Tax in Belgium

Starting business in Belgium

Setting up a business in Belgium will most likely result in sending over employees from the home country to work there. Most probably you are not familiar with tax in Belgium. This brings along some specific challenges you will need to address in order to ensure your administration is fully in line with Belgian labor rules, as well as to make sure your employee’s personal administration is also fully compliant.

The most common questions

  • Is a work permit and residence visa required in order to have employees legally work / reside in Belgium?
  • Which social security system will apply? The home country system or Belgian social security? Will Belgian income taxes be due? Which tax benefits are available for the company and expats?
  • Is the set-up of a payroll in one country or a salary split payroll in multiple countries required?
  • Can a split taxation be applied in order to reduce the overall tax burden on behalf of the employee?
  • Is the employee eligible for the beneficial special tax status applicable to foreign executives temporarily assigned to Belgium?
  • Will Belgian labor law be applicable? Do I need to draft a Belgian employment contract or will an assignment letter be sufficient.
  • Is the creation of a Belgian legal entity the best option to start doing business in Belgium?

Importance of choosing the right advisor

An upfront and well planned set up of the Belgian assignment will undoubtedly be a crucial factor in the success of your business in Belgium.

Using a specialist expatriate tax adviser is recommended. They can help you navigate requirements and can help you set up your local administration as well as assist you in fulfilling all formalities. 

 

Tax-BusinessBelgium.be

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Standard VAT rate

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Standard corporate tax rate

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Belgium income tax rate up-to 13,250 €

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