If a taxpayer is domiciled
in Belgium, or has their main economic interests
in the country, they are considered to be resident
there for tax purposes.
Persons resident in Belgium
for tax purposes pay tax on their worldwide income.
Non-residents are taxed solely on Belgian-sourced
income, and workers temporarily seconded to the
country can sometimes take advantage of the special
expatriate regime, which allows them to be taxed
as non-residents, amongst other benefits.
EU residents can reside
in Belgium for three months before requiring a residence
permit, and do not need a visa or work permit. Non-EU
and EEA nationals will likely need a visa, but a
residence permit is again not usually required for
stays shorter than 90 days.
Cost
of Residence Document (approx)
Work
Permit Required
Work
Permit Authority
Visas cost between EUR60-180, depending
on the length of the individual’s stay. Spouses;
under-21; and dependant parents of a Belgian or
other EU citizen; receive a visa free of charge.
Yes, for workers from outside the
EEA area. EU nationals are exempt from this requirement.
Belgian Employment Ministry
Personal
Income Tax
Corporate
Income Tax
Social
Taxes
Personal income tax is imposed progressively
at the federal level, at rates of between 25%-50%.
Regional taxes are also imposed, at a percentage
of the federal liability (usually between 6-7%).
Corporation tax is levied at federal
level only. The headline rate of corporation tax
is 33.99% (30%, plus an austerity surcharge of 3%).
Lower rates, ranging between 24.98% and 35.54%,
apply on a progressive basis on businesses with
taxable income below EUR322,500.
Employees pay 13.07%; employers pay
37.84% (calculated as a percentage of gross salary).
Self-employed workers must join a social insurance
fund, paying a percentage of their net income to
said fund.
Capital
Gains Tax
Property
or Wealth Tax
Stamp
Duty
The tax rate imposed on gains made
by individuals varies according to the type of asset,
with gains arising from assets disposed of in the
course of business activity taxed at the corporate
income tax rate, share gains which qualify as professional
income taxed at the appropriate personal income
tax rate, and gains from the sale of fixed tangible
assets held for more than 5 years taxed at 16.5%.
Investment gains made by individuals not undertaking
business-related activity are not generally subject
to CGT, with certain exceptions (including if the
gains are the result of speculative activity, they
are the result of the disposal of immovable property
within 5 years of the acquisition of said property,
or they relate to the sale of intangible property
rights, or to the disposal of a substantial shareholding
to a non-EU company). A 1.5% local element is usually
imposed.
There is a tax on the transfer of
most immovable property, with rates of up to 12.5%.
A real property tax can also be imposed (at varying
rates depending on the region) on the presumed annual
rental income of land, buildings, and certain types
of equipment.
A tax is applied to the sale or purchase
of certain stock/share transactions.
Other
Taxes
Inheritance Tax is payable at
varying rates depending on factors including the
relationship between the benefactor and beneficiary,
the value of the bequest. Inheritance tax varies
between 3% and 30%. Gift taxes can also be payable
at varying rates. Under the EU Savings Tax Directive
there is a withholding tax of 20% on savings interest
earned by residents of participating countries.
Value-added tax is also levied at a standard
rate of 21%, with reduced rates of 12% and 6%
imposed on certain goods and services.
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
Cyprus
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