RESIDENCE AND CITIZENSHIP IN THE EUROPEAN UNION BELGIUM RESIDENCE PROGRAM® FOR NON–EU CITIZENS
Belgium is one of the most attractive European countries in terms of business, 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 fasted growing ports of the world. The country’s legislation and many of its regulations are based on this principle of international orientation.
For entrepreneurs, self-employed individuals, and investors, Belgium offers a relatively easy path to resident status and eventually acquiring Belgian citizenship under certain conditions. As the country is within the EU and Schengen zone, a Belgian residence permit allows you to travel throughout this zone without the need for a visa.
The Belgium Residence Program® (BRP) is a fixed-fee service package provided by for non-EU citizens who are interested in obtaining a residence permit in Belgium.
FAVOURABLE TAX SYSTEM
The Belgian tax system is very favourable 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 realised on shares (as one of the last countries in Europe). With advanced tax planning it may be possible to pay no inheritance or gift taxes at all.
Special regulations can apply to key managers and directors. These individuals are treated as foreigner residents in Belgium. However, they are taxed only on income actually earned within the territory of Belgium. Income earned outside Belgium is in some cases not taxable at all.
Companies can benefit from notional interest deduction, which is a tax deduction of approx. 3% of the shareholder’s equity (net assets), which can be set off against their operating result. Special tax incentives also apply to particular categories such as intellectual property and shipping.
As of January 1, 2007, Belgium has even amended its legislation so that withholding tax on interest payments is no longer levied on a Belgian subsidiary whose parent company is situated in a country with which Belgium has concluded a tax treaty.
BELGIAN CITIZENSHIP AND PASSPORT APPLICATION
Newcomers to Belgium may initially apply for a residence permit. This is subject to annual renewal at least in the first 3 years, after which a residence permit of unlimited duration could already be issued.
Depending on the applicant’s situation, citizenship can be declared already after 5 years of residence (legal stay).
The applicant will have to prove sufficient knowledge of a local language (Dutch, French or German), social integration and economic participation, and must have obtained a residence permit of unlimited duration. In some cases proof of knowledge of the local language is not obliged.
Belgian legislation even provides a significant security to clients with regard to eventually becoming Belgian citizens.
After 10 years of residence (legal stay) in Belgium, a resident can declare Belgian Nationality and will only have to prove sufficient knowledge of a local language and his participation in the community of stay .
This is an unique provision world wide.
RESIDENCE CATEGORIES – OVERVIEW
All applications for residence and citizenship in Belgium are decided by the authorities on a case-by-case basis. The main two options available to non-EU citizens are 1) highly skilled or key manager/employee, and 2) as an entrepreneur or self-employed individual.
To apply for residence, you must have certain ties to Belgium. These may be personal and/or of a business/professional nature. Setting up/purchasing a Belgian company or getting employed by a Belgian company is a good way to establish business ties with Belgium.
INVESTING IN BELGIAN BUSINESSES
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. The Belgian holding company tax regime is one of the most favourable in Europe, and the extensive tax treaty network allows investors to take advantage of tax planning opportunities with the establishment of a company in Belgium especially if presence in Europe would be inline with the already existing company’s philosophy.
INCORPORATION OF A NEW BELGIAN COMPANY OR BELGIAN BRANCH OF A FOREIGN COMPANY
Even with a new set up Belgian company, the applicant may be employed in 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 may be capitalized and monies may be lent through other group companies.
The applicant may be (minority) but need not be a shareholder of this company. The company’s share capital must be at least € 18,600 (fully paid up capital in case of a bvba). However, we could advise this to be increased to a more substantial amount, depending on the situation.
The applicant’s yearly salary must be at least € 38.665 for a highly skilled employee, or at least € 64.508 for an employee with a managerial position (amounts applicable in 2013). Under certain conditions a European Blue Card can be applied for if the employee is highly skilled and earns at least € 49.995,00 (2012).
In case of a self employed individual there is no minimum salary obligated.
On professional income such as an employee remuneration, the applicable taxation (including social security withholdings) is minimum 30%, based on Belgian regulations.
Besides the social security contributions on the salary no social security premiums are payable.
5 Stars Europe can take care of all corporate services for the Belgian company.
The residence permit will normally be granted within approximately 2 – 3 months after the work permit has been issued.
The spouse and children can join the applicant as residents in Belgium through a family reunion procedure after the applicant’s residence permit has been issued.
FEES AND COSTS
Fees charged by 5 Stars Europe for a Belgian residence application will vary from case to case. For a residence application the following minimum fees (exclusive of VAT, which may apply depending on the client’s situation) are charged (for one/main applicant):
€ 105,000 for the application to obtain a residence permit for the first year payable upon the following milestones:
- € 15,000 : the retainer fee
- € 35,000 : upon signing the Agreement and preparing the Personal MEMO,the Company set up and the Work Permit application
- € 20,000 : upon receipt of the Work Permit and upon the One Entry Visa application
- € 35,000 : upon registration at the Municipality and the Residence Permit application
€ 27,000 for every renewal for the second and subsequent years
€ 37,000 for a citizenship application (possible at the earliest after the 5th year)
Fees for family members (spouses and children under 18 years of age), per family member:
€ 23,000 for application to obtain a residence permit for the first year
€ 12.000 for every renewal for the second and subsequent years
€ 25,000 for a citizenship application (at the earliest after the 5th year)
5 Stars Europe fees include all of the following services:
- Advice and assistance during the initial residence application
- Assistance in the search for adequate housing
- Preliminary advice with regard to schooling (if applicable)
- Initial pre-immigration tax advice (2 hours)
- Direct access to the various authorities
- Assistance with opening bank accounts
- Assistance with subscribing to obligated Health Insurance
- Liaison with all local and government authorities
- Submission of the application to the relevant government authorities
- Advice and assistance regarding local accommodation and related formalities
- Assistance with the registration in the municipality
- Advice and assistance during all renewals of the temporary residence permit
- Assistance with obtaining a permanent residence permit
- Advice and assistance with the citizenship application
- Follow-up of the citizenship application
- Assistance with the passport application
In addition to the fees charged by 5 Stars Europe, there are various sundry expenses consisting of government charges, translation costs and notary fees (usually amounting to between approx. € 1,000 and € 5,000 depending on the case).
Not included are the costs for establishing a company and directors fee (approx. € 10,000-€ 20,000 in the first year and approx. € 5,000 per year thereafter, of course depending on the company’s activities), the rental of office space (available from approx. € 6,000 per year) and costs for accounting, tax returns and company maintenance as well as private accommodation (from approx. €1,000 per month for a furnished apartment).
Clear, comprehensive written agreements are made in each case. These cover all aspects of the mandate including fees and a possible refund in the unlikely event that the application is unsuccessful.
TIME FRAME
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 to 6 months after the application in order to obtain the initial residence permit.
PROCESS OVERVIEW
The process is handled by 5 Stars Europe and is executed to meet the highest level of discretion and expectations.
Step 1: After having serviced the prospect with free information, 5 Stars Europe will invite the prospect to complete and return the ‘Prospect/Client Data Sheet’.
A first World Check will be executed and after approval by 5 Stars Europe, the prospect will receive a retainer invoice of € 10.000 to be paid.
Step 2: Personal and detailed information will be provided to the prospect/client based on his/her given information with regard to private- and business situation/exposure, CV, actual company structure, etc.
This preliminary advice will be discussed at a personal meeting or by conference call, both attended by a team of specialised lawyers.
Step 3: Upon the prospect’s decision to start the Belgian Residence Program, all relevant Agreement documents will be sent to the prospect/client to be completed, signed and returned to 5 Stars Europe.
Before any application, the fundamental Back Ground Check will be started.
The outcome of this client compliance check is crucial and will determine whether the prospect can and will be accepted by 5 Stars Europe as a new client.
Only in the event the Back Ground Check shows significant conflicts with earlier given information by the prospect, the prospect will be refused as a client and the paid Fees will be refunded according to the Agreement.
Step 4: The Client will receive his/her personal MEMO in writing and the execution of the BRP can start.
WHY BELGIUM?
Belgium is an attractive country in the heart of Europe. It offers many benefits to foreign companies and persons interested in an European hub/branch and residency. The following is an overview of the most important benefits that you can take advantage of when choosing to become resident in Belgium:
Tax benefits
- No tax on capital gains
- No wealth or net worth taxes
- Maximum withholding tax of 25% on all interest payments
- Maximum tax on dividend income for individuals 25%
- No tax on the surplus value of privately held real estate, if owned for min. 5 years
- 0-3% taxation on gifts (achievable with appropriate tax planning)
- Possibility to pay no inheritance tax (with appropriate tax planning)
- Special tax incentives apply to particular categories such as intellectual property and shipping
- 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
Although Belgium ranks at the top of the list of the OECD for its high standard tax rates, Belgian tax law allows appropriate tax planning and makes that Belgium can even qualify as a tax haven due to several tax incentives and opportunities.
Residence and citizenship benefits
- Resident permit holders can travel visa-free within Europe (Schengen Area)
- Belgian citizenship can be applied for after 5 years of legal residence
- No restrictions on dual citizenship, i.e. existing citizenship can be kept
- No limits to number of citizenship applications approved per year
- Extensive visa-free travel: Belgian citizens can travel to 127 countries without a visa
Life-style and business benefits
- Multicultural and multilingual – English widely spoken
- European and global headquarters of many organisations (e. NATO, EU)
- European and global headquarters of major international businesses
- Convenient location in the very heart of Europe
- Easy access by road, sea and air – excellent infrastructure
- Rich historic and cultural heritage
- High quality of life
WHY USE 5 STARS EUROPE BELGIUM?
5 Stars Europe Belgium provides a unique package for companies and private clients who are interested in obtaining presence in Europe (Belgium) and a residence permit in Belgium. The integrated services provided by 5 Stars Europe offer many advantages to clients, including the following:
- 5 Stars Europe is the world’s leading firm for private client residence solutions, with extensive expertise, networking at all levels and comprehensive experi You can therefore be sure to receive top advice and a high quality service throughout.
- The Belgium Residence Program (BRP) has been specially designed for non-EU citizens as a fixed-fee package to make it easy and straightforward for clients who wish to obtain a Belgian residence permit in respect with the legal conditions.
- The BRP is designed so that the client can save time in every step of the application, as most of the work is executed on the basis of a power of attorney; if and when the client is required to participate in the process, the interaction is professionally managed by 5 Stars Europe and made as easy for the client as
- The fixed fee package includes not only the preparation and successful handling of the residence permit application, but also taking care of issues like opening bank accounts, advice on and arranging of health insurance, liaising with top tax lawyers in Belgium to ensure proper tax planning is done for the client, etc.
- As the program requires employment, even the incorporation or purchase of a company, can be handled and coordinated by 5 Stars Europe, thus the client does not need to get involved in the set up and administration of the company
- As the BRP requires the establishment of a company and normally the employment of the client as a key employee, depending on the set up, it can be possible to invoice the parent company rather than the individual client for the costs of the residence program if desir In this way the costs of the BRP can be paid as business expenses, with obvious tax benefits.
For more detailed information on residence and citizenship in Belgium, please contact the Monaco office of 5 Stars Europe who will be pleased to advise and assist you further.
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