Contractors in Belgium can be set up in 2 ways, Employed and Self Employed.
Contractors should be engaged in Belgium as fixed-term employees with income fully processed through the local payroll.
This is the most compliant and preferred form of engagement in country.
In some cases, it may be possible for contractors to be engaged under the self-employed model. This is available to truly independent contractors who will typically provide services as sole traders/sole proprietors. The contract executed should be clearly for self-employed consultancy (or similar), but most importantly, what happens in practice needs to match what the contract states.
Tax year – the tax year is the calendar year for individuals
Immigration – nationals of the EU, EEA and Switzerland do not require a work permit, but are required to obtain a residence permit if staying for longer than three months.
Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions
Limosa notification – this requirement is specific to foreign workers who will be employed in Belgium and needs to be completed prior to the start of the activities.
A Dimona registration/de-registration at the start and end of the assignment is required from an employee to make sure social security and tax authorities are aware of the individual’s employment.
Contract – A fixed-term contract can be used in Belgium and it must be in writing, clearly specifying the end date.
A fixed-term contract can have up to three successive extensions (so four contracts issued in total). Each contract (and each subsequent extension) must last at least three months, with a maximum total duration of two years (that is the combined duration of the original contract plus all extensions).
Employers social security – contributions are 25% of the gross salary with no income ceiling. Some other contributions also apply, things such as unemployed contributions of 1.6%, company closure fund 0.17% and the childcare and paid educational leave fund of 0.05%.
Employees social security – contributions apply to gross income at the rate of 13.07% plus a special contribution with a maximum yearly contribution of €731.28