Belgium is a tax haven for 20,000 expats

Wednesday, 31 December 2014 15:31
Thanks to a favourable tax system, more than 20,000 managerial staff, researchers and specialized staff who come from abroad only pay a small amount of tax on their income here.
They also escape paying tax abroad. It’s a tax rebate of more than 1 billion euros, De Standaard said on Wednesday. As a solution to the high cost of work in our country, these managers, researchers and specialized staff have benefited from a special tax system since 1983.They work for multinational companies Thanks to this system, they pocket a large part of the charges their employer pays for them, tax free. Also, only part of their salary is taxed.

Currently, 20,809 managers benefit from this system according to SPF (Services Publics Fédéraux) Finances. Belgium does not inform these expat’s home countries that they are considered non-residents here, which allows them to slip through the tax net in both countries.

The accounts court gave a very critical review of this system in 2003.

Andy Sanchez (Source: Belga)
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