CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Sommer / Summer 2025 Key considerations for cross-border employment in Belgium Author: Sofie Jacobs, International Tax Law, EUREGIO Law & Tax Belgium is a strategic business hub. Thanks to its central location in Europe, it offers easy access to neighbouring countries and even the United Kingdom. Moreover, Brussels is home to some of the largest EU institutions, further enhancing the country's business appeal. Consequently, employing workers in Belgium can present significant opportunities for business expansion. However, this also involves navigating various legal and regulatory requirements. Drawing on our experience as Belgian lawyers, we outline the key considerations to which particular attention should be paid when employing cross-border workers in Belgium. I. Administrative formalities When posting an employee to Belgium, a series of administrative procedures must be followed. These requirements can vary depending on the nature of the business activity. The most important formality is the Limosa declaration. This is a mandatory declaration that nearly every employee and self-employed person coming to work in Belgium, who is not subject to Belgian social security, must complete. Introduced by the Belgian authorities in 2007, this declaration allows them to control who is working in Belgium. Failure to comply with this obligation results in both criminal and administrative sanctions for the employer of the posted worker. The Limosa declaration applies to employees who are usually employed in a country other than Belgium, but who are working temporarily in Belgium. It also applies to foreign self-employed individuals intending to work in high-risk sectors in Belgium, such as construction and cleaning. There are, however some exceptions to the Limosa requirement based on the purpose and duration of the stay in Belgium. These exceptions include, among 28
CONVINUS Global Mobility Insights - Sommer / Summer 2025 others, academic conferences, international transport, urgent repair and maintenance work, small-group meetings, installation and assembly, as well as athletes, artists, scientists, personnel of international institutions and diplomats. Lastly, depending on the specific sector and activities of each company, additional formalities may apply. For instance, construction companies must, under certain conditions, declare their work and register their posted workers via the Checkin@work application, and their employees must wear a Construbadge. II. Permanent establishment Another important practical consideration is that employers, by posting employees in Belgium, may establish a permanent establishment under the terms of the applicable double taxation treaty. If this happens, the employer must pay corporate tax in Belgium (at a flat rate of 25%) on profits earned there. In general, there are three types of permanent establishment. The first type is a material permanent establishment, which exists when a foreign company has a physical presence in Belgium. This can be either owned or rented. Examples of material permanent establishments include offices, factories and workshops. Therefore, even renting an office for a posted employee could result in Belgian corporate tax obligations. The second type is a personal permanent establishment, which arises when an employee of the foreign company is employed in Belgium and authorised to conclude contracts on behalf of the company. This includes managerial staff and sales representatives. In such cases, the simple act of hiring these individuals in Belgium can be sufficient to establish a personal permanent establishment, triggering Belgian corporate tax obligations. The third type of permanent establishment comprises construction projects and installation works exceeding 12 months in duration, although this threshold may differ in some double taxation treaties. If this threshold is met, the company is subject to Belgian corporate tax on profits generated from activities carried out in Belgium. 29
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