Guide for Foreigners Working in Flanders

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Guide for foreigners working in Flanders-BelgiumImmigration - Tax - Social Security Law - Social Formalities

a publication ofFlanders Investment & TradeNew address from 1 January 2014 onwards:Koning Albert II-laan 37 - 1030 Brussels - BelgiumT +32 2 504 88 71 I F +32 2 504 88 [email protected] I www.investinflanders.com

AcknowledgementWe would like to thank PricewaterhouseCoopers Tax Consultants for their contribution to this booklet. Their Belgian immigration team members are:• [email protected], Partner, +32 3 259 31 54• [email protected], Director, +32 3 259 31 56• [email protected], Principal Adviser, +32 3 259 31 76

DisclaimerFlanders Investment & Trade and the contributing consultancy firm have taken great care in compiling these sections. Please be aware, however, that they do NOT offer comprehensive tax or legal advice for specific transactions or investments. Rather, this publication is designed to provide an overview of the subject matters covered and to make the reader aware of certain features of the applicable laws and regulations. Potential investors are strongly urged to retain competent legal and/or tax counsel before implementing a business plan or making an investment.The information presented is based on laws and regulations in effect on January 1, 2013.

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Table of contents

1 Immigration formalities ............................................................7 1.1 General................................................................................. 7 1.2 Work permit........................................................................ 11 1.3 Professional card................................................................ 18 1.4 Obtaining a visa to enter Belgium...................................... 21 1.5 Registration with the local municipality of residence. ...... 23 1.6 European Blue Card ........................................................... 25

2 Personal tax formalities ........................................................ 27 2.1 General ............................................................................... 27 2.2 Belgian taxation of residents ............................................. 28 2.3 Belgian taxation of non-residents. ..................................... 30 2.4 Tax filing obligation ............................................................ 33

3 Social law formalities .............................................................35 3.1 Limosa................................................................................ 35 3.2 Social documents and social representative ..................... 39

4 Social security legislation .......................................................41



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Immigration - Tax - Social Security - Law - Social Formalities 7

1immigrationformalities

1.1 General

Before relocating an employee to Belgium or before a self em-ployed person moves here, it is crucial to know whether a work permit or professional card, and a residence permit are required. Without the appropriate document(s), (s)he may not be allowed to work or reside in Belgium.

The procedure that has to be followed in this respect depends on the individual’s nationality.

A. The individual is a national of one of the EEA countries (Eu-ropean Economic Area: EU members + Iceland, Norway, and Liechtenstein) or Switzerland

Work permit – Professional card - Exemption

The following countries are members of the European Union: Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Neth-erlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.

The EU treaty provides for the free movement of persons within the European Union. As a consequence, employees/self-em-ployed persons who are citizens of an EEA member state or Switzerland are, in principle, free to work in another member state without a work permit/professional card.Please note that, for work permit purposes, however, this is not yet the case for the 3 countries that joined the EU in January 2007, i.e. Bulgaria, Croatia and Romania (see important note below).

Visa requirements

Employees who are nationals of the above-mentioned countries can enter Belgium on the basis of their national passport, with-out requiring a visa.

Without the appropriate document(s), (s)he may not be allowed to Without the appropriate document(s), (s)he may not be allowed to

the European Union. As a consequence, employees/self-em-the European Union. As a consequence, employees/self-em-ployed persons who are citizens of an EEA member state or ployed persons who are citizens of an EEA member state or Switzerland are, in principle, free to work in another member Switzerland are, in principle, free to work in another member Switzerland are, in principle, free to work in another member state without a work permit/professional card.state without a work permit/professional card.

work or reside in Belgium.work or reside in Belgium.



Belgian residence permit

In the case of a stay in Belgium of less than 90 days (within any given period of 6 months), EEA or Swiss nationals have to be in possession of a ‘declaration of presence’ (“Annex 3ter”) issued by the municipality of their place of residence in Belgium. This declaration of presence is issued on the basis of the individu-al’s national passport and is valid for 90 days. If the individual stays in a hotel, the hotel register replaces the requirement of a declaration of presence.If the individual stays in Belgium for more than 90 days (within any given period of 6 months), a ‘declaration of registration’ has to be applied for. The application for this “declaration of regis-tration” (also known as the “Annex 8”) has to be fi led with the municipality of the place of residence of the employee. The EEA or Swiss national is free to opt for the electronic version of the declaration of registration, in the form of the E-card. The validity of this card depends on the length of stay of the individual in Belgium. In general it is valid for 5 years.

Important note – work permit

For the following EU countries (new EU member states as from 1 January 2007), transitional measures apply: Bulgaria, Romania and Croatia.

In most cases, employees who are nationals of these new EU member states still need a work permit in order to work in Belgium legally. The conditions for obtaining a work permit are more lenient, however. The transitional measures will apply until 31 December 2013.

The residence requirements for entering Belgium are not dif-ferent from those applying to other EU nationals.

B. The individual is a non-EEA national

Work permit

In principle, every non-EEA national working in Belgium has to hold a work permit, although some categories of workers are exempted from this obligation. In parallel, the employer has to obtain an authorization to employ. Hereafter, we will only refer to the work permit for both documents as they are linked. The work permit has to be applied for in Belgium by the employer (or an agent).

member states still need a work permit in order to work in member states still need a work permit in order to work in Belgium legally. The conditions for obtaining a work permit are Belgium legally. The conditions for obtaining a work permit are



Professional card – Self-employed persons

In principle, every non EEA-national intending to take up a self-employed activity in Belgium has to be in possession of a professional card (except Swiss nationals), although some cate-gories are exempted from this obligation. The professional card has to be applied for at the Belgian diplomatic or consular representative in the applicant’s country of residence or at a recognized business registration agency (in Dutch: “erkend ondernemingsloket” / in French: “guichet d’entreprise agréé”) if the applicant already legally resides in Belgium.

Visa requirements

In the case of a stay in Belgium of less than 90 days (within any given period of 6 months), it will depend on the individual’s na-tionality whether a visa is required to enter Belgium or not: citi-zens of the USA, Australia, Brazil, Canada, South Korea, Japan, etc. can enter Belgium on the basis of their national passport. For other nationalities such as citizens of India, China, Turkey,... a Schengen visa C will be required.In the case of a stay in Belgium for more than 90 days (within any given period of 6 months), all non-EEA nationals have to be in possession of a type D visa in order to enter the country and are required to obtain a Belgian residence permit. For more details, see the separate section on residence permit formali-ties further on.

Residence in Belgium

For a stay in Belgium of less than 90 days (within any given period of 6 months), non-EEA nationals have to be in possession of a ‘declaration of arrival’ issued by the municipality of their place of residence. This document is issued on the basis of their Schengen visa C or national passport and is valid for 90 days. If the individual stays in a hotel, the hotel register record replac-es a declaration of arrival. If the individual stays in Belgium for more than 90 days (within any given period of 6 months), a Belgian residence permit (electronic residence card A) has to be applied for. This application has to be filed with the municipality of the individual’s place of residence.



1.2. Work permit

The employer has to obtain an ‘authorization to employ the employ-ee’. The employee has to be in possession of a valid work permit. These two documents have to be obtained prior to the commence-ment of work in Belgium. In practice, both applications are fi led at the same time by the employer or its representative. We use the term ‘work permit’ hereinafter in reference to both documents, as they are inextricably linked.

A. Procedure for obtaining a work permit

1. In order to obtain a work permit, an offi cial application form accompanied by a set of prescribed documents has to be sent to the regional work permit authorities.

2. After approval, the original work permit will be sent to the local municipality of the district where the employer or its representative is established; the local municipality actually delivers the work permit. The original authorization to em-ploy will be sent to the employer or its representative.

ee’. The employee has to be in possession of a valid work permit. ee’. The employee has to be in possession of a valid work permit. The employer has to obtain an ‘authorization to employ the employ-The employer has to obtain an ‘authorization to employ the employ-



B. Types of work permits

1. Type AWork permit type A is meant for those employees who are able to prove that in the period of 10 years prior to the application they have worked in Belgium with a work permit type B for a consecutive period of 4 years during a legal and uninterrupted residence in the same period.

The years worked with a work permit B in one of the following categories do not count to receive a work permit Type A:• Specialized technicians;• Internships and au pairs;• Posted employees;• Researchers and guest professors at a university or other

recognized scientifi c institutions;• Highly skilled employees;• Spouse and children of a self-employed person.

The work permit A is delivered in the name of the employee and not linked to an employer.

City of Ghent by night

categories do not count to receive a work permit Type A:categories do not count to receive a work permit Type A:



2. Type BIn general, only certain categories are able to receive this type of work permit:• Highly skilled employees;• Managerial employees;• Internships;• Specialized technicians;• Professional athletes;• Au pairs;• Spouses of work permit holders or professional card holders;• Members of theoretical intragroup training programs.

The most common type in relation to employment within multi-nationals is type B, which has to be applied for by the employer. This work permit B is linked to one employer. More details about this permit will be explained in the section below.

3. Type CThis type of work permit is meant for categories of persons who are staying in Belgium for a very specifi c reason and for a limited period only. Examples are: foreign students, seasonal workers in certain sectors, asylum seekers; etc.

General conditions for work permit type BThe Belgian legislation places general restrictions on the issue of work permits and authorizations to employ; they can only be issued if:

• The employer can prove that it cannot fi nd an employee on the European employment market with the same qualifi cations as the foreign employee it wishes to hire (labor market criterion).Proving that no employee can be found on the Belgian (or Eu-ropean) employment market with the same professional skills, even after training, is a complex matter. In fact, the employer will have to demonstrate that it has searched extensively (by adver-tising in newspapers, via the local employment offi ce, etc.) for an employee with the same qualifi cations;

• The person concerned is a national of a country with which Belgium has a manpower agreement (the new EU member states, Algeria, Bosnia-Herzegovina, Macedonia, Montenegro, Morocco, Serbia, Kosovo, Tunisia and Turkey);

• A separate employment contract has been signed containing quite specifi c provisions e.g. dealing with the costs of repatri-ation and healthcare;

• The employee is not yet in Belgium for the purpose of his/her employment.

who are staying in Belgium for a very specifi c reason and for a who are staying in Belgium for a very specifi c reason and for a limited period only. Examples are: foreign students, seasonal limited period only. Examples are: foreign students, seasonal



A work permit for an employee not qualifying for an exemption from these strict conditions will by no means be automatically issued.

Exemptions:The conditions are waived for certain “privileged” categories of em-ployees. The two most common are highly qualifi ed persons and managerial employees.

these strict conditions will by no means be automatically issued.these strict conditions will by no means be automatically issued.



Highly qualifi ed employeesHighly qualifi ed employees whose annual gross taxable salary is at least EUR 38,665 (non-taxable expatriate allowances not included; amount for 2013) do not need to fulfi ll the labor market criterion, or fall under a manpower agreement or have a specifi c employment contract. The work permit type B for highly qualifi ed employees can be granted for a maximum period of eight years.

Hence, a work permit is generally issued if all the documents mentioned below are provided. The person’s qualifi cations, position and experience are considered in determining whether or not the employee is highly qualifi ed.

The eight year restriction on the validity of a work permit does not apply where the employee is under a contract with a Belgian company (i.e. has not been posted to Belgium) and earns a gross annual salary higher than EUR 64,508 (amount for 2013).

Managerial employeesFor managerial employees earning a gross annual salary of at least EUR 64,508 (amount for 2013), the restrictions relating to the employment market, the labor market, manpower agreement and separate employment contract criteria do not apply either.The employee is issued with a work permit with no maximum em-ployment period.

An employee who has already worked as a highly qualifi ed employee for several years can obtain a type B work permit as a managerial employee if his/her position and duties change accordingly.

Formalities to be completedTo apply for a work permit, the following documents are required:

• a power of attorney by the employer in favor of a law fi rm or a consultancy fi rm, if they handle the application;

• a completed work permit application form;• a medical certifi cate issued by a physician accredited by the

Belgian embassy or consulate in the applicant’s home country or last country of residence;

• the employment agreement between the employee and the (foreign) employer;

• a copy of the employee’s national passport (all pages);• a career résumé;• copies of the applicant’s degree certifi cates;• 3 passport-size photographs of the employee for collecting

the work permit;

Highly qualifi ed employees whose annual gross taxable salary is at Highly qualifi ed employees whose annual gross taxable salary is at

Hence, a work permit is generally issued if all the documents

The eight year restriction on the validity of a work permit does The eight year restriction on the validity of a work permit does not apply where the employee is under a contract with a Belgian not apply where the employee is under a contract with a Belgian not apply where the employee is under a contract with a Belgian The eight year restriction on the validity of a work permit does The eight year restriction on the validity of a work permit does not apply where the employee is under a contract with a Belgian not apply where the employee is under a contract with a Belgian

annual salary higher than EUR 64,508 (amount for 2013).annual salary higher than EUR 64,508 (amount for 2013).



• a service agreement between the foreign employer and the Belgian client (if possible).

In the case of an assignment, also:• an assignment letter / agreement to be typed on the employ-

er’s letterhead paper;• a proof of sustained contribution to the home country’s social se-

curity system (in general by means of a ‘certifi cate of coverage’).

ValidityA work permit can be obtained for a maximum period of 12 months, and is renewable annually until the maximum period elapses.

How long does it take?Once the application has been fi led, it takes about 3 to 4 weeks for the work permit to be issued.

Remark concerning new EEA member statesAs mentioned before, citizens of Romania, Croatia and Bulgaria still require a work permit in order to be able to legally work in Belgium.

A simplifi ed procedure for obtaining a work permit is possible for certain categories of employees that are considered diffi cult to recruit (knelpuntberoepen/postes à pourvoir).

According to this simplifi ed procedure, the work permit has to be issued within fi ve working days upon production of the employment agreement and the national passport.Each region has prepared a list of such jobs. Some examples are:

• engineers,• accountants,• product and marketing managers,• technicians,• translators,• bakers.

Exemptions from having to obtain a work permitIn principle, all non-EEA nationals working in Belgium have to be in possession of a work permit. Some categories of persons are exempted.

The most important categories are:• individuals holding an unrestricted residence permit

for Belgium;

A work permit can be obtained for a maximum period of 12 months, A work permit can be obtained for a maximum period of 12 months, and is renewable annually until the maximum period elapses.and is renewable annually until the maximum period elapses.



• spouses of Belgian or EEA nationals under certain conditions;• individuals employed within the framework of a service agree-

ment between two EEA member state companies;• foreign managerial employees coming to work in Belgium

provided that they are to be employed by the Belgian head-quarters (i.e. under a local employment agreement), that their gross annual salary exceeds EUR 64,508 and under other specifi c conditions;

• foreign employees assigned to Belgium by their foreign employer to attend academic/scientifi c congresses or closed meetings (‘business trips’), provided that the duration of their stay in Belgium does not exceed the length of the congress, or (in case of business trips) 60 days per calendar year, with a maximum of 20 consecutive calendar days per meeting;

• foreign employees assigned to Belgium by their foreign em-ployer to receive intra-group classroom training, provided that the training does not exceed three months. The exemption is limited to the actual duration of the training and a number of strict conditions have to be complied with, mainly relating to the nationality of the persons concerned (there is a limited list of nationalities) or the place where the employer has its principal place of business;

• research workers sent to Belgium to carry out research with a recognized research institute as part of a visiting agreement.

gross annual salary exceeds EUR 64,508 and under other gross annual salary exceeds EUR 64,508 and under other gross annual salary exceeds EUR 64,508 and under other



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Immigration - Tax - Social Security - Law - Social Formalities

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The exemption is limited to the duration of the research pro-ject as set down in the visiting agreement between the subject and the institute:

• specialized technicians coming to Belgium to assemble/in-stall foreign-built machinery/equipment (for up to eight days);

• specialized technicians coming to Belgium to repair or main-tain foreign-built machinery/equipment (for up to fi ve days per calendar month);

• persons testing prototypes for a maximum period of four weeks per calendar year.



1.3. Professional card

A. The individual is a national of one of the EEA countries or SwitzerlandThe EU treaty provides for the free movement of persons within the European Union. As a consequence, self-employed persons who are citizens of one EU member state are, in principle, free to work in another member state without a professional card.

This principle of free movement also extends to the following countries, which are not part of the EU but members of the EEA: Iceland, Norway and Liechtenstein. It also extends to Switzerland.

B. The individual is a non-EEA nationalAll non-EEA nationals carrying on a self-employed business activity in Belgium must be in possession of a professional card before starting to work.

This also means that any non-EEA national working in Belgium as a director (in French: administrateur/in Dutch: bestuurder) of a Belgian company, whether or not he/she earns fees, and who thus qualifi es as carrying on a self-employed business, must also have a professional card.

There are exemptions to this, e.g. self-employed persons coming to Belgium within the framework of a business trip for a maximum of three months. If an exemption applies, no profes-sional card needs to be applied for.


the European Union. As a consequence, self-employed persons the European Union. As a consequence, self-employed persons who are citizens of one EU member state are, in principle, free who are citizens of one EU member state are, in principle, free to work in another member state without a professional card.



C. Procedure for obtaining a professional cardAn application for a professional card can be fi led:• at the Belgian diplomatic or consular representation in the

country of residence of the applicant;• at a recognized business registration agency (“erkend on-

dernemingsloket” / “guichet d’entreprise agree”) if the applicant already legally resides in Belgium.

Foreigners who already hold an unrestricted resident permit (“electronic B or C card”) are exempt from the professional card.

Please note

that a key factor in obtaining a professional card is to demon-strate the economic benefi t of the business (e.g. a major investment in Belgium) or the creation of job opportunities in Belgium. The importance of the business may also be judged on its social, cultural, artistic or sporting contribution. The sector which the applicant wishes to be active in may not already be saturated (e.g. phone shops).Provided this criterion is met, a professional card may be is-sued within the span of a few months.

The economic benefi t can be proven by one of the following:• useful investments;• creation of new jobs;• positive economic effects on Belgian companies;• stimulation of export;• innovative or specialized character of the activity;• etc.

D. Documents neededGenerally, the following documents are needed to apply for a professional card, and for the visa D based on the professional card. Note that each embassy/consulate may have other re-quirements needing to be checked upfront.• two offi cial application forms;• a passport valid for at least 12 months at the time of application;• an original medical certifi cate;

◊ The medical examination must be carried out by a physi-cian who is recognized by the Belgian embassy/consulate general; ◊ The medical certifi cate must be stamped and signed by the physician;

• a detailed career résumé;• certifi ed copies of professional diploma(s) (or educational

already legally resides in Belgium.already legally resides in Belgium.

that a key factor in obtaining a professional card is to demon-strate the economic benefi t of the business (e.g. a major strate the economic benefi t of the business (e.g. a major



certifi cates/certifi cates attesting the knowledge of foreign languages);

• a letter describing and justifying the professional activities the individual wishes to carry out in Belgium;

• a certifi cate of good conduct together with a translation issued within 3 months prior to the application date. In cases where the applicant has resided in another country during the last 5 years, the individual should also submit a certifi cate issued by the relevant authorities in that foreign country;

• a certifi cate of knowledge of business management (business charter) or an affi davit in the case of an exemption from the need for this declaration;

• specifi c economic information (e.g. brochures, press releases) relating to the company in Belgium and other countries to prove the economic importance of the application (if possible);

• an application fee will be required together with an issuance fee.

If the applicant has been appointed as a company director, thefollowing documents should also be provided:• the deed of incorporation of the company in Belgium;• a copy of the minutes of the meeting of the board of directors

appointing the applicant to the position of director.

E. ValidityA professional card has a maximum validity of 5 years. It is however possible to receive a professional card with a validity shorter than 5 years, depending on the decision of the authori-ties. It can be renewed once the initial validity period has ended.

G. How long does it take?The authorized civil service of the Ministry of Economy takes the decision on whether or not to issue professional cards.

There is no offi cial maximum period in which the decision must be taken. Usually, it can take 3 to 4 months to receive the professional card. If the application is refused, the applicant can appeal within a period of 30 calendar days.When the appeal fails, the applicant can apply again after 2 years for the same activity under the condition that he/she can put forward a ‘new’ element that can prove the economic benefi t of the proposed activity.

H. How much does it cost?The applicant is required to pay EUR 140 when fi ling the appli-cation for a professional card.

There is no offi cial maximum period in which the decision There is no offi cial maximum period in which the decision



1.4 Residence permit formalities for non-EEA nationals

Obtaining a visa to enter Belgium

There are different types of visa. The type of visa that has to be ap-plied for depends on the purpose and length of the stay in Belgium.

In the case of a stay in Belgium of less than 90 days within any giv-en six-month period, the non-EEA national might need a short term visa C in order to enter Belgium. This, however, depends on the nationality of the individual concerned as citizens of e.g. the USA, Japan, Australia, Canada, etc. can enter Belgium on the basis of their national passport for a short stay. Nationals of e.g. China, India, Russia, etc. have to apply for a C type Schengen visa.

Statue of “Manneken Pis”in Brussels

City of Brussels by night



In the case of a stay in Belgium of more than 90 days within any given period of 6 months (can be interrupted), any non-EEA nation-al has to hold a visa D (work visa, family reunion, studies, etc.) in order to enter Belgium and to obtain a Belgian residence permit (electronic residence card A), which is a necessary formality (see further).

This application for the visa D has to be lodged at the Belgian Em-bassy or Consulate in the home country or last country of residence and can only be fi led after delivery of the work permit / professional card and prior to the arrival in Belgium.

The most important documents needed by the employee are:

• a medical certifi cate issued by a physician recognized by the Belgian Embassy/Consulate and legalized;

• a certifi cate of good moral conduct covering the last 5 years duly legalized and translated;

Gravensteen castle in Ghent



• visa application forms;• a national passport;• the work permit / professional card.

Note: Every Embassy/Consulate has its own requirements and might ask for additional documents.For family members separate documents are required.

Depending on the Embassy or Consulate concerned and on the na-tionality of the employee concerned (e.g. some Embassies or Con-sulates are not authorized to issue automatically such a visa and must apply first for approval from the relevant Belgian Foreigners Office), the visa D can mostly be obtained within one working week.

1.5 Registration with the relevant Belgian municipality

A. Declaration of arrival - Short stayIn the case of a stay in Belgium of less than 90 days within any given period of 6 months, non-EEA nationals have to be in possession of a declaration of arrival (Annex 3) delivered by the local municipality. This declaration of arrival will be delivered on the basis of the visa C or national passport (depending on the nationality) and has to be applied for within 3 days after the individual’s arrival in Belgium.

B. Obtaining a Belgian residence permit - Long stayIn case of long stay in Belgium (i.e. more than 90 days with-in any given period of 6 months), a Belgian residence permit (‘electronic card A’) has to be applied for. Within 8 days after his/her arrival in Belgium, the employee has to register with the municipality of the place where he/she intends to reside.

As each municipality may have its own specific requirements, it is advisable to check what they are before going to the town hall.

The following documents should normally be presented, and a registration fee is payable:

• the employee’s original work permit;• a copy of the registered rental agreement;• the employee’s national passport bearing the visa D;• 3-4 passport-size photographs;• the individual’s birth certificate legalized according to the

internal procedures of the country that issues the document.


If this certifi cate has not been drawn up in Dutch, French, English or German it should be translated by a sworn transla-tor into one of these languages.

A certifi cate of registration in the foreigners register (electronic card A ) will be delivered to the employee once the above has been complied with and a police investigation is completed. This elec-tronic card A will, in principle, be valid for a maximum duration of 1 year (depending on the period of validity of the work permit/pro-fessional card). It is renewable for a maximum duration of 1 year, e.g. when the work permit/professional card has been extended.

Note: Under an exceptional procedure (article 25/2 of Royal Decree 8 October 1981), the Belgian residence permit for a salaried work-er, holder of a work permit, can also be applied for directly at the Belgian municipality without fi rst obtaining a visa D. Please note that in such a case, it is essential that the certifi cate of good moral conduct covering the last 5 years should be provided when register-ing without the visa D.

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1.6 European Blue Card

On August 31, 2012, the Belgian Official Journal published the changes to the residence and work permit legislation leading to the introduction of the European Blue Card (EBC). This all came into effect on September 10, 2012.

Advantages of the EBC for highly qualified third-country employees

• It offers them the opportunity not only to reside in Belgium but also to work here based upon one single document (which is the so-called electronic ‘H’ card).

• It allows more flexible access to the European territory for them and their families.

• It allows them and their families to leave the country (for a maximum of 12 months) and return to their country of origin without losing their status.

Conditions for being granted an EBC in Belgium

• The employee must hold a high degree of education for which the study course extended over at least three years.

• The employee must have signed an employment contract with a Belgian employer for an open-ended period or a term equal to or greater than one year.

• The employee’s gross annual pay must amount to at least EUR 49,995 (2013). For highly qualified persons who hold a type B work permit, this figure is EUR 38,665 (2013). The figure is adjusted annually.

• The employee must be able to produce valid travel documents and must have health insurance for the periods during which he/she is not covered under the terms of his/her employment contract.

• The employee must not pose any danger to public order or national security.

An important category of employees who have no right to an EBC is that of nationals of third countries who are on a posting contract. See also above the need to have a local contract in the host country.

Validity of the EBC

The validity of an EBC comprises two periods: a first (one-off) re-newable period of 12 months, followed by a period of three years.

After five years’ legal residence within the EU, of which the last two



years were in Belgium, an employee in possession of an EBC can apply to qualify as a long-term resident and be issued with a new “type D” electronic EC residence permit card for long-term resi-dence.

Mobility within the European Union

An employee who holds an EBC and the members of his/her family may travel within the Schengen Area and reside there for a period of three months.

Once the employee has held an EBC for 18 months, he/she and his/her family may travel to another member state to live and work without the need for a separate visa if the employee meets the EBC conditions laid down by the member state in question.

A third-country national with an EBC may be absent from Belgium for 12 consecutive months without losing his/her status.

What about the current type B work permit?

The current type B work permit for highly qualified employees will continue to exist alongside the EBC. Hence, in practice, the EBC adds little to the already existing flexible arrangements in Belgium for highly qualified or managerial employees.

The exemption from a type B work permit only applies to foreign nationals who hold an EBC issued by Belgium. This concretely means that e.g. an Indian national in possession of a Dutch EBC who has a job offer from a Belgian employer still needs to apply for a new Belgian EBC before he/she can start working.

The employee also has to comply with all the above conditions for being recognized as a highly qualified employee within the meaning of the directive.



Immigration flow chart - Working in Belgium: the 10 steps

ApplicantWork Permit

(WP) AuthorityMunicipality Local Police

In the applicant’s country of origin

q q

❶ Prepare documents for

application

❷ Submit application for

a WPu

q

❹ After ap-proval

of the WP, submit a visa application

❸ Handling of application

+sends the WP

to the local municipality

q

❺ Collect visa from embassy or consulate

Upon arrival in Belgium

❻ Application for a Residence

Permit (RP)at the town

council

u

❼ Investigate application

+ inform the local police

❽ Performs police check

within 14 working

days

q

❿ Collects the RP from the town council

t

❾ Sends con-vocation letter for picking up

the RP





Personal taxformalities

2.1 General

In order to determine the Belgian income tax liability of the posting or transfer of an employee to Belgium, it is essential to establish whether the employee will be treated as either a tax resident of Belgium or as a tax non-resident of Belgium.

The Belgian Income Tax Code (BITC) defi nes Belgian tax residence.

According to Belgian Tax Law, an individual qualifi es as a Belgian tax resident if he/she has established his/her domicile or the seat of his/her wealth in Belgium (BITC, article 2 §1 (1°)(a)).

The term domicile is defi ned as the place where the taxpayer effectively and enduringly resides, where his family lives and where personal contacts are maintained (clause 3/7 of the Commentary on the BITC).

The seat of wealth is the place where the taxpayer manages his/her assets or where the centre of his/her business activities is locat-ed (not necessarily the place where his/her property/assets are situated).

Belgian Tax Law lays down a refutable legal presumption that an individual has his/hers domicile or the seat of his/her wealth in Belgium when he/she is registered in the Belgian population regis-ter of the municipality where he/she resides.

With respect to the tax residence of a married couple (BITC, article 2 §1 (2°)), a special rule applies. The tax residence of a married couple is irrefutably deemed to be situated in Belgium if the family residence is located there. However, Belgian Tax Law includes no contrary provision (i.e. in cases where the family residence is located outside Belgium).

The question of ‘family residence’ often comes down to a factual analysis. For the purposes of Belgian Tax Law, a family residence

2

The term domicile is defi ned as the place where the taxpayer The term domicile is defi ned as the place where the taxpayer

The seat of wealth is the place where the taxpayer manages his/her The seat of wealth is the place where the taxpayer manages his/her



can be defined as the centre of day-to-day family life or as the cen-tre of household interests.

2.2. Belgian taxation of residents

Residents of Belgium are taxed on their worldwide income. Tax-able income comprises real estate income, income from movable property, miscellaneous income and earned income. For each of these categories, there are specific rules for the calculation of the net income. These rules are described below.

A. Earned incomeEarned income is divided into six subcategories:• salaries and wages from employment;• company directors’ remuneration;• profits from agricultural, industrial and commercial activities;• proceeds from a self-employed profession;• profits and proceeds from former occupational activities;• replacement income: pensions, early retirement payments,

unemployment benefit, health insurance benefits, etc.

In principle, earned income comprises wages, salaries and other remuneration (including benefits in kind) received on account of an occupational activity. Reimbursements of expenditure incurred on behalf of an employer are not considered earned income.

Benefits in kind are in principle taxed on the actual value to the beneficiary. In some cases, the benefit in kind is taxed on a lump-sum basis fixed by law (car or housing provided by the company, etc.).

Stock options granted by the employer are considered earned income and are taxable upon grant (i.e. on the 60th day following the day of the offer) if the options are accepted in writing within this 60-day period. If the options are taxable upon grant, the benefit in kind resulting from the grant of the option is deter-mined on a lump-sum basis. The resulting amount is taxed at the marginal Belgian income tax rate.

Net income is determined in six stages• deduction of compulsory social security contributions;• deduction of actual or lump-sum professional expenses;• economic exemptions, notably tax measures to promote in-

vestment and/or employment;• clearance of losses;



• award of the ‘assistant spouse’ quota and marital quotient;• compensation of losses between spouses.

Belgian income tax ratesEarned income (together with real estate income, ‘current’ alimo-ny payments (see below) and – in very exceptional cases – invest-ment income) is taxed at the following progressive tax rates:

Belgian tax brackets in EUR (Income year 2012 – Assessment year 2013)

Taxable incomeTax

bracket% Tax due

Tax on the

bracketTotal

0 8,350.00 8,350.00 25% - 2,087.50 2,087.50

8,350.00 11,890.00 3,540.00 30% 2,087.50 1,062.00 3,149.50

11,890.00 19,810.00 7,920.00 40% 3,149.50 3,168.00 6,317.50

19,810.00 36,300.00 16,490.00 45% 6,317.50 7,420.00 13,738.00

< 36,300.00 50% 13,738.00

Lumpsum professional expenses (EUR)

Taxable income % Expense on the bracket

Total

1 5,490.00 28.7% 1,575.63 -

5,490.00 10,910.00 10% 542.00 2,117.63

10,910.00 18,150.00 5% 362.00 2,479.63

18,150.00 61,829.00 3% 1,310.37 3,790.00

In addition to the above, municipal taxes are due that range from 0% to 10% on the principal amount of income taxes charged, calculated on the basis of the above brackets.

Each taxpayer is also entitled to one or more standard tax allowances (depending on his/her personal situation) as shown below (amounts for income year 2012 – amounts still to be multiplied by the applicable tax rate in order to determine the exact benefit). Additional deductions may be granted depending on the taxpayer’s personal situation.



B. Miscellaneous incomeThis category of taxable income includes all income with the common characteristic of not being earned by performing an occupational activity. The following income (non-limitative list) is considered as miscellaneous income (under certain con-ditions): alimony payments, occasional profits and proceeds, prizes and subsidies, capital gains from (un)developed property, capital gains from shares, except if realized within the normal management of one’s private investment portfolio and income from a sublease or the transfer of a lease.

Except for ‘current’ alimony payments (meaning no arrears of alimony), these types of miscellaneous income are taxed at sep-arate tax rates (varying from 10% to 33%). Communal taxes are also to be paid, ranging from 0% to 10% on the principle amount of income tax due. ‘Current’ alimony payments are included in aggregated taxable income (cf. above) to the extent of 80%.

2.3 Belgian taxation of non-residents

A. General principlesA Belgian non-resident, i.e. a person who has not established his/her domicile or the seat of his/her wealth in Belgium, is only taxable on that part of his/her income that is received from Belgian sources. Depending on the type of income received from

Standard tax deductions in EUR (income year 2012)

Standard tax deduction

If taxable income not over 25,270.00

7,070.00

If taxable income between 25,270.00 and 25,540.00

7,070.00 less difference between taxable income and 25,270.00

If taxable income above 25,540.00

6,800.00

Marital quotient

30% 1 child 1,440.00

Income limit 32,700.00 2 children 3,720.00

Limit 9,810.00 3 children 8,330.00

4 children 13,480.00

5 children 18,630.00

+ each child 5,150.00

< 3 years old 540.00



Belgian sources, the individual may be required to file a Belgian non-resident income tax return. In some cases, the withholding tax or real estate tax paid will be final.

Employees who work in Belgium without establishing tax res-idence will in principle only be taxable in Belgium if the salary cost is paid/borne by a Belgian tax resident or if they spend more than 183 days in Belgium during the calendar year/a period of 12 consecutive months. Profits from self-employment activity will in principle only be taxable in Belgium if derived by means of a Belgian establishment or result from activities performed in Belgium.

The taxable income of a non-resident is subject to tax at the same rates as that of a resident. If a non-resident also receives other Belgian-source income, such as real estate income or director’s remuneration from a Belgian company, this income is added to the income taxable in Belgium. Investment income sourced in Belgium or abroad is excluded from the taxpayer’s aggregate taxable income but, in certain circumstances, can be subject to Belgian withholding tax. If the non-resident has a place of abode in Belgium or receives 75% of his/her world-wide professional income from a Belgian source (or has treaty protection), he is entitled to the same deductions as a resident. If not, the standard deductions are disregarded or limited.

B. Belgian special tax regime - GeneralUnder certain conditions, a foreign executive temporarily as-signed to Belgium within an international group of companies may qualify for the special taxation regime. The executive is then treated as a non-resident for Belgian tax purposes, liable to Belgian personal income tax only on his/her Belgian-source income.Expatriates who may qualify for the application of the special tax regime are mainly management personnel, research per-sonnel, and foreign personnel without managerial responsibili-ties who are so highly specialized that recruiting for their posts in Belgium is very difficult, if not impossible. To qualify, certain criteria have to be met:

• The individual must be employed in a qualifying entity or branch. This includes a scientific research center or labora-tory or a business under foreign control or part of an inter-national group. Their employment could be in a control or coordination office of a multinational group of companies;

• The employment in Belgium must be temporary in nature;



• The center of the expatriate’s economic and personal inter-ests must not be Belgium.

An expatriate newly transferred to Belgium is presumed to be a ‘non-resident’ and not yet established as a Belgian inhabitant. He/she must, however, provide supporting evidence in a specific application for non-resident status.

Belgian special tax regime - BenefitsThe special tax regime recognizes that payments made by an employer to an expatriate fall into one of two distinct categories:

• Base salary and foreign service premium, both of which are taxable in Belgium to the extent that they relate to services performed in Belgium;

• Expenses reimbursed by the employer, some of which are not taxable (up to certain limits) for the expatriate and are tax deductible for the employer.

Non-taxable allowancesAn expatriate is not taxed on reimbursements of supplementary expenses that have incurred as a result of his/her recruitment, transfer or posting to Belgium, whether paid as lump sum allowances or as specific reimbursements of document-sup-ported outlays. The Belgian tax authorities tend to accept as non-taxable the reimbursement of costs that would not have incurred if the expatriate had continued to work in his/her home country. These non-taxable allowances are divided into two parts: non-recurring costs (no limitation) and recurring costs (tax-free up to a limit of EUR 11,250.00 or EUR 29,750.00 for expats working in a control or coordination office of a multina-tional).

Non-recurring costs and expenses that are non-taxable include:• costs and expenses incurred in moving to Belgium;• costs of preparing the accommodation in Belgium for occu-

pancy;• costs and expenses incurred when moving out of Belgium.

Recurring costs and expenses that are non-taxable (within cer-tain limits, except for school fees) include:• the supplementary cost of accommodation and the cost of liv-

ing here compared with the same costs in the home country;• school fees (primary and secondary education);• annual travel costs for the expatriate and his/her family to

their home country (air travel, economy class);



• losses incurred by his/her inability to rent out, or to obtain a normal market rent for, accommodation retained in his/her home country;

• traveling expenses resulting from emergencies (death or seri-ous illness of close members of the employee’s family or of his/her spouse);

• exchange rate fluctuations;• tax equalization;• traveling expenses of children attending school abroad, in-

curred for them to visit their parents, not exceeding two trips per year.

Travel exclusionIn addition to the non-taxable allowances described above, the part of the salary relating to services that are rendered outside Belgium (and that can be identified as such) is not subject to Belgian tax. In the absence of any other specific designation, the proportion of overall remuneration relating to work days spent abroad is excluded from taxable income.The following calculation is made to determine the ‘default’ exclusion for services rendered abroad:

Travel exclusion =

number of working days spent abroadtotal number of working days during the period

The total working days in the (tax) period (in Belgium and abroad) may not normally include Saturdays, Sundays or Bel-gian public holidays, days of sickness or annual holidays. When calculating the number of working days spent abroad, the day of departure is considered spent in Belgium, with the exception that one-day trips abroad are accepted as qualifying days spent abroad. The day of the return trip is considered as being spentoutside Belgium. In addition, weekends and public holidays are excluded even if they are spent abroad on business trips. The expatriate must provide evidence of the number of working days spent abroad (assignment instructions, hotel bills, air tickets with boarding pass, passport visas, etc.).

2.4 Tax filing obligation

In general, employees working and taxed in Belgium need to file a Belgian income tax return each year. The fiscal year coincides with the calendar year concerned. The tax return is issued to the em-



Central station Antwerp

ployee individually by the Belgian tax authorities after the calendar year has ended. For Belgian tax residents, the tax return should in principle be fi led before June 30 of the year following the income year. For non-residents of Belgium, the due date is usually put back to September (or later) of the year following the income year. Please bear in mind that a tax fi ling obligation may also exist in the home country.

Guide for foreigners working in Flanders-Belgium

Central station Antwerp



social law formalitiesObligations and social documents

Although the parties are in principle free to choose what law applies to the employment contract entered into between them, there is a gen-eral rule that each employer that temporarily or partly employs staff in Belgium is required to comply with the labor, salary and employment conditions as laid down by Belgian law. (Administrative regulations or collective bargaining agreements that carry criminal penalties (Bel-gian Act of 5 March 2002 implementing the EU Directive 96/71). However, the Act does not prevent the application of more favorable foreign labor, salary and employment conditions.

The employer must, among others, comply with the following con-ditions during the period of employment in Belgium:

• the rules on annual holidays and public holidays;• the rules on the protection of salary (including minimum pay,

indexation, end-of-year bonuses);• all matters governed by the Employment Act of 16 March 1971

(including working time, overtime);• the rules on well-being and safety at work;• all collective bargaining agreements declared to be generally

binding by Royal Decree.

The foregoing mandatory provisions of Belgian law must always be adhered to as from the first day of employment in Belgium. For the sake of completeness, note that the Belgian dismissal rules do not fall under the aforementioned definition and will therefore only apply where Belgium has to be regarded as the country of usual employment.Furthermore, the employer has to draw up a number of ‘social’ or employment related documents (see hereinafter).

3.1 Limosa (www.limosa.be)

A (foreign) company employing an employee temporarily or partly in Belgium is required to give notice of the employment (and its

3



anticipated length) via the website of the Belgian National Social Security Offi ce (RSZ/ONSS) before actual commencement of the activities in Belgium.

The upfront notifi cation duty applies particularly to any employee who is employed temporarily or partly in Belgium and who is either usually active in one or more other countries than Belgium or was hired in another country than Belgium. Some categories of foreign employees are however exempt from this notifi cation requirement.

If a notifi cation has been given for a foreign employee employed in Belgium, the employer is exempted from having to draw up a number of social documents during 12 months (see below, point 3). During this period, the employer is not required to draw up and keep a staff register and work regulations. Nor is the employer required to draw up and keep an annual individual account and monthly pay slips, provided that it makes comparable documents prepared according to the laws of the country of origin available for the inspection.

If the employer fails to make the notifi cation, the organization that the employee has come to work for in Belgium is required to give electronic notice of the identity of the person concerned to the National Social Security Offi ce before the commencement of the employment. Furthermore, the unregistered employee may be denied entry into Belgium.

If the duty of notifi cation is not fulfi lled, both the employer and the user are liable to criminal penalties. Some categories of individuals are exempted from the requirement to fi le a Limosa declaration. The most important categories are:

• Employees and self-employed persons who attend scientifi c congresses in Belgium.

• Employees and self-employed persons who attend meetings in a closed circle in Belgium, not exceeding a total of 60 days per calendar year at such meetings in Belgium. Furthermore, no such meeting may last longer than 20 consecutive calen-dar days.

• Employees and self-employed persons who are sent to Bel-gium for the initial assembly and/or the fi rst installation of an item, not exceeding 8 days. It must concern qualifi ed and/or specialized employees of the company delivering the item or the self-employed person delivering the item.

• Specialized technicians carrying out urgent repair or mainte-nance works to machines or equipment, no longer than 5 days per month.

Specialized technicians carrying out urgent repair or mainte-Specialized technicians carrying out urgent repair or mainte-nance works to machines or equipment, no longer than 5 days nance works to machines or equipment, no longer than 5 days

specialized employees of the company delivering the item or specialized employees of the company delivering the item or specialized employees of the company delivering the item or

gium for the initial assembly and/or the fi rst installation of an gium for the initial assembly and/or the fi rst installation of an gium for the initial assembly and/or the fi rst installation of an

Employees and self-employed persons who attend scientifi c Employees and self-employed persons who attend scientifi c

Employees and self-employed persons who attend meetings Employees and self-employed persons who attend meetings in a closed circle in Belgium, not exceeding a total of 60 days

congresses in Belgium.congresses in Belgium.



• Scientists/researchers participating in a scientifi c program in a university or scientifi c institution in Belgium, no longer than 3 months per calendar year for this purpose.

• Employees who are employed at any foreign public services organistaion as a statutory or contractual staff member.

• Employees of an international institution of public law that is established in Belgium.

• Members of a diplomatic or consular mission.

For your convenience, please fi nd below a schematic overview regarding the LIMOSA obligation. For more information and exam-ples, please check: www.limosa.be.

Scope of application of LIMOSA rules

You are a non-Belgian-resident employer

You send your employee to Belgium on a temporary assignment

You have hired an employee whom you permanently employ only in Belgium :

You have hired an employee whom you employ partly in Belgium and partly in other countries

NOTIFICATION REQUIRED

For a defi ned period

For an undefi ned period NOTIFICATION

REQUIREDNOTIFICATION REQUIRED

NO NOTIFICA-TION REQUIRED

You are a Belgian-resident employer

You are under a notifi cation obligation only if you have hired an employee whom you do not habitually employ in Belgium but whom you want to work or perform services in Belgium exceptionally and temporarily (whether or not for

100% of that employee’s work (schedule)

Exemption from the obligation to keep “social documents”As a result of fi ling the LIMOSA declaration, the employer will be exempted from the obligation to draw up the social documents listed below for a period of 12 months.

After the initial 12-month period, the employer will still need to draw up the aforementioned documents and appoint a “social rep-resentative” (see below).

Members of a diplomatic or consular mission.

Employees who are employed at any foreign public services Employees who are employed at any foreign public services

Employees of an international institution of public law that is Employees of an international institution of public law that is Employees of an international institution of public law that is

Scientists/researchers participating in a scientifi c program in Scientists/researchers participating in a scientifi c program in



City of Ostend by night



3.2 Social documents and social representative

The social documents have to be kept by a duly authorized individu-al residing in Belgium (i.e. the sociaal mandataris/mandataire social, or authorized representative for employment matters).

The authorized representative is in charge of keeping the work regulations, the personnel register and the individual accounts for the foreign employer.

Work regulationsEach company must draw up work regulations according to Belgian law. The work regulations contain clauses regarding the salary and working conditions applicable within the company. A specific legal procedure must be adhered to when drawing up the work regula-tions.

Staff registerFor the staff that the foreign employer is going to deploy in Belgium to carry out certain tasks, a staff register has to be kept by the social representative.

Individual payroll accountsThese documents must be drawn up for each employee working in Belgium and must be issued to the employees within legally specified time limits. The individual account gives an overview of the salary paid during the past calendar year for work performed in Belgium. It also mentions the (foreign) social security contribu-tions withheld from the employee’s gross salary and any income tax deductions at source. In the case of a new employee, an individual payroll account mentioning specific limited details must already be issued within two months.

Moreover, at the time of each monthly salary payment, a Belgian pay slip must be issued and handed over to each employee working in Belgium, even if the salary is paid abroad.



Belgian beer is world-famous



4socialsecurity legislation

Employees who work in Belgium are in principle covered by the Belgian social security system (work state principle). However, depending on the employment situation and the nationality of the employee, an exception may apply under which the employee re-mains covered by his/her home social security system. In general, the exception may apply to employees employed in the EU/EEA member states or Switzerland or to employees employed in a coun-try having a social security treaty with Belgium.

If an employee working in the EEA for an EEA-based employer (or place of business – in Dutch: exploitatiezetel /in French: siege d’ex-ploitation) is posted to Belgium, he/she can remain covered by the social security system of his/her home country under certain strict conditions (employer authority remains with the home country of employer, prior contribution to the home country social security system, temporary employment in Belgium, etc.) A so-called A1 form must be applied for from the social security authorities of the home country, which serves as proof to the Belgian social security authorities that the employee continues to be covered in his/her home country.

Within the EEA an exception to the work state principle may arise if the employee simultaneously works in Belgium and other EU member states.

In addition, Belgium has concluded social security treaties with the following countries and regions: Algeria, Australia, Canada, Chile, Croatia, India, Israel, Japan, Macedonia, Morocco, the Philippines, Quebec, San Marino, South-Korea, Tunisia, Turkey, Uruguay, and the USA.

Most of the treaties also allow an exception to the work state prin-ciple in case of a temporary posting to Belgium. On the basis of the social security treaty, a certificate of cover can be applied for from the social security authorities of the home country to serve as proof to the Belgian social security authorities that the employee contin-ues to be covered in his/her home country.


Where there is no social security treaty between Belgium and the employee’s home country, the Belgian social security sys-tem will apply, unless there is no link of subordination towards a Belgian or European employer or a place of business of the foreign company. In the latter case, no Belgian social security contribu-tions are due, meaning that, for assignments from a non-EEA and non treaty country to Belgium, the employee can remain subject to his/her home social security regime according to their domestic legislation.

Social security cover

If the conditions allowing the posting of an employee under the home social security regime are not met, the employee will be sub-ject to the Belgian social security system. In the salaried persons’ regime, both employees and employers have to pay contributions to the National Office for Social Security (RSZ - ONSS). Belgian social security contributions (ONSS/RSZ) for an employee are calculated on the full gross salary of the employee:

- 13.07% in employee’s contribution;- approximately 33% in employers’ contributions.

Note that, in certain sectors, some minor differences may exist in the contribution level for employers. The precise percentage of social security contributions due by the employer will thus ulti-mately depend on the applicable joint committee and the number of employees under contract. Furthermore, numerous measures to promote employment in Belgium might reduce the amount of the employer’s social security contributions.The classic social security structure encompasses seven sectors:

• Old-age and survivor’s pensions;• Unemployment;• Insurance for accidents & diseases;• Insurance for occupational diseases;• Family benefits;• Illness and disability insurance;• Annual vacation.









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