lot more as there are some major hiring plans in progress by the big banks here, and as demand increases, so will the rates

Try and use a UK pimp to avoid local VAT, unless you intend to use a ManCo or your own Non Belgian LTD structure. Local pimps will demand LIMOSA, and some even proof of residency.

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[nodric]

Hi Nordic,

Thanks for the reply, so from what you say a normal 5 day working is counted as 3 days in Belgium, so even if I was to work 52 weeks (156 days) then I would still be under the 180 day rule.

Technically speaking, yes! However, there are rules about average number of days in any 'n' period. In the UK it's an average of 90 days per year over a 4 year period. In other words you could not swing 183 days per year every year.

e.g. You work Year 1 and 2 and consume 183 days per year. This already takes you over the maximum in any 4 year period, i.e. 360 days.

However, for a one off gig, you should get away with it. Of course the local Hector may not be as convinced, hence why you route of seeking professional advice is a wise one. Something I constantly recommended.

I would be very interested in the advice the tax lawyer gives. Feel free to bring it back here for the benefit of all

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[Magic]

Technically speaking, yes! However, there are rules about average number of days in any 'n' period. In the UK it's an average of 90 days per year over a 4 year period. In other words you could not swing 183 days per year every year.

e.g. You work Year 1 and 2 and consume 183 days per year. This already takes you over the maximum in any 4 year period, i.e. 360 days.

However, for a one off gig, you should get away with it. Of course the local Hector may not be as convinced, hence why you route of seeking professional advice is a wise one. Something I constantly recommended.

I would be very interested in the advice the tax lawyer gives. Feel free to bring it back here for the benefit of all

.

Hi Nordic,

Will post an update once I have been to see the tax specialist, currently they are at lunch but hoping I can get an appoinment in the next couple of days.