Belgium or Netherlands - which would you pick?

[Sysman]

If you had the chance between two roughly equivalent paying contracts in Belgium or the Netherlands, which one would you choose?

Is there a significant difference in the cost of living between the two?

And of course, what are the relevant routes for minimising tax in each?

I'm currently resident in Switzerland and would prefer to do it as self employed from here / come back for weekends etc if poss.

Cheers
Sysman

[BlasterBates]

For most countries there is a 180 days rule, during which you can be taxed where you´re domiciled, after that normally you qualify as resident for tax purposes, even if you pop home at the weekends. Obviously if you live in hotels you´re less likely to be caught, and some people just continue being taxed where they live beyond 6 months; however potentially you can end up with a huge tax bill and penalties.

I would advise getting some offers from Accountants that can manage your tax affairs in Belgium or the Netherlands. They will probably also advise you on the residency rule.

The Albany group are in Switzerland and in the Netherlands, so it might be worth enquiring there.

Personally I find it easier just to get taxed locally, it does save a lot of hassle, and I would only consider being taxed where I was domiciled if it was short term or there was a significant saving.

[Crown Royal]

Belgium

Like you, I'm currently based in Switzerland, but I've decided to relocate to Brussels for a long-term opportunity. I also had a choice to go to the NL as well.

Both countries are terrible for taxes and social security payments- especially when compared to how good things are here in Switzerland. But I chose Belgium, mainly because of Language. I speak French, but not Dutch. There are some other advantages in Belgium such as no capital gains taxes, no wealth tax etc. Which is good if you have a side business, or additional sources of revenue that isn't really income per se. Also while income tax evasion is illegal there, it seems that it is tolerated there (to an extent) and Belgian accountants seem to be open about it, and are more creative with income distribution solutions!

Cost of living, for a major European city like Brussels, seems to be moderate. English is widely spoken and is the official language for most major companies (including Belgian ones - in order to keep peace between the French and Dutch communities I assume)

The bad part about both places is the weather!

If you are a B or a C permit holder in Switzerland, then you can probably get away with being in the Swiss system, for a while atleast. There are a few management companies in Switzerland that could help you out and act as your employer. Atleast if you sub-contract under a Swiss management company, at the end of your contract you can get unemployment benefit (and in CH it's quite good - up to a max of somthing like 6000-7000 CHF a month!!), while looking for your next contract.....and you can get that for up to 18 months, for basically doing FA....all you need to do is prove that you are making 10 job offers a month....that's just one day on jobserve, really! What a system!

[Francko]

If you had the chance between two roughly equivalent paying contracts in Belgium or the Netherlands, which one would you choose?

Netherlands. It's a lot more fun.

[Boris]

Go the cloggies

I agree with Francko.

Apart from the fact that most of BE is generally just plain decrepit, dirty and full of ugly women (a lot like the UK in fact), NL has a nice tax ruling for contractors recruited internationally that allows your first 30% of gross to be paid tax free.

Even though there is more 'flexibility' in the enforcement regime in BE, the net effect is you will probably be better off in NL.

Getting a good local accountant is crucial...

[darmstadt]

Although I don't tkae long term contracts (yet) I work in most countries in the EMEA region but am resident in Germany and bill to the USA. I pay everything here in Germany but I do know that if I work in one for more than 180 days in the year I pay taxes, at least in the EU, in that country.

[expat]

For most countries there is a 180 days rule, during which you can be taxed where you´re domiciled, after that normally you qualify as resident for tax purposes, even if you pop home at the weekends. Obviously if you live in hotels you´re less likely to be caught, and some people just continue being taxed where they live beyond 6 months; however potentially you can end up with a huge tax bill and penalties.

I think you have that quite wrong.

For most countries there is a 180 days rule, during which you may not be qualified as resident for tax purposes, which would mean that you would only pay tax there on the money earned there (as against paying tax on all money earned anywhere).

It is quite mistaken to suggest that there is a period during which you can legitimately earn money in a country and not be liable to pay any tax in that country.

There are some circumstances in which it can be so, and perhaps more circumstances in which you can get away with it for a while (that's illegal), but normally if you take a contract in Belgium or the Netherlands you will be liable to pay tax on your earnings there from Day 1.

[Antman]

"Apart from the fact that most of BE is generally just plain decrepit, dirty and full of ugly women (a lot like the UK in fact), "

Makes 'em easier to crack though

[ASB]

It is quite mistaken to suggest that there is a period during which you can legitimately earn money in a country and not be liable to pay any tax in that country.

That is slighty overstating things. Certainly wise to bear in mind though. It does depend upon the rules relating the the particular country, be them EC or not.

A lot depends on how the work is done, and where.

One thing nobody ever seems to consider is multiple residency. Just becoming tax resident in Brussels does not [of itself] prevent you from being tax resident in UK (or anywhere else for that matter). This is where the miutae of DTA's can become very important. Generally you will only pay the net higher rate.

Social security contributions are also important. There are some mechanisms, in the EC at least, where it is possible to pay in ones home country. This can be both coft effective and important for maintaining benefit rights etc.

[PerlOfWisdom]

Belgium or Netherlands

Hitler couldn't decide, so he had both.