freelance belgium / cyprus

[fsociety]

Hello all
I am freelance a web developer and my current client is Belgium.

i will work +- 50% on site in Belgium (less than 183 days)
i will live majority in a RV van (that can change)

I invoice them through a Cypriot company.
My tax residence is in Cyprus with non-dom status
i will be et least 2 month in cyprus and travel around europe.

Can Belgium ask me to pay taxes in Belgium?

 

[Sols]

Can Belgium ask me to pay taxes in Belgium?

Yes, on either all of your income or income earned while physically in Belgium (i.e. around half your income).

 

[fsociety]

Yes, on either all of your income or income earned while physically in Belgium (i.e. around half your income).

ok thanks for you answer, there is any solution to avoid that ?

 

[Sols]

ok thanks for you answer, there is any solution to avoid that ?

Stop spending time in Belgium. Run your business entirely from Cyprus. You can visit your client in Belgium occasionally (reasonable business travel), but not work from Belgium for weeks—months per year. Alternatively, join or form a political party in Belgium, win the next elections, and change the tax law.

Belgium has rather loose and vague definitions of tax residence. It's probably possible to interpret the Belgian law to mean that you are tax resident there, since you have no other place that's a genuine primary place of tax residence. If you're tax resident, you are liable for Belgian tax on 100% of your income.

Even if you're non-resident in Belgium, you still do work in Belgium and that is taxable in Belgium.

Much the same goes for your Cypriot company. It may be tax resident in Belgium or have a Permanent Establishment there. Depending on which, 100% or +/- 50% of your company's income is taxable in Belgium.

Chances are that no one will come after you if your income levels are low/uninteresting. But if someone does, things could get very complicated and expensive.

 

[fsociety]

yes it's looks complicated to be full time remote mabe i can lower it to 25% on site but less i will have more dificulties to find clients.

mabe i have a solution, if i have some associates

imagine we create a company, they work for other countries then belgium cannot ask for taxes right ?

but there we have a issue how to get dividents based on performances?
is it even possible ?

again thanks for helping me it's very dificult to know wat we can do whitout experience of experienced peoples a lot of stuff is subject of interpretation in fiscality..

 

[Sols]

yes it's looks complicated to be full time remote mabe i can lower it to 25% on site but less i will have more dificulties to find clients.

Maybe, if you also establish bonafide tax residence and primary location of economic interest/substance somewhere else (such as Cyprus, where you already have a base).

mabe i have a solution, if i have some associates

imagine we create a company, they work for other countries then belgium cannot ask for taxes right ?

It depends on exactly how it's set up but yes, they can. Every country can make a claim. Then it's up to you to fight back.

but there we have a issue how to get dividents based on performances?
is it even possible ?

No, the closest you could get is assigning different share types with different dividend calculations. But performance-based dividends are antithetical to what dividends are supposed to be. Shareholders don't usually work for the company. If they do (like in a startup for example), they get a salary and bonus on top of the salary.

again thanks for helping me it's very dificult to know wat we can do whitout experience of experienced peoples a lot of stuff is subject of interpretation in fiscality..

I would strongly recommend speaking with a Belgian tax attorney. I could be wrong, don't trust me fully. Especially in Belgium, where the tax laws are an overcomplicated mess (like all Belgian bureaucracy/government).