Introduction to Remote Hiring in Belgium
Remote hiring in Belgium has seen significant growth in recent years, especially after the global shift to hybrid and distributed teams. Belgium’s advanced digital infrastructure, multilingual talent pool, and strong legal framework make it an appealing destination for companies looking to expand their remote workforce in the European Union.
However, foreign companies often face challenges such as navigating Belgium’s multilingual legal environment, understanding complex labor laws, and complying with social security and tax requirements. To address these challenges, two primary options emerge for foreign employers: setting up a local legal entity or partnering with an Employer of Record (EOR). Each option carries its own implications for cost, speed, and compliance.
EOR vs. Setting Up an Entity in Belgium
Factors to Consider When Choosing EOR or Entity Establishment
When considering how to enter the Belgian market, companies should evaluate the following:
- Speed of Hiring: An EOR enables onboarding in days, while legal entity setup may take weeks or months.
- Expansion Goals: For short-term projects or small teams, EOR is more cost-effective. Entity establishment suits long-term operations and strategic market positioning.
- Administrative Burden: EOR handles all HR, legal, and payroll functions. Setting up an entity requires managing taxes, accounting, contracts, and statutory filings in-house or via consultants.
- Flexibility: EOR offers strategic flexibility—ideal for market testing or short-term staffing. Entities provide control but come with higher overhead.
Why Time to Market Matters for Global Companies
Belgium offers significant advantages as a high-income EU economy and a logistics hub at the heart of Europe. Quick entry into the market allows companies to:
- Capitalize on business opportunities before competitors
- Establish a local presence in EU policy centers like Brussels
- Tap into regional markets in Wallonia, Flanders, and beyond
Delays in setting up a legal entity may lead to missed opportunities or unnecessary costs. An EOR provides a way to hire talent and establish operations without waiting months for registration, VAT setup, or bank accounts.
Cost Implications of Entity vs. EOR in Belgium
Setup and Maintenance Costs
Setting up a legal entity in Belgium involves substantial initial and ongoing costs:
- Company incorporation and notary fees
- Accounting and bookkeeping services
- Appointing local representatives or directors
- Office space (mandatory in some sectors)
In contrast, an EOR operates on a monthly fee per employee basis, often between 10–15% of gross salary. This model bundles employment costs like payroll, taxes, HR, and compliance into a single service charge.
Compliance Costs
Entities must manage:
- Payroll tax calculations and payments
- Employee registration with ONSS (social security)
- Monthly and annual tax filings
- Benefits setup and legal document drafting
EORs offer compliance as part of their package—eliminating the need for in-house legal or finance experts. This significantly reduces cost uncertainty and legal risk.
Time Savings
Using an EOR enables:
- Faster onboarding—usually within 5–10 business days
- Avoidance of delays in securing VAT numbers, bank accounts, and employment registrations
- Rapid scaling across Belgian regions without added legal complexity
Compliance and Legal Exposure: Entity vs. EOR
Belgium’s labor laws include mandatory employment contracts, social contributions, paid leave entitlements, and adherence to collective labor agreements (CLAs). Foreign companies operating without full understanding of these laws risk fines, misclassification, and reputational damage.
With a legal entity, the company assumes full liability for:
- Misclassification of workers
- Incorrect payroll filings or contribution delays
- Non-compliance with local CLAs
An EOR minimizes exposure by acting as the legal employer. They ensure full compliance with:
- Belgian employment standards
- Social security requirements (ONSS)
- Tax and benefits filings
- GDPR and employee privacy obligations
Foreign Compliance: Setting Up a Legal Entity vs. Using EOR in Belgium
Setting Up a Legal Entity
Companies can establish different legal forms such as:
- BV/SRL (Private Limited Liability Company)
- NV/SA (Public Company)
Each form has unique requirements around:
- Share capital and founder contributions
- Appointment of directors and statutory auditors
- Articles of association notarization
- Corporate tax and VAT registrations
The process can take 4–12 weeks and involves interaction with multiple government bodies.
Using an Employer of Record (EOR)
With an EOR:
- The provider becomes the legal employer on behalf of your company
- They issue compliant contracts in French, Dutch, or English
- EOR handles all social contributions, insurance, payroll tax, and benefits setup
You retain day-to-day operational control while the EOR ensures full legal compliance.
Switching from EOR to Entity Establishment in Belgium
Many companies start with an EOR and transition to a legal entity once they:
- Exceed a headcount threshold
- Reach a predictable revenue stream in Belgium
- Require long-term control over HR policies and benefits
Transition Steps:
- Notify your EOR provider in advance
- Start entity registration while maintaining EOR employees
- Migrate employees from EOR to the new entity with mutual agreement
- Ensure continuity in payroll, benefits, and legal documentation
EORs often assist during this transition to ensure compliance is maintained.
Choose Asanify for EOR in Belgium
Asanify provides end-to-end EOR services tailored for Belgium-based hiring. Whether you’re hiring remote developers in Flanders or marketing talent in Brussels, Asanify ensures:
- Legally compliant employment contracts
- Payroll processing and ONSS registration
- Health insurance and benefits administration
- Multilingual onboarding support (French, Dutch, English)
Why companies choose Asanify:
- Fast onboarding in 5–10 business days
- Lower risk compared to entity setup
- Transparent pricing and dedicated local HR support
FAQs
1. What is an Employer of Record (EOR) in Belgium?
An EOR is a third-party provider that becomes the legal employer of your team in Belgium, managing payroll, tax, compliance, and HR on your behalf.
2. How does an EOR help with Belgian labor law compliance?
EORs ensure employment contracts, taxes, and social security contributions meet all Belgian legal requirements.
3. What are the costs involved in using an EOR in Belgium?
Typically 10–15% of the employee’s gross monthly salary, covering payroll, benefits, and compliance.
4. What benefits do employees get under an EOR arrangement in Belgium?
All statutory entitlements, including healthcare, paid leave, parental benefits, and pension contributions.
5. How does payroll management work with an EOR in Belgium?
The EOR calculates taxes, deducts contributions, and pays salaries directly to employees.
6. Can an EOR handle independent contractors in Belgium?
Yes, but it’s essential to define the contractor relationship correctly to avoid legal issues.
7. What are the key differences between EOR and setting up an entity in Belgium?
EOR is faster and more flexible but offers less control. Entity setup provides full control with higher costs and legal complexity.
8. Is it mandatory to have written employment contracts in Belgium?
Yes, and they must be in one of Belgium’s official languages unless mutually agreed otherwise.
9. What are the tax obligations for foreign companies hiring in Belgium?
Foreign employers must ensure correct income tax withholdings, ONSS contributions, and declarations to local authorities.
10. What are the maternity and paternity leave rules in Belgium under EOR?
Employees are entitled to 15 weeks of maternity and 20 days of paternity leave, managed by the EOR.
11. How does health insurance work under EOR in Belgium?
Public healthcare is mandatory; EORs also offer private top-ups as optional benefits.
12. What is ONSS (National Social Security Office), and who must contribute?
ONSS manages social security. Both employers and employees must contribute. EORs handle this directly.
13. What is the difference between employees and contractors in Belgium?
Employees have structured working hours, entitlements, and taxes deducted. Contractors are self-employed and invoice for services.
14. How does an EOR ensure timely salary payments in Belgium?
Through automated payroll and local banking systems, ensuring compliance with payment deadlines.
15. What are professional tax obligations in Belgium?
Employees and employers may pay regional and professional taxes based on location and income levels.
16. Can an EOR manage employment across multiple regions in Belgium (Wallonia, Flanders, Brussels)?
Yes, EORs support multilingual compliance and region-specific payroll and labor law requirements.
17. Why is an independent contractor agreement important in Belgium?
It defines the legal relationship and protects both parties against misclassification.
18. What is a Professional Employer Organization (PEO) in Belgium?
A PEO co-employs workers but does not assume legal employer status like an EOR does.
19. What are the key labor laws foreign employers need to know in Belgium?
Written contracts, ONSS registration, holiday pay, working time rules, and termination procedures.
20. How does an EOR simplify payroll and compliance for foreign companies?
By acting as the legal employer and bundling payroll, benefits, and HR into a single compliant service.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.