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Belgium is tax paradise for nearly 21,000 expats
It is estimated that 20,809 foreign executives, researchers and specialised professionals benefit from a particularly favourable tax regime in Belgium, while avoiding paying taxes in their home country, De Standaard reports. Under the regime, certain expats are required to pay very little income tax.
According to the newspaper, the tax break amounts to more than €1 billion. The specific tax regime was introduced in the early 1980s to provide a way around Belgium's high labour costs for the employees of multinational companies. Belgium will also not provide information about the special arrangement to the expatriates’ home countries, which means they can often avoid paying taxes there.
De Standaard notes that the Belgian Court of Audit already released a critical report on the system more than 10 years ago, but nothing has changed.
Comments
Belgium - tax paradise for expat?!? Very little income tax?!? Hahahaha
What do they think about EU institutions who pay almost no taxes (as far as I know)?
Quertz..... Yup, that is exactly what a great many expats have achieved.
As to the EU mob, they are convinced that the scrap they pay IS tax. I know some who have lived in Belgium for many years and had NO IDEA that some people are paying more than half of their salary in basic income tax.
I have always been of the opinion that they should have a choice....Tax at their home EU country rate or tax in the Country in which they are stationed. Not a special high rate of pay, a special (tiny!) rate of "tax" plus Lord knows how many special allowances!
The way they are paid and taxed is a disgrace and while some efforts have been made to cut the excesses, it still goes on.
Tax paradise? I can not imagine who this paradise applies to! I work for an international firm, and my taxes are also done by a reputable well known international firm that understands the benefits of the "special" tax regime. Before I moved here, I never paid an effective tax rate of over 25%, here it ends up at 50%! The statement that you don't pay taxes in your home country makes it sound like you're not paying taxes at all and that is far from the reality. The only benefit of the special tax regime is that you don't have to pay taxes on your costs to relocate, so that's a benefit to the company, there is some allowance for the difference of housing costs between your home country, and your living accommodations in Belgium, but there is a cap on that, and I believe there is also some allowance for educational expenses that you might incur. From what I know, and I've researched everything that I can, because I'm not crazy about paying half of everything I make in taxes, there is no way the special tax regime for expats is saving on average 50,000 euro per person mentioned in this headline! Not even close!
As far as I know special tax regime gives few hundred euros a month at most. About taxes I know that every extra money I get (bonus, awards, etc.) are getting taxed at 60% rate (I get 40% on hands).
I was in the same boat, quertz. No more.....
Yet another ill-researched article from the superficial Bulletin. Someone needs to learn how to ask questions and get the facts before publishing.
More sour grapes about EU jobs...
EU posts are filled by open competition and all qualified EU citizens are eligible to apply.
I have heard your justification for your bloated salaries and miniscule contributions trotted out too many times to count and it's palpable nonsense.
You cannot justify the tax payer funded gravy train on the basis that their is a competition on order to get a ticket.
The other nonsense is when you guys claim you actually do pay tax. More bull droppings, tax is what the locals pay.
I am stating a fact.
Ranting is no substitute for logical argument.
Incidentally, you should learn to spell before you venture into print.
Why don’t you guys find out the facts before you sound off – see http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1962R0031:... for all the salary rates and read the bit about deductions “social security and pension contributions and the tax, before solidarity levy, payable by an official” ... or are you some of the the 99 out of 100 who didn’t get a job there?
I have seen the link before and I am not trawling through it again. All it confirmed is they are paid more than the going rate and pay far less in deductions than the going rate.
Oh yes, more implications that this must be jealousy. Tell me, why so many applicants?