Cross-border employment within and outside the EU: the employer's obligations
Cross-border employment within and outside the EU: the employer's obligations
Did you know that cross-border employment involves many obligations on the part of the employer? And that these formalities often must be in order before the employee's employment begins?
The specialised BDO, International Mobility, team supports companies in finding the appropriate solution for each cross-border employment and assists in fulfilling mandatory formalities. This is done in close cooperation with the BDO Employment & Social Security Law team.
Can you travel to Belgium as a non-EU worker or is a Schengen Visa necessary? This depends primarily on the nationality of the employee.
Suppose the Schengen visa is in order and the employee can travel to Belgium. But can the employee actually start working?
Unfortunately, the answer is (usually) negative, but there are exceptions. For example, is it a business trip of limited duration or as part of an education (training on the job)?
To work in Belgium, an authorisation to work is generally required. The employer must apply for this in advance with the Belgian administration.
Is the employee coming to Belgium temporarily or for an indefinite period?
Is it a secondment or local employment? In case of a secondment, the employee needs to have a Certificate of Coverage confirming that social security contributions are paid in the country of origin. In case of local employment, an employment contract under Belgian law is usually drawn up.
Can a foreign employer make such application for single permit/work permit himself? This is indeed possible; it does not have to be a Belgian employer. The procedure then goes through a representative in Belgium. BDO is such a recognised representative in Belgium.
Can a single permit be requested for any employee?
No, only for well-defined categories of employees, the most common of which is highly skilled employees, such permit can be requested for. For highly skilled workers there is a diploma requirement (minimum bachelor level) and a minimum wage requirement that varies per region. Not sure whether the foreign employee you wish to employ falls under one of these categories? BDO can help you analyse the possibilities and submit the necessary permit requests. The possibilities also vary by region in Belgium, with the employee's place of employment being decisive.
The application for an EU Blue Card, for example, can also be of interest to the worker.
There is a special status for frontier workers that can be applied for UK-employees working in Belgium, provided they return to the UK at least every week. But a resident of e.g. France with non-EU nationality can also use this status. Frontier worker status can be applied for up to one year.
What is the waiting period for obtaining a single permit/work permit?
The average waiting time, from submitting the application, currently is about 4 months. This also varies by type of application and by region; for example, we experience shorter waiting times in the Brussels region.
Are there other options? Can the employee travel to Belgium and receive training in advance while waiting for the single permit? In some cases, we can work out solutions.
Can an employee with EU nationality work in Belgium as such?
Although the European free movement of persons and workers allows Union citizens to work in another EU-member state without an authorisation to work, there are still several obligations that must be fulfilled, such as:
Does the Special tax regime for incoming taxpayers (BBIB) and incoming researchers (BBIO)) apply? For both EU and non-EU nationality employees, it is important to make the link with the expat regime (BBIB and BBIO). Thanks to this special regime, the employer can, under certain conditions, reimburse up to a maximum of 30% on top of the remuneration as expenses proper to the employer (exempt from tax and social security) to the expat/employee. Extra attention is required when determining the salary package for researchers enjoying this status in combination with the minimum wage for highly skilled employees with a single permit.
The reimbursement of other expat-related costs (i.e. school costs, moving expenses, etc.) can also be compensated through this tax regime, under certain conditions, as tax-free expenses proper to the employer.
Finally, BDO can assist with the analysis and fulfilment of the tax and payroll obligations on the part of the employer and employee, as well as the analysis of the conditions of application for the BBIB/BBIO and the formalities of the BBIB/BBIO regimes. Do not hesitate to contact your trusted BDO advisor or one of our International Mobility team experts, Nancy Slegers, or Employment & Social Security Law team experts, Natalie Bastiaens.
Employee with non-EU nationality ("third-country national")
Can you travel to Belgium as a non-EU worker or is a Schengen Visa necessary? This depends primarily on the nationality of the employee.
Suppose the Schengen visa is in order and the employee can travel to Belgium. But can the employee actually start working?
Unfortunately, the answer is (usually) negative, but there are exceptions. For example, is it a business trip of limited duration or as part of an education (training on the job)?
To work in Belgium, an authorisation to work is generally required. The employer must apply for this in advance with the Belgian administration.
Is the employee coming to Belgium temporarily or for an indefinite period?
- For employment of less than 90 days, a work permit B is required.
- For employment of 90 days and more requires a combined permit (= single permit).
Is it a secondment or local employment? In case of a secondment, the employee needs to have a Certificate of Coverage confirming that social security contributions are paid in the country of origin. In case of local employment, an employment contract under Belgian law is usually drawn up.
Can a foreign employer make such application for single permit/work permit himself? This is indeed possible; it does not have to be a Belgian employer. The procedure then goes through a representative in Belgium. BDO is such a recognised representative in Belgium.
Can a single permit be requested for any employee?
No, only for well-defined categories of employees, the most common of which is highly skilled employees, such permit can be requested for. For highly skilled workers there is a diploma requirement (minimum bachelor level) and a minimum wage requirement that varies per region. Not sure whether the foreign employee you wish to employ falls under one of these categories? BDO can help you analyse the possibilities and submit the necessary permit requests. The possibilities also vary by region in Belgium, with the employee's place of employment being decisive.
The application for an EU Blue Card, for example, can also be of interest to the worker.
There is a special status for frontier workers that can be applied for UK-employees working in Belgium, provided they return to the UK at least every week. But a resident of e.g. France with non-EU nationality can also use this status. Frontier worker status can be applied for up to one year.
What is the waiting period for obtaining a single permit/work permit?
The average waiting time, from submitting the application, currently is about 4 months. This also varies by type of application and by region; for example, we experience shorter waiting times in the Brussels region.
Are there other options? Can the employee travel to Belgium and receive training in advance while waiting for the single permit? In some cases, we can work out solutions.
Employee with EU nationality
Can an employee with EU nationality work in Belgium as such?
Although the European free movement of persons and workers allows Union citizens to work in another EU-member state without an authorisation to work, there are still several obligations that must be fulfilled, such as:
- The employer must check whether a Limosa notification is needed. This is required for any employee working in Belgium without being subject to the Belgian NSSO.
- The employer is obliged to complete an A1 declaration for employees seconded to another EU-member state or in case of simultaneous employment in several EU-member states.
Does the Special tax regime for incoming taxpayers (BBIB) and incoming researchers (BBIO)) apply? For both EU and non-EU nationality employees, it is important to make the link with the expat regime (BBIB and BBIO). Thanks to this special regime, the employer can, under certain conditions, reimburse up to a maximum of 30% on top of the remuneration as expenses proper to the employer (exempt from tax and social security) to the expat/employee. Extra attention is required when determining the salary package for researchers enjoying this status in combination with the minimum wage for highly skilled employees with a single permit.
The reimbursement of other expat-related costs (i.e. school costs, moving expenses, etc.) can also be compensated through this tax regime, under certain conditions, as tax-free expenses proper to the employer.
Finally, BDO can assist with the analysis and fulfilment of the tax and payroll obligations on the part of the employer and employee, as well as the analysis of the conditions of application for the BBIB/BBIO and the formalities of the BBIB/BBIO regimes. Do not hesitate to contact your trusted BDO advisor or one of our International Mobility team experts, Nancy Slegers, or Employment & Social Security Law team experts, Natalie Bastiaens.