efficient way to work in Belgium

mp80

Hi
I have just started a contract in Belgium
I am running through my own UK Limited company
My accountant recommends taking the 5k salary and the rest in dividend payments

However, I have read that to do this in Belgium is not as straightforward as it would be in the UK.. so I am a bit worried as Belgium tax is massive compared to the UK (50% income tax + 13% social security) and don't want to get caught out

Has anyone had experience working this way?

alwaysonthego_2

Board guide comment

I am moving this thread to the employment board where you hopefully will get better response.

sarymclary

Hi,
My husband worked,and I lived with him, in Belgium in the mid-90's, and found the best way to protect himself, and avoid the high tax there, and then also back in the UK was to pay a minimum salary each month, and then take dividends every few months. I know that the IR35 ruling was introduced to make that harder to do, and you would need to ensure that your employment contract states the right for your company to replace you as it sees fit.

My husband found an accountant who was very experienced in overseas contractors, and was able to get the UK agency who placed him in Belgium, to pay him in £ sterling, and then have his money wired into a Belgium account, but I think that enabled him to pay UK tax. The law could have changed even more since then, however, so I would advise you seek some professional advice.

mp80

Hi,
Sorry for the late reply
My contract is out of IR35 as it's a Belgium agency
I can't get a bank account in Belgium as I don't have an ID (nor do I want one) so I am paying back into my UK account in Euros, and paying an absolute minimum salary which is under the personal allowance in both the Belgium and UK tax regimes, so it should (hopefully) be OK!