Complex expat challenges, a smooth start in Belgium

An international group planned to transfer an experienced employee from a foreign group entity to its Belgian affiliate for a three-year assignment. The employee would relocate to Belgium with their family while maintaining ties with the home-country organisation. For HR, this was the group’s first long-term intra-group assignment to Belgium. The key question was straightforward: how can we organise this correctly while avoiding surprises for both the employee and the business?

The challenges

Behind that question lay a series of important decisions. Would the employee remain covered by the home-country social security system? Where would tax become due? Would the employee qualify for the Belgian special tax regime for inbound taxpayers?

A net salary package had also been agreed, requiring a clear understanding of the financial impact on both the employee and the group. Equity compensation, employment conditions and payroll processing needed to be reviewed, while the Belgian and foreign payrolls had to be aligned and responsibilities clearly allocated between the different group entities.

The role of a trusted partner

Van Havermaet first assessed the tax, social security, employment law and financial implications of the assignment. Based on these findings, we worked closely with the group to design a practical and sustainable mobility framework.

We determined the employee’s tax and social security position and guided the application for the Belgian special tax regime.
We analysed the financial impact of the net salary arrangement and assessed how future changes during the assignment could be accommodated.
We reviewed the assignment arrangements and employment conditions and translated them into clear payroll instructions, enabling the Belgian payroll provider to process all remuneration elements correctly.
We assessed the Belgian tax treatment and payroll reporting requirements for the employee’s stock option plan.
Through personalised employee briefings, we explained the implications of the move and provided guidance on practical questions and obligations.

The outcome

The assignment was implemented correctly and on schedule. HR received one clear overview of all actions, responsibilities and milestones, while the Belgian payroll provider had the necessary instructions to process remuneration accurately and coordinate effectively with the foreign payroll team. This helped avoid double deductions and withholdings, missed filings and costly corrections afterwards.

The employee relocated with full visibility on the impact of the assignment on net income, stock options and personal tax obligations. The group was able to focus on its international objectives, knowing that Belgian compliance requirements would remain properly managed throughout the assignment.