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

[tomcruise]

and keep in mind that Limosa mandatory filing has withdrawn last January due to EU law (see same Limosa site):now it is not mandatory to sign up for contractors

[sleek]

if any inspection, you can demonstrate you are less 183 days in Belgium (travel days does not count)

Let's get this straight - travel days DO count. I verified this from Belgian tax office personally. It is sufficient if you stay in Belgium for one second, that will be one day in Belgium tax-wise.

This little fact caused me to reject job offer which would have paid very well. Instead I had to return to my home country unemployed, but that is waaaaaay better than paying any dime to Belgium.

Btw. I was also offered contract that they will pay my salary from Cyprus and "no one knows you are here". Indeed no one would have known since I never registered, never opened Belgian bank account and virtually I was invisible. However, I am not stupid enough to think, that few tax inspections would not bring up my name and caused few questions of my whereabouts.

Of course they still may ask that why I did not register even though records shows that I worked for Belgian company more than 3 months, but I think it is minor inconvenience, perhaps little fine if anything at all? But dodging taxes, oh boy it will be different thing. Little is not enough.

[tomcruise]

Let's get this straight - travel days DO count. I verified this from Belgian tax office personally. It is sufficient if you stay in Belgium for one second, that will be one day in Belgium tax-wise.

This little fact caused me to reject job offer which would have paid very well. Instead I had to return to my home country unemployed, but that is waaaaaay better than paying any dime to Belgium.

Btw. I was also offered contract that they will pay my salary from Cyprus and "no one knows you are here". Indeed no one would have known since I never registered, never opened Belgian bank account and virtually I was invisible. However, I am not stupid enough to think, that few tax inspections would not bring up my name and caused few questions of my whereabouts.

Of course they still may ask that why I did not register even though records shows that I worked for Belgian company more than 3 months, but I think it is minor inconvenience, perhaps little fine if anything at all? But dodging taxes, oh boy it will be different thing. Little is not enough.

take a look to Limosa site:new european law makes not mandatory for selfemployed to be registered there

[tomcruise]

also i see in this forum lot of people interested in providing his taxation advice services or umbrella's manager trying to create the necessity of invoincing through their 'compliant' schemes: all fear,all useless.get them away

[sagvan007]

UPDATE on Limose

It seems that requirement to register to Limosa is back from 1st of July 2013

New Limosa : from 1 July 2013! - lexgo.be

Can someone explain implications of lower requirements for self employed?

- National identity number in the country of origin;
- The kind of services provided under the secondment (no longer any obligation to give a description of the work to be carried out);
- VAT number in the country or origin or enterprise registration number;
- Identity particulars concerning the representative making the notification (which may be a third party mandatory).

I still do not understand what happens once you register with Limosa in terms of social security and income taxes? Do I have to pay taxes and social security if I work as self employed in Belgium and another country? I do not spend more than 183 days in Belgium even if I count days of traveling.

[Boo]

Let's get this straight - travel days DO count. I verified this from Belgian tax office personally. It is sufficient if you stay in Belgium for one second, that will be one day in Belgium tax-wise.

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

[Boo]

I still do not understand what happens once you register with Limosa in terms of social security and income taxes?

AFAIK, nothing. You will only receive a tax return in Belgium if you are resident there and have registered with the local commune. AIUI, if you stay in a hotel or B&B then you don't need to register at the local commune and won't receive a tax return. I did that and didn't receive a Belgian tax return despite being registered on LIMOSA for 1 year.

IDo I have to pay taxes and social security if I work as self employed in Belgium and another country? I do not spend more than 183 days in Belgium even if I count days of traveling.

Under those circumstances it all hinges on whether you are resident in Belgium. If you rent a flat there or own a house etc then you are likely to be treated as tax/resident there. If you can show that your roots (family, national health insurance, property ownership, car registration etc etc) are all in another country then you should be alright.

Boo2

[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

Ok, if you are 100% sure ten yes, I was misinformed by tax office itself. They specifically said to me that it is enough if you step one foot to Belgian territory, it is one day towards 183 day limit. I have E-mail from them saying this...

Because of that, I left Belgium already but oh well, at least I can be with my family I may try to get my "old contract back" next year then...

[AgiliSAS]

Two Month Contract in Belgium (First Time)

Hi all,

I've just accepted a two month contract in Brussels - it's my first one; I've just left my permanent job for it.

It starts on 4th November so I was looking around and found this thread which has really worried me.

I have no company (yet), was wondering what to do - whether to work as a sole trader or have a UK Limited company setup. There's the possibility of extension beyond the two months but it's not guaranteed (I'll find out at the start of December). And I may not find contract work here in the UK after the two months.

Getting tied up with Belgian tax and social security has really worried me. I'm only going to be on 380 euros a day, so does anyone have any advice?

In particular, I'm worried that it will be difficult (or impossible) to show that my economic centre is in the UK.

For some reason, I'm not allowed access to my "inbox", so I can't see PMs or PM anyone.

Thank you,
Chris

ps Please note:
1. I have a university degree;
2. I want to rent a flat in Brussels (not a sublet);
3. I'm considering taking my car (since it's cheap on le shuttle and will mean I can take my computer and bicycle);

[sleek]

worried me. I'm only going to be on 380 euros a day, so does anyone have any advice?

Work through UK company and if it is under 6 months you can get away with paying taxes to UK. Leave Belgium before 6 months or you are screwed with the taxes. Get A1/E101 certificate from UK and you can get away with paying social security to UK. No need to pay anything to Belgium if you play your cards right. Read UK - Belgium tax treaty so you understand all the conditions (UK company you use most likely cannot have any side branches in Belgium or anything like that).

If you stay under 3 months, no need to register yourself nor you are required to fill in tax return (if you are not tax responsible... if you are then you are required to do so even if they do not ask) so so no troubles with tax office. If you register yourself, you will automatically receive tax return next year and it's your duty to prove that you do not need to pay taxes and that will be major hassle.

If you stay over 3 months but under 6 months, legally you need to register. That will give some major pain to you. Personally I just would not register. Yes, it's illegal to be there without registering, but...

2. I want to rent a flat in Brussels (not a sublet);

Do you have any idea how much pain this is? My advice: Go to apartment hotel. You can get nice one bedroom apartment for EUR 1000/month.

Do not stay more than 6 months...