Belgium Tax & Residency

[JackieTsan]

Hello to all,
I am living in a tax free region (Tax resident & living more than 11 months/year) and I have some income from my companies. I now found a job in Belgium which can pay me by invoicing my company in other juration. Therefore I will be in Belgium almost like having no job (I have EU passport).
I am reading that: Belgium is forcing you to register in municipality office after 3 months of living there. I plan to live even in a hotel to avoid this and even go out of the country often. Can I (legally)?
I am also reading that when you register to municipality office then you are considered as tax resident. My plan is to go there for 5 1/2 months and then move back to Singapore and keep my tax residency without affecting (as I will have 6 + months in Singapore in 2023).
But would that be possible? Or I will face issues living there more than 3 months (to 5 1/2) ? I don't want do anything illegal but it's not clear what they need and what is actually the fact.
I also read that if you open a bank account, buy house or car (I don't plan to do ANY of those) then again they consider you at tax resident. And in this case they are taxing the worldwide income etc (which of course in this case it doesn't worth I get the job at all).
Any ideas / experiences?

thank you

 

[CyprusLawyer101]

What type of employment uou would do in Belgium ? And why is your local presence necessary?

 

[JackieTsan]

Thank you so much for answering. I will be working for a big company but they will be paying me from another country (actually it's a subcontractor in another EU country. This subcontractor providing employees for a 6 year project there. The subctonractor in the other EU country will be paying me on any company I want so the money will net be going probably to Dubai...(my own company). With this in mind no tax from this aspect. The problem is if I stay more than X months (is it 6 or 3?) that I will be considered as tax resident. This will be big issue as then I will have to declare other incomes worldwide and at the end of the day will actually lose than make profit (it'd be better not to work in this case as it will be like I'm working and also losing money because the tax in the worldwide income will be way higher of the employment income). you got me?
Therefore, and as I want to be 100% legal, I was planning to come, do the job for 5 1/2 months and go back to Singapore. But I'm reading that in 3 months I have to be registered in municipality and then i'm considered as tax resident, need to apply for exclusions etc. Never ever I want to get into this process.
The job is hybrid but again yes they need me there for 60% of the time at least. A way would be to go in countries around and then only when I work to get to Belgium so I will be staying in a hotel and moving in and out and not make the 3 months in. But too risky and costly traveling in and out.
I need to find an accountant to understand what is the truth actually. Why having an EU passport I need to register to municipality. I am reading about Visas etc even for European people?!?! Insane!
If I need to do this an have issues in the 3 months then I simply don't get the job and stay looking to other countries / regions...

Thank you!

 

[Sols]

I am living in a tax free region (Tax resident & living more than 11 months/year) and I have some income from my companies. I now found a job in Belgium which can pay me by invoicing my company in other juration. Therefore I will be in Belgium almost like having no job (I have EU passport).

Do you mean that you will be living in Belgium but the employer is open to not pay you a salary and instead pay you as a consultant?

I am reading that: Belgium is forcing you to register in municipality office after 3 months of living there. I plan to live even in a hotel to avoid this and even go out of the country often. Can I (legally)?

Maybe, but that's not necessarily related to tax.

Immigration status is not the same as tax status. You can be non-immigrant but still tax resident.

I am also reading that when you register to municipality office then you are considered as tax resident. My plan is to go there for 5 1/2 months and then move back to Singapore and keep my tax residency without affecting (as I will have 6 + months in Singapore in 2023).
But would that be possible? Or I will face issues living there more than 3 months (to 5 1/2) ? I don't want do anything illegal but it's not clear what they need and what is actually the fact.
I also read that if you open a bank account, buy house or car (I don't plan to do ANY of those) then again they consider you at tax resident. And in this case they are taxing the worldwide income etc (which of course in this case it doesn't worth I get the job at all).

Belgium may consider your tax resident because of your economic interest in Belgium (your employment/work), unless you can demonstrate that you clearly do not have any connection to Belgium other than as a service provider.

If you stay in Singapore for the vast majority of the year and only visit Belgium occasionally for meetings, and if you invoice the Belgian company from a Singaporean company, I don't think it's very likely Belgium would pay you any attention.

But if you start spending several months per year in Belgium and doing so in a way that's clearly intended to evade Belgian tax law, your entire structure relies on lack of enforcement and hoping no one comes after you. Belgium is a bureaucratic nightmare so it may take years before anyone — if anyone ever — spots you. But that's not the same as doing everything legally.

Ultimately, you're asking about things that are very specific to Belgian tax law. The only one who can help you with that is a Belgian lawyer/tax adviser.

Thank you so much for answering. I will be working for a big company but they will be paying me from another country (actually it's a subcontractor in another EU country. This subcontractor providing employees for a 6 year project there. The subctonractor in the other EU country will be paying me on any company I want so the money will net be going probably to Dubai...(my own company). With this in mind no tax from this aspect. The problem is if I stay more than X months (is it 6 or 3?) that I will be considered as tax resident. This will be big issue as then I will have to declare other incomes worldwide and at the end of the day will actually lose than make profit (it'd be better not to work in this case as it will be like I'm working and also losing money because the tax in the worldwide income will be way higher of the employment income). you got me?
Therefore, and as I want to be 100% legal, I was planning to come, do the job for 5 1/2 months and go back to Singapore. But I'm reading that in 3 months I have to be registered in municipality and then i'm considered as tax resident, need to apply for exclusions etc. Never ever I want to get into this process.

You are also considered tax resident in Belgium if Belgium is your place of primary economic interest. That isn't exactly defined in law. But it can mean the place where you are employed or do the work.

Belgium doesn't seem to have a specific duration check for tax residence. So it doesn't matter how many days you are or aren't there.

But after three months, you have to register with the government that you're living in Belgium.

The job is hybrid but again yes they need me there for 60% of the time at least. A way would be to go in countries around and then only when I work to get to Belgium so I will be staying in a hotel and moving in and out and not make the 3 months in. But too risky and costly traveling in and out.
I need to find an accountant to understand what is the truth actually. Why having an EU passport I need to register to municipality. I am reading about Visas etc even for European people?!?! Insane!

It's not technically a visa. It's simply registering yourself as a resident. AFAIK, all EU countries have it.

 

[JackieTsan]

Hi Sols. thanks for your time to answer!

Do you mean that you will be living in Belgium but the employer is open to not pay you a salary and instead pay you as a consultant?

yes. Actually its not direct employer. Imagine a company in Italy gets the project in Belgium. Belgium employer pays the Italian company for the services. I (my company) will be invoicing the Italian company (probably from my company in Dubai). I nBelgium they need my physical presence to do the job of course

Immigration status is not the same as tax status. You can be non-immigrant but still tax resident.

Yes, clear. Important is NOT to be considered as tax resident. Do I have risk to considered as tax resident if working there 5 1/2 months invoicing other company? I also have other employment in Singapore and Malta

If you stay in Singapore for the vast majority of the year and only visit Belgium occasionally for meetings, and if you invoice the Belgian company from a Singaporean company, I don't think it's very likely Belgium would pay you any attention.

It's very far. What I can do is staying in Belgium and traveling around some countries in EU for the 5 1/2 months of the year. So I can get 6 1/2 in Singapore as I need to keep my papers, resicence, Tax residence active.

But if you start spending several months per year in Belgium and doing so in a way that's clearly intended to evade Belgian tax law, your entire structure relies on lack of enforcement and hoping no one comes after you. Belgium is a bureaucratic nightmare so it may take years before anyone — if anyone ever — spots you. But that's not the same as doing everything legally.

I don't want to evade any law, that's why I'm asking. In almost ALL the countries if you stay 5 1/2 months you pay tax only on your local income, you go back to your residence / tax res. country and that's it - where you pay worldwide income if you have to.. BElgium seems to have made their own tricks(?) - exceptions which are not clear.

Ultimately, you're asking about things that are very specific to Belgian tax law. The only one who can help you with that is a Belgian lawyer/tax adviser.

True Can you suggest any? Thank you!

 

[Sols]

yes. Actually its not direct employer. Imagine a company in Italy gets the project in Belgium. Belgium employer pays the Italian company for the services. I (my company) will be invoicing the Italian company (probably from my company in Dubai). I nBelgium they need my physical presence to do the job of course

Understood, thanks for the clarification. That is a complicated but not unusual arrangement. If the company is in Italy (or similar country) and bringing workers temporarily to Belgium, there might be some tax treaty you can use to avoid being tax resident in Belgium.

Yes, clear. Important is NOT to be considered as tax resident. Do I have risk to considered as tax resident if working there 5 1/2 months invoicing other company?

Many countries base tax residence on time spent in that country. However, Belgium doesn't have such a rule. The definition of tax resident is much more vague. I think there is a risk you are tax resident in Belgium simply by doing work there, regardless of where you live most of the year.

BElgium seems to have made their own tricks(?) - exceptions which are not clear.

Absolutely correct. The laws of Belgium are very complicated and researching them can be very challenging. Bureaucracy there is among the worst in the world. Despite being a small country, it has extremely complicated layers of laws and internal politics.

True Can you suggest any? Thank you!

No direct experiences with Belgian companies but Grant Thornton, TMF, and Ecovis have offices in Belgium and they're usually good.

 

[JackieTsan]

Understood, thanks for the clarification. That is a complicated but not unusual arrangement. If the company is in Italy (or similar country) and bringing workers temporarily to Belgium, there might be some tax treaty you can use to avoid being tax resident in Belgium.

I have to thank you for your time and help, @Sols ! No cannot use tax treaty. The company in Italy will not pay me as worker They will pay my own company with invoice. So, I will not be anywhere to use the treaty of double taxation...
It's like that

ME (getting dividends from my company) -> MY COMPANY -> invoicing COMPANY IN ITALY -> invoicing COMPANY IN BELGIUM to get employees

Many countries base tax residence on time spent in that country. However, Belgium doesn't have such a rule. The definition of tax resident is much more vague. I think there is a risk you are tax resident in Belgium simply by doing work there, regardless of where you live most of the year.

Understand. But I will not be (officially) doing work, but, yes, I will be doing and it's a company that can be proven that I was working there by access cards etc.

Absolutely correct. The laws of Belgium are very complicated and researching them can be very challenging. Bureaucracy there is among the worst in the world. Despite being a small country, it has extremely complicated layers of laws and internal politics.

Yes, but who can clarify? I want to know and decide I come or no.

No direct experiences with Belgian companies but Grant Thornton, TMF, and Ecovis have offices in Belgium and they're usually good.

Thank you, @Sols

 

[AndyAresa]

Hello to all,
I am living in a tax free region ...

Hi @macthaiver,
you wrote that you are tax resident in Singapore and have a company in Dubai. So you do not have to pay tax in Singapore on the dividend income you receive from Dubai company? Is this a special arrangement that you implemented or is there a general rule in Singapore that foreign dividends are not taxed, regardless of whether they are paid from taxed or untaxed profits? Do you have to maintain substance in the Dubai company in order to have the dividends non-taxable in Singapore?

 

[ericd]

Registration to municipality office is a requirement after 90 days in many european countries. Same as you, I don't want to register myself as resident for the first few months. My understanding, I may be wrong, of this european rule for EU passport holder is for any stay duration over 90 days. A proper fully documented "border run" to any non-schengen country should do the trick ?

You may have fiscal liabilities still.

 

[Jade33]

well i guess there is tax on the 60% of work you perform in belgium and lets not forget our lovely social security.

Buitenlandse werknemers - Federale Overheidsdienst Werkgelegenheid, Arbeid en Sociaal Overleg

werk.belgie.be

Komen werken in België | Informatie en onlinediensten voor burgers – socialezekerheid.be

Vrij verkeer en detachering

www.socialsecurity.be

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Buitenlanders die in Vlaanderen in loondienst willen werken, hebben daarvoor mogelijk een toelating tot arbeid voor nodig. De precieze reden waarom een buitenlander in Vlaanderen verblijft of zal verblijven, bepaalt mee onder welke voorwaarden en via welke procedure hij in Vlaanderen zal mogen…

www.vlaanderen.be

 

[stronco]

I know a person that stayed in Belgium for 2 years and never registered at municipality. Keeping a low profile helps.

EU has open borders, so it is generally its quite difficult for them to track which country you are staying in.

 

[JackieTsan]

I don’t know what is the substance I hear it many times; Singapore no tax this look :
Singapore has no WHT on dividends over and above the tax on the profits out of which the dividends are declared.

Registration to municipality office is a requirement after 90 days in many european countries. Same as you, I don't want to register myself as resident for the first few months. My understanding, I may be wrong, of this european rule for EU passport holder is for any stay duration over 90 days. A proper fully documented "border run" to any non-schengen country should do the trick ?

You may have fiscal liabilities still.

I’m thinking to be flying in and out often (maybe once a week). They want me half week at the office so I can fly around for the 5 months and then back to Singapore after 5 1/2 months .

The three months are consecutive or total ?

 

[JohnLocke]

well i guess there is tax on the 60% of work you perform in belgium and lets not forget our lovely social security.

That must be the highest tax rate to be paid! Is it not divided into income sizes as in many other countries, i.e. the more you earn the more tax you have to pay?

 

[ericd]

The three months are consecutive or total ?

I couldn't find any EU law reference of any timeframe to count 90 total days. 90 days per semester, per year, in a lifetime ?

Then, my understanding is 90 consecutive days.

If you play by the rules, you have to register yourself to belgian municipality in the first 10 days of your stay "if you are not staying in a hotel, hospital, boarding house or prison". Doing so, you receive a document proving your presence on Belgian territory for your stay duration and for a maximum of 3 months. Why do you need one ? What for ?

Additional evidence that the 90 days are consecutive.

But still you may commit fiscal and social welfare fraud.

 

[JackieTsan]

What do you mean by the still may commit fiscal and social etc? Sorry I didn’t get it

 

[ericd]

What do you mean by the still may commit fiscal and social etc?

well i guess there is tax on the 60% of work you perform in belgium and lets not forget our lovely social security.

 

[Mike Forman]

What do you mean by the still may commit fiscal and social etc? Sorry I didn’t get it

You work in Belgium and indirectly for a Belgium company. If total of less then 90 days in Belgium in one year (the day you arrive even 1 minute before midnight counts as a day then you can escape Belgian taxes, if more days you violate the law and are working illegally in Belgium committing offences.

Will they figure out, probably not if you stay low key and don't rent a house for the whole period.

If they do however it maybe, you will need to proof that you were not in Belgium for more then 90 days by providing rent in other countries, hotel stays, spending, travel tickets etc. It will be to you to proof that.

They won't leave you alone and you will receive a tax bill with fines and interest which will exceed 100pct of your salary in total excluding legal fees if you don't agree.

So if you take the risk and have bad luck you will get this bill, get a legal case and then either pay or escape outside EU for several years.

They are very aggressive.

 

[JackieTsan]

I couldn't find any EU law reference of any timeframe to count 90 total days. 90 days per semester, per year, in a lifetime ?

Then, my understanding is 90 consecutive days.

If you play by the rules, you have to register yourself to belgian municipality in the first 10 days of your stay "if you are not staying in a hotel, hospital, boarding house or prison". Doing so, you receive a document proving your presence on Belgian territory for your stay duration and for a maximum of 3 months. Why do you need one ? What for ?

Additional evidence that the 90 days are consecutive.

But still you may commit fiscal and social welfare fraud.

Not sure that’s what I’m trying to find

You work in Belgium and indirectly for a Belgium company. If total of less then 90 days in Belgium in one year (the day you arrive even 1 minute before midnight counts as a day then you can escape Belgian taxes, if more days you violate the law and are working illegally in Belgium committing offences.

Will they figure out, probably not if you stay low key and don't rent a house for the whole period.

If they do however it maybe, you will need to proof that you were not in Belgium for more then 90 days by providing rent in other countries, hotel stays, spending, travel tickets etc. It will be to you to proof that.

They won't leave you alone and you will receive a tax bill with fines and interest which will exceed 100pct of your salary in total excluding legal fees if you don't agree.

So if you take the risk and have bad luck you will get this bill, get a legal case and then either pay or escape outside EU for several years.

They are very aggressive.

Thank you so much for your help and time!

Are you sure that for the three months if I’m going and living I’m safe? They say job is two or three days per week at the office and others days remote. So what if I’m flying in one day before to work and get out immediately the evening after the job? Will I be legal in any occasion?
And do this for a full period of 5 1/2 months. So I can stay in Italy, France, Spain, Lu in between this 5 1/2 months period? Or they can still consider me as tax resident there? Yes I’ll be working for an Italian company that provides people to this company in Belgium. My own company in Seychelles will sign an agreement with the Italian company that will provide me to the Belgian company.
Yesterday I had a chat with a (maybe well known) German lawyer in Belgium and he told me to risky and they can consider the Seychelles company as tax resident of Belgium too as I’ll be working for this company (my company that will be invoicing).
The funny is that the company provide hundreds of people like that which don’t care at all. Most have companies that are paper companies across the world and work like that.
I want you be 100% legal and safe, I’d rather not take the job rather create trouble to my self.
Legal but not victim

 

[Mike Forman]

Not sure that’s what I’m trying to find

Thank you so much for your help and time!

Are you sure that for the three months if I’m going and living I’m safe? They say job is two or three days per week at the office and others days remote. So what if I’m flying in one day before to work and get out immediately the evening after the job? Will I be legal in any occasion?
And do this for a full period of 5 1/2 months. So I can stay in Italy, France, Spain, Lu in between this 5 1/2 months period? Or they can still consider me as tax resident there? Yes I’ll be working for an Italian company that provides people to this company in Belgium. My own company in Seychelles will sign an agreement with the Italian company that will provide me to the Belgian company.
Yesterday I had a chat with a (maybe well known) German lawyer in Belgium and he told me to risky and they can consider the Seychelles company as tax resident of Belgium too as I’ll be working for this company (my company that will be invoicing).
The funny is that the company provide hundreds of people like that which don’t care at all. Most have companies that are paper companies across the world and work like that.
I want you be 100% legal and safe, I’d rather not take the job rather create trouble to my self.
Legal but not victim

Seychelles is a big red flag anywhere in EU, so this company books payments to Seychelles will be already investigated. And then they come to you as they will want to know what was paid to the Seychelles and who are the UBO.

If you are not in EU it's no problem. If t you are you can trouble in any country in EU you live or work. How will you spend and pay everything in EU as well.

So not worth the risk if you stay over 30 days in EU. If you are in the office and they check as well you have the same issue. It just needs some bad luck to get into trouble.

Stay outside EU or pay taxes there, is my recommendation

 

[JackieTsan]

Seychelles is a big red flag anywhere in EU, so this company books payments to Seychelles will be already investigated. And then they come to you as they will want to know what was paid to the Seychelles and who are the UBO.

If you are not in EU it's no problem. If t you are you can trouble in any country in EU you live or work. How will you spend and pay everything in EU as well.

So not worth the risk if you stay over 30 days in EU. If you are in the office and they check as well you have the same issue. It just needs some bad luck to get into trouble.

Stay outside EU or pay taxes there, is my recommendation

You are very right, true. Thank you very much!