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

[Brussels Slumdog]

are tax resident

[Vafis]

where i need to pay taxes UK , Belgium or both?

I had a contact for two months Ausust and Sept 2016 with the following situation:

1.My UK Ltd company invoiced an agency UK company ( and not Belgium company)
2. Limosa declaration refers my UK and Belgium company
3. I started the process for registration in town hall but never competed. I visit police
the first days but after two months i visited policed and inform them than i need to gave up country
(before the final appointment of Town Hall in order to get the id card)

It is important to mention again that never i invoice Belgium company
but in Limosa there is Belgium company
Any idea please?
Thanks in advance

Vafis

[MPwannadecentincome]

Wow - more than 5 hours to read this thread... and very confused at the end particularly as some of the information has changed since the first posting in 2009.

I am about to negotiate on an offer for a gig in Brussels so will now try to find a local Belgian accountant familiar with UK contractors invoicing through a UK agency, to clarify on the points below:

* I will be flying out Monday Morning returning Friday evening every week, perhaps working a shorter week if WFH is allowed on the odd day - so need to confirm whether the travel days count or not (have seen the debate in this thread!) so as to see how long I can work until 183 days is up.
* Seems to be debate on this thread about whether Limosa registration is needed at first or not given the rules changed in 2013
* Seems to be debate on this thread about whether a stay longer than 3 months is even a good idea
* Will be staying in airbnb apartments for 4 nights at a time or cheap hotels so no need to have local bank account etc, so can show that no intention of moving economic base to Belgium, however....
* Retaining UK as economic base could be hard - I am divorced, single director/sole shareholder of my Ltd Co, do not own any property in the UK (the ex got the equity when the house was sold), don't own a car, though the kids go to school in the UK and parents are here
* If BTA taxes have to be paid then need to understand what expenses are allowed
* If dual taxation treaty interpretation needs agreement between both tax authorities for my own circumstances that is going to take time and if BTA takes precedence then 55%-65% tax deduction isn't worth my while, I have high maintenance to pay to the ex and the kids and rent to pay in the UK and soon university living fees for my eldest.

Reading this thread has made me slightly uncomfortable about accepting any offer but daily rate hasn't been agreed yet so if I can get a high enough rate then even paying the 55%-65% might be worth it. Boo mentioned an annualised rate of euros 240K but I won't get anywhere near that.

Other options for me are:

1. I could just take the gig and keep looking for another one hopefully something else will turn up within 3 months. This will p**s the client off and I don't like to leave gigs unfinished particularly in the industry I work in where word gets around quickly and people move around so path can cross again.
2. Stay on the bench, though not a good time to be on the bench right now as all the contractors leaving the public sector are going to flood the market :-(
3. Going back to Public Sector and working inside IR35 (would still net more than going to Brussels and paying Belgian tax!)

Ho hum let's see what the Belgian accountant says - any recommendations?

[MPwannadecentincome]

Ho hum let's see what the Belgian accountant says - any recommendations?

Sorry reposting again... if anyone can recommend a Belgian accountant then please PM me. I have had conflicting advice from differing parties who of course have their own vested interests and I need to clarify what the real position is with a real expert. At the moment I am googling "tax accountant brussels" and emailing them - I tried calling some but the people answering the phone didn't want to converse in English!

[northernladyuk]

Handy tool here for EU / EEA countries:

Income taxes abroad - United Kingdom - Your Europe

[Ruairi]

Need some advice. I've been a contractor for 10+ years but never in Belgium.

I've been offered a contract as a senior developer at 500€ a day (10k a month). After seeing this thread I think I'm being "low balled" by the agent. I've got two options:
1. Walk away from the offer
2. Negotiate a higher rate

Anyone have a rough idea what's the typical daily rates for a senior developer (or software architect) at a big bank in Belgium?

[Brussels Slumdog]

Need some advice. I've been a contractor for 10+ years but never in Belgium.

I've been offered a contract as a senior developer at 500€ a day (10k a month). After seeing this thread I think I'm being "low balled" by the agent. I've got two options:
1. Walk away from the offer
2. Negotiate a higher rate

Anyone have a rough idea what's the typical daily rates for a senior developer (or software architect) at a big bank in Belgium?

What's your daily rate in other countries? 500€ Belgium would be about the same as £450 london without considering expenses.

[Drei]

I don't get this thread at all, read up but very confused. I was looking at info as I had a few offers over the past year for Belgium contracts.

If UK company (for the sake lets say it has 2 Directors, 1 will remain in UK the other will work in Belgium) is dealing with Belgian company, the UK company has a contract and invoices Belgian company for your services since you are a full time employee of the UK company or if UK company bills another intermediary (agency that found the gig) which then bills the Belgian company and you again are a full time employee of the UK company WTF does the Belgian taxman have on you? How would they know what you do in Belgium? Seriously... unless you volunteer this information, as part of EU freedom of movement BS what does it matter where you go an work as long as you are a full time employee with a contract in the UK getting a salary in your UK bank account? The Belgian company has a contract with the Agency or UK Company... you are a resource placed on site by another entity, why would they go out to the Belgian taxman to say anything? You are not applying for a local job with a Belgian company as a resident in Belgium and needs to be added to their HR system, are you now?

All expenses will be paid directly by the UK company (ideally arrange for long term hotel stay or do 4 days in hotel there and 3 days in UK).

Seems extremely over complicated for something that doesn't need to be. I know in Switzerland it is much more of a headache but then again, same principle applies, as long as the company looking for your services has a contract in place with the UK Company what does it matter who goes out there to do the work (could be someone from India, local resource, EU resource).

I worked for a company that has datacenters around Europe, we hired a UK company to do all engineering work, new lines put in, hardware etc, their UK engineers had to be on site in another country working there for a few months. I doubt they registered in said countries as self employed or residents... makes no sense.

EU is not like the Middle East where you need a Residency Permit because you are caged in the country and cannot do anything without one, even there you can stay for 3 months under Work Visa without anyone questioning, you them got for a 1 day trip to Dubai and bang your 3 months Work Visa is reset so you start from 0, no need for RP.
You pay for all your expenses via company CC, you stay in a hotel or other accommodation (under the company name)... I don't understand the logic of it.

[stek]

Remember:

Tax is due where the work is done

There is no EU tax harmonisation

EU freedom of movement allows you 3 months in a state as a visitor, after that you become legally resident and must follow local law to get yourself in the system, for tax, health and residence.

I really don't understand how folks can think the EU is some murky zone where you can pick and choose whether to follow local laws or form a UK exclave and live illegally.

[SueEllen]

Also you are taxed on day one if working in that country.

This thread contains old loop holes that won't be valid anymore