CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Sommer / Summer 2025Key considerations for cross-border employment inBelgiumAuthor: Sofie Jacobs, International Tax Law, EUREGIO Law & TaxBelgium is a strategic business hub. Thanks to its central location in Europe, itoffers easy access to neighbouring countries and even the United Kingdom.Moreover, Brussels is home to some of the largest EU institutions, furtherenhancing the country's business appeal. Consequently, employing workers inBelgium can present significant opportunities for business expansion. However,this also involves navigating various legal and regulatory requirements. Drawingon our experience as Belgian lawyers, we outline the key considerations to whichparticular attention should be paid when employing cross-border workers inBelgium.I. Administrative formalitiesWhen posting an employee to Belgium, a series of administrative procedures mustbe followed. These requirements can vary depending on the nature of the businessactivity.The most important formality is the Limosa declaration. This is a mandatorydeclaration that nearly every employee and self-employed person coming to workin Belgium, who is not subject to Belgian social security, must complete.Introduced by the Belgian authorities in 2007, this declaration allows them tocontrol who is working in Belgium. Failure to comply with this obligation results inboth criminal and administrative sanctions for the employer of the posted worker.The Limosa declaration applies to employees who are usually employed in acountry other than Belgium, but who are working temporarily in Belgium. It alsoapplies to foreign self-employed individuals intending to work in high-risk sectorsin Belgium, such as construction and cleaning.There are, however some exceptions to the Limosa requirement based on thepurpose and duration of the stay in Belgium. These exceptions include, among28
CONVINUS Global Mobility Insights - Sommer / Summer 2025others, academic conferences, international transport, urgent repair andmaintenance work, small-group meetings, installation and assembly, as well asathletes, artists, scientists, personnel of international institutions and diplomats.Lastly, depending on the specific sector and activities of each company, additionalformalities may apply. For instance, construction companies must, under certainconditions, declare their work and register their posted workers via theCheckin@work application, and their employees must wear a Construbadge.II. Permanent establishmentAnother important practical consideration is that employers, by postingemployees in Belgium, may establish a permanent establishment under the termsof the applicable double taxation treaty. If this happens, the employer must paycorporate 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 aforeign company has a physical presence in Belgium. This can be either ownedor rented. Examples of material permanent establishments include offices,factories and workshops. Therefore, even renting an office for a postedemployee could result in Belgian corporate tax obligations.The second type is a personal permanent establishment, which arises when anemployee of the foreign company is employed in Belgium and authorised toconclude contracts on behalf of the company. This includes managerial staffand sales representatives. In such cases, the simple act of hiring theseindividuals in Belgium can be sufficient to establish a personal permanentestablishment, triggering Belgian corporate tax obligations.The third type of permanent establishment comprises construction projectsand installation works exceeding 12 months in duration, although thisthreshold may differ in some double taxation treaties. If this threshold is met,the company is subject to Belgian corporate tax on profits generated fromactivities carried out in Belgium.29
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