Global Citizen

Belgium

Belgium is one of the most attractive European countries in terms of residence, citizenship and taxation.

With its rich cultural and historical heritage as well as its political and economic stability, the country offers an excellent lifestyle environment. Its capital, Brussels (NATO and EC headquarters), is also the capital of Europe with a strong international orientation. Antwerp is one of the biggest and most rapidly growing ports in the world.

The country’s legislation and many of its regulations are based on this principle of international orientation.

For people with sufficient means, entrepreneurs, self-employed individuals and investors who are not EU citizens, Belgium offers a relatively easy path to resident status and to eventually acquiring Belgian citizenship after three years of residence. As the country is within the EU and the Schengen zone, a Belgian residence permit allows citizens whose passport normally requires a visa to enter this zone to travel throughout this zone without the need for a visa.

Requirements

Newcomers to Belgium may initially apply for a residence permit. This is subject to annual renewal in the first 3 years, after which a permanent residence permit is generally issued. After 7 years of residence in Belgium a resident acquires the right to become a Belgian. This is a unique provision that provides significant security for becoming Belgian citizens, as in most countries, citizenship is only ever granted in full discretion by the relevant authorities.  

All applications for residence and citizenship in Belgium are decided by the authorities on a case-by-case basis.  The main two options are 1) as an investor and/or key manager/employee, and 2) as an entrepreneur or self-employed individual.

To apply for residence, an applicant must have certain ties to Belgium. These may be personal and/or of a business/professional nature. Setting up a company is a good way to establish business ties with Belgium.

Belgium offers an investor-friendly environment to anyone wishing to invest in an existing Belgian business or through a Belgian (holding) company investing in foreign businesses. Extensive tax treaty network allows investors to take advantage of tax planning opportunities with the establishment of a company in Belgium.

If the decision is made to set up a Belgian company, the applicant may be seconded as an executive / key employee of this company. This company may also be an international holding company or financing company within a group structure. There is no requirement to invest in a specific way. The company can be capitalized and monies may be lent through other group companies. The applicant may be but need not be a shareholder of this company. The company’s share capital must be at least EUR 12,400.

The applicant’s salary must be at least EUR 35,000 per year. For this salary, taxation is actually around 30% and is based on Belgian regulations. Besides the social security contributions on the salary no social security premiums are payable. 

Terms

Due to the case-by-case decision-making process and depending on the category and individual circumstances, applicants may expect to wait at least 3-6 months after the application in order to obtain the initial residence permit.

Advantages of Belgium’s Residence permit

Belgium is an attractive country in the heart of Europe. It offers many benefits to foreign persons interested in becoming resident there, the most important from which are:

Tax benefits

The Belgian tax system is very favorable for individuals and executives, holding companies within international structures and individuals with independent means.  There are no wealth or net worth taxes, no taxation on capital gains realized on shares (as one of the last countries in Europe).

Among other benefits we should point out:
• Maximum withholding tax of 15% on all interest payments

• Maximum tax on dividend income for individuals 15 - 25 %

• No tax on the surplus value of privately held real estate, if owned for minimum 5 years

• 0-3% taxation on gifts (achievable with appropriate tax planning)

• Possibility to pay no inheritance tax (with appropriate tax planning)

• In some cases the income earned outside Belgium is not taxed

• Extensive tax treaty network

• Notional interest deduction for companies

• In some cases, the costs of the residence program can be invoiced to a company

Residence and Citizenship benefits

• Extensive visa-free travel: Belgian citizens can travel to 127 countries without visa

• Belgian citizenship can be applied for after 3 years of legal residence 

• Belgian citizenship is acquired by right after 7 years of legal residence

• No restrictions on dual citizenship

• No limits to number of citizenship applications approved per year