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

[farout117]

When I was in belgium they had 50% income tax as soon as you earned 1 Euro. On top of that there is 10% Social Tax and another 10% for the Employer. So you will pay 70% tax.

I asked a belgian how he lives and he said, you dont actually pay the tax. The taxman comes to visit on his own, you have a cognac, and he decides how much you must pay.

I worked 3 years in belgium on a good rate and came back with 5000 GBP. All your expenses are chargable but it is still not worth it.

Belgium was a nightmare.

I know what you mean contractor, and I am in the same situation at the moment, leaving at the end of the year after 3 years working here. Not worth it at all. Can I ask you, did you liquidate your BVBA, and if so how much did it cost you? My accountant quoted me 5K EUR and told me at least 6 months process to close. Am I being taken for a ride or is this normal?

[Joe Black]

I know what you mean contractor, and I am in the same situation at the moment, leaving at the end of the year after 3 years working here. Not worth it at all. Can I ask you, did you liquidate your BVBA, and if so how much did it cost you? My accountant quoted me 5K EUR and told me at least 6 months process to close. Am I being taken for a ride or is this normal?

Had a similar quote from my accountant €4-6K, and more than a few months (previously up to a year, but now a maximum time for each person in the chain), and read similar on Flemish sites, so could be right.

Currently looking into it myself to see how many pounds of flesh they're going to ask for, 'liquidation' taxes and all that...

PS: would be nice to see such items and various other posts on this thread consolidated into nodric's original overview, also because some parts need correcting/filling in.

[farout117]

Had a similar quote from my accountant €4-6K, and more than a few months (previously up to a year, but now a maximum time for each person in the chain), and read similar on Flemish sites, so could be right.

Currently looking into it myself to see how many pounds of flesh they're going to ask for, 'liquidation' taxes and all that...

PS: would be nice to see such items and various other posts on this thread consolidated into nodric's original overview, also because some parts need correcting/filling in.

The problem I see here in Belgium is that there seems to be nothing written in stone. There is no guidelines on the cost of liquidation as far as I know, and it seems that the accountant can just quote his price. What is also bugging me is that my accountant cannot give me an estimate on the time it will take, he told me not more than 6 months. What I also found here is that there are no helpful resources like this forum to guide foreign contractors, that I know of at least. Can't wait to get out of this place to tell you the truth, and I recommend everyone who is looking to work in Belgium to go through an umbrella, less stress for sure.

[cojak]

Had a similar quote from my accountant €4-6K, and more than a few months (previously up to a year, but now a maximum time for each person in the chain), and read similar on Flemish sites, so could be right.

Currently looking into it myself to see how many pounds of flesh they're going to ask for, 'liquidation' taxes and all that...

PS: would be nice to see such items and various other posts on this thread consolidated into nodric's original overview, also because some parts need correcting/filling in.

If you want to do that Joe, I'll add it to Nodric's OP.

[Joe Black]

If you want to do that Joe, I'll add it to Nodric's OP.

I see you're still here Cojak. It's been a while...

It certainly would be helpful to others if the OPs from Nordric could be consolidated/updated etc. It's a far better guide than almost any other, just some things I feel need adding/correcting...though not sure how the latter can be done (e.g. the section on qualifications needs replacing almost completely), unless his text is struke through and then something added underneath? - what's needed is a Wiki!

The problem I see here in Belgium is that there seems to be nothing written in stone. There is no guidelines on the cost of liquidation as far as I know, and it seems that the accountant can just quote his price. What is also bugging me is that my accountant cannot give me an estimate on the time it will take, he told me not more than 6 months. What I also found here is that there are no helpful resources like this forum to guide foreign contractors, that I know of at least. Can't wait to get out of this place to tell you the truth, and I recommend everyone who is looking to work in Belgium to go through an umbrella, less stress for sure.

Well, the costs of accountants/lawyers are always bound to vary, just like with us. As for how long it takes, this previously could be never-ending, but now there is a two month or so limit for each step in the chain, hence your accountant's comment "not more than 6 months".

[farout117]

Well, the costs of accountants/lawyers are always bound to vary, just like with us. As for how long it takes, this previously could be never-ending, but now there is a two month or so limit for each step in the chain, hence your accountant's comment "not more than 6 months".

True that, but when compared to the UK, I think they are quite pricey over here. Oh so you can confirm that it will not take more than 6 months? Well that is a piece of mind at least I know when everything will be finished. I was thinking that he said "not more than 6 months" because I pressed him to give me a date. Are there any websites/links I can check these things out Joe Black? Did not manage to find lots of help online

[Joe Black]

True that, but when compared to the UK, I think they are quite pricey over here. Oh so you can confirm that it will not take more than 6 months? Well that is a piece of mind at least I know when everything will be finished. I was thinking that he said "not more than 6 months" because I pressed him to give me a date. Are there any websites/links I can check these things out Joe Black? Did not manage to find lots of help online

Ok, seems I mixed up the different types of liquidation, voluntary/involuntary and the time limits are more for the latter.

There might be some good/better news though, as from what I've read so far the law changes made earlier this year should make the 'voluntary' liquidation even quicker and cheaper, but I'm going to have to read quite a bit more before I put any question back to my accountant.

Websites? Well, if you speak French/Dutch there are, plus quite a few forums? If you don't speak either of those languages then of course you can always go the Bing/Google translate way, though sometimes they make big key misktakes.

I use indicator.be quite often to get a general overview, then use Google to find any other sites to confirm if they're correct. Here's a starting point if you wish to take the leap: 'vennootschap+vereffening+site:be', and this you might find interesting.

[farout117]

further questions on liquidation

So last Friday I met my Belgian accountant, and basically I am going to go through the liquidation. He told me it will take at least 6 months. However, he said that I cannot unregister from the commune, even if I am leaving Belgium, since the director needs to still be registered in Belgium to go through with the liquidation. Is this normal? I was of the idea that I can unregister and become a non-resident Director, since I will not be working here anymore. If I keep myself registered, I still have to pay social security.

He also mentioned that I can transfer the social security funds I have accumulated here to a pension fund of my choice abroad.

Any experience or advice from someone who has any experience of liquidating a co here in Belgium would be very much appreciated.

[Joe Black]

Well, I was hoping to post some more info here by now, but having pushed things back for the moment I also still need to find out a bit more myself.

With to the points you raised though, the little I know is as follows:

• You can of course unregister whenever you want. What this involves, and whether the police come round to check you've gone, as they mostly do when you register...don’t know.
  
• As far as I’m aware Belgium doesn’t allow non-resident directors unless there is someone else here to manage things on a day to day basis who has the required ‘basic business knowledge’.
• If you unregister anyway, does that affect the liquidation process? I would have thought it shouldn’t, given that a notary is normally appointed (hence much of the cost) to deal with most of it.
  
• With regard to social security, from everything I’ve read (and according to my accountant as well), this is dependent on you still being registered with the KBO/Banque-Carrefour des Entreprises as an independent (e.g. director), and generally your mutualité/mutualiteit will keep on billing you, based on what you earned 3 years ago, until you can show otherwise, e.g. publication in the staatsblad/gazette. What they will do if you simply unregister, and just tell them you don't live here anymore, well...

[farout117]

Well, I was hoping to post some more info here by now, but having pushed things back for the moment I also still need to find out a bit more myself.

With to the points you raised though, the little I know is as follows:

• You can of course unregister whenever you want. What this involves, and whether the police come round to check you've gone, as they mostly do when you register...don’t know.
  
• As far as I’m aware Belgium doesn’t allow non-resident directors unless there is someone else here to manage things on a day to day basis who has the required ‘basic business knowledge’.
• If you unregister anyway, does that affect the liquidation process? I would have thought it shouldn’t, given that a notary is normally appointed (hence much of the cost) to deal with most of it.
  
• With regard to social security, from everything I’ve read (and according to my accountant as well), this is dependent on you still being registered with the KBO/Banque-Carrefour des Entreprises as an independent (e.g. director), and generally your mutualité/mutualiteit will keep on billing you, based on what you earned 3 years ago, until you can show otherwise, e.g. publication in the staatsblad/gazette. What they will do if you simply unregister, and just tell them you don't live here anymore, well...

Hey Joe,

"If you unregister anyway, does that affect the liquidation process? I would have thought it shouldn’t, given that a notary is normally appointed (hence much of the cost) to deal with most of it."

According to my accountant it does, because the company has to have a director even during the liquidation.

"What they will do if you simply unregister, and just tell them you don't live here anymore, well..."

This is the part I cannot understand the most. So basically, as a Director, I am not getting any salary from the company, but will eventually get the profits in dividends. So as far as I can think of, if I am not getting a salary, I should not pay social security right? However according to the accountant, I still have to pay the social security as I am still registered in Belgium as the director of ABC SPRL, and I will continue paying it until I de-register, which has to happen after the full liquidation process, since I cannot leave the company without a director.

I have to wait and see unfortunately cause there seems to be nothing made in stone here, very burocratic and tedious process.