Do I Need a Local Entity to Hire in Belgium?

In Belgium, a "local entity" typically refers to a recognized employing presence, such as a subsidiary or branch office, that can fulfill local employer obligations. This setup allows you to be acknowledged as an employer in Belgium, enabling you to manage payroll, social security, and other employment responsibilities.

Without a local entity, it’s usually not feasible to register as an employer, manage mandatory social security processes, run compliant payroll, or issue employment contracts that adhere to local laws. Belgium's National Social Security Office outlines the employer's responsibilities for contributions, which are essential for compliance.

What is Required to Employ Someone in Belgium?

• Local employing entity required to directly employ? Yes (You need a local entity to manage employment obligations.)
• Payroll registration required? Yes (You must register with the National Social Security Office for payroll compliance.)
• Withholding/tax remittance required? Yes (Employers must withhold taxes from employee salaries.)
• Social contributions required? Yes (Employers are responsible for social security contributions.)
• Local employment agreement required? Yes (Written contracts are mandatory under Belgian law.)
• Mandatory benefits to budget? Yes (Statutory leave, health insurance, and pension contributions are required.)
• Works council/collective agreements considerations? Often (Many sectors are governed by collective agreements that impact employment terms.)

Best Options If You're Hiring in Belgium

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

While hiring contractors in Belgium doesn’t require a local entity, the country has strict labor laws that protect workers. If the contractor operates similarly to an employee, you could face legal challenges. Here are some key points to consider:

• Ensure the contractor has multiple clients and isn’t dependent on your business alone.
• Avoid controlling their work hours, location, or methods.
• Be mindful of the role's significance to your business; core functions may require direct employment.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in Belgium, depending on the type of entity and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated €300–€800 per month ($330–$880)
• Payroll provider: Estimated €20–€60 per employee per month ($22–$66)
• Employer registrations and recurring compliance: Varies by complexity, typically €1,000–€3,000 per year ($1,100–$3,300)
• Corporate tax filings and annual reporting: Estimated €1,500–€5,000 per year ($1,650–$5,500)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, typically around 25% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums, such as private health insurance or additional vacation days.

How an Employer of Record Can Help You Hire in Belgium

Hiring in Belgium can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Belgium quickly without establishing a local entity, eliminating incorporation costs and ongoing administration.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s managed payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.