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

[bluepeter]

tax returns

Hi

Can anyone suggest an alternative to Bnb's and hotels to avoid commune registration and the tax return that follows.
Would a room in a shared house be sufficient, or what exactly qualifies?

thanks

[stek]

Hi

Can anyone suggest an alternative to Bnb's and hotels to avoid commune registration and the tax return that follows.
Would a room in a shared house be sufficient, or what exactly qualifies?

thanks

It's a legal requirement to register.

Freedom of movement does not mean freedom to break the law.

[bluepeter]

It's a legal requirement to register.

Freedom of movement does not mean freedom to break the law.

But bnbs and hotels are exempted from registration as they don't give you a contract. Are shared housing required to give you a contract?

[stek]

But bnbs and hotels are exempted from registration as they don't give you a contract. Are shared housing required to give you a contract?

I think under EU Directive 2004/38/EC when get get three months effectively as a visitor but after that you must be exercising a treaty right (by working, studying or self-sufficient) and then fall under local requirements for registering yourself. I know in Germany we had to do that, and I'm pretty certain it's the same for all EU states except UK/Eire.

From europa.eu site about Belgium;

You must register your residence within 3 months of arrival. You can do so at the town hall.

Inactive citizens (pensioners, self-sufficient persons) must provide proof of health insurance and sufficient resources.

You must carry your registration certificate at all times.

If you don't register your residence, you could incur a 200 euro fine

For more information, check with the town hall where you live.

I say 'think' a lot because it's a long time since I read the directive in anger!

[bluepeter]

I think under EU Directive 2004/38/EC when get get three months effectively as a visitor but after that you must be exercising a treaty right (by working, studying or self-sufficient) and then fall under local requirements for registering yourself. I know in Germany we had to do that, and I'm pretty certain it's the same for all EU states except UK/Eire.

From europa.eu site about Belgium;



I say 'think' a lot because it's a long time since I read the directive in anger!

I'm not against registering or even tax forms. I want to use a UK Ltd company for a 6 month contract and keep things as simple as possible. I would even avoid a salary of it helped.

Is a hotel definitely recommended in this case?

[stek]

I'm not against registering or even tax forms. I want to use a UK Ltd company for a 6 month contract and keep things as simple as possible. I would even avoid a salary of it helped.

Is a hotel definitely recommended in this case?

There are further issues there then, because you are a one man (UK) company and said company is operating 100% in Belgium, then that's where it will be taxed, unless you open a BEL branch and then you are in a world of pain accounting wise.

Forget the 183 day 'rule' and forget the fact that Starbucks do it, one man companies are an easy target for the tax authorities.

[bluepeter]

There are further issues there then, because you are a one man (UK) company and said company is operating 100% in Belgium, then that's where it will be taxed, unless you open a BEL branch and then you are in a world of pain accounting wise.

Forget the 183 day 'rule' and forget the fact that Starbucks do it, one man companies are an easy target for the tax authorities.

I thought that was the recommended route from what I've read from here, is everyone on here gambling that that tax authorities don't check them? If it's an umbrella company then, can someone recommend one. I've already started a contract here and need a plan.

Thanks

[stek]

I thought that was the recommended route from what I've read from here, is everyone on here gambling that that tax authorities don't check them? If it's an umbrella company then, can someone recommend one. I've already started a contract here and need a plan.

Thanks

Have you checked the LIMOSA thing?

https://www.socialsecurity.be/foreig...mosa/home.html

I wouldn't take a role in Belgium personally, unless you are very lucky and/or very astute you only realistically have the local payroll option and I think for that the income tax plus social tax rate is around 56% in Belgium.

[bluepeter]

Have you checked the LIMOSA thing?

https://www.socialsecurity.be/foreig...mosa/home.html

I wouldn't take a role in Belgium personally, unless you are very lucky and/or very astute you only realistically have the local payroll option and I think for that the income tax plus social tax rate is around 56% in Belgium.

I've started the contract already and don't think the umbrella solution offered by the agency is going to work.

Since the local payroll rate is way too high for me, I may just have to quit if that's the only option.

[m0n1k3r]

I've started the contract already and don't think the umbrella solution offered by the agency is going to work.

Since the local payroll rate is way too high for me, I may just have to quit if that's the only option.

If you are not a director of the company but instead an ordinary employee so that it is managed and controlled from the UK while you are in Belgium, then you would be able to use the EU rules for posted workers. It doesn't work, though, if the location of management and control of the company moves to where you are.

Hotel is the only reasonable option. If you rent a house or a flat, that would in most cases generate a physical establishment, meaning that your company would have to register as a foreign branch in Belgium and maintain a separate bookkeeping for the branch (and bank account).

Alternatively, you could register as self employed in Belgium.