Did you know that Belgium ranks among the world's top financial hubs, with Brussels hosting key European Union institutions and a thriving business environment? However, local tax regulations, such as Controlled Foreign Corporation (CFC) rules and General Anti-Avoidance Rules (GAAR), can sometimes limit the benefits of international expansion. This is why many Belgian entrepreneurs, investors, and corporations explore offshore jurisdictions like the Cayman Islands. With no corporate tax, capital gains tax, or foreign exchange restrictions, the Cayman Islands offer an attractive destination for business owners seeking tax efficiency and financial privacy while ensuring full compliance with Belgian tax transparency laws.
Whether you're a finance professional in Brussels looking to set up a fund, a tech entrepreneur in Antwerp expanding internationally, or a logistics business owner in Ghent seeking flexible company structures, the Cayman Islands provide a straightforward incorporation process. However, navigating offshore company formation requires careful attention to legal requirements, including meeting anti-money laundering (AML) and counter-terrorism financing (CTF) obligations. In this guide, we'll walk you through how to register a company in the Cayman Islands from Belgium, including key requirements, necessary documents, step-by-step procedures, and critical legal considerations to ensure full compliance with both Belgian and Caymanian laws.
Can you register a company in the Cayman Islands from Belgium?
Yes, individuals and business entities from Belgium can register a company in the Cayman Islands, as incorporation is possible from any country. The process is entirely remote and digital, with no requirement for physical presence. The Cayman Islands is home to over 100,000 registered companies, benefiting from a streamlined regulatory environment and a legal framework designed to facilitate business formation without bureaucratic hurdles. Entrepreneurs and organizations can establish a company efficiently, ensuring full legal compliance.
There are no residency requirements for directors or shareholders, allowing Belgian entrepreneurs to own and manage their company from anywhere. With solutions like Vepapu, the registration process is simplified, ensuring a smooth setup and ongoing corporate management. Businesses and individuals can fully operate and oversee their Cayman Islands entity online without ever needing to visit the jurisdiction.
Common reasons for individuals and businesses from Belgium to incorporate in the Cayman Islands
Asset Protection
Belgian entrepreneurs and investors often seek the Cayman Islands for robust asset protection. Unlike Belgium, where creditors can challenge asset transfers and seize holdings, Cayman entities offer legal structures that safeguard assets from lawsuits, insolvency, and external claims.
Inheritance Planning
High inheritance taxes in Belgium, which can reach up to 27%, push wealthy individuals to explore alternative jurisdictions. A Cayman trust or foundation helps families structure their wealth efficiently, ensuring seamless multi-generational transfers while mitigating tax liabilities.
Taxation Benefits
Belgium’s corporate tax rates can be as high as 25%, with additional social security and local levies. In contrast, Cayman-incorporated companies benefit from zero corporate tax, capital gains tax, or withholding tax, making it an attractive option for businesses looking to optimize global tax exposure while remaining legally compliant.
Holding All Assets and Properties
Belgian investors with global assets—whether real estate, financial portfolios, or intellectual property—favor Cayman holding companies for simplified management. By consolidating assets under a tax-neutral, offshore vehicle, they reduce administrative burdens and improve financial efficiency across different jurisdictions.
Privacy
Belgium has strict financial disclosure requirements, making it challenging for high-net-worth individuals and businesses to maintain confidentiality. Cayman entities offer a greater degree of corporate privacy, as company ownership information is not publicly disclosed, protecting sensitive financial details from unnecessary public exposure.
Ease in Operating Business
The Cayman Islands provide a business-friendly environment with minimal bureaucratic hurdles, unlike Belgium, where regulatory processes can be complex and time-consuming. Cayman companies operate with simplified reporting requirements, allowing business owners to focus on growth rather than compliance.
Less and Streamlined Compliance Requirements
Belgium’s stringent accounting and reporting standards can be burdensome for small businesses and entrepreneurs. Cayman incorporations offer simplified regulatory obligations, with no mandatory annual audits for exempted companies, reducing operational costs and administrative workload.
Running a Restricted Business
Certain industries—such as online financial services and crypto-related businesses—face strict regulation in Belgium. Cayman entities provide a more accommodating legal framework, allowing Belgian entrepreneurs to run ventures that might be restricted or overregulated in their home country.
Foreign Exchange & Capital Controls
Belgium, as an EU member, is subject to financial controls and banking regulations, including restrictions on capital repatriation in certain scenarios. The Cayman Islands impose no foreign exchange controls, enabling seamless international transactions and greater flexibility for Belgian businesses operating across borders.
International Banking & Investment Flexibility
Cayman companies allow Belgian investors to access international banking solutions without local banking restrictions. Holding funds in Cayman-registered entities provides greater access to global investment markets, multi-currency accounts, and financing opportunities not always available within the Belgian financial system.
Avoiding Local Political & Economic Instability
Belgium’s political landscape, affected by regional divisions and government stability concerns, sometimes creates unease for business owners. A Cayman incorporation provides an alternative jurisdiction with a stable legal and economic framework, shielding businesses from domestic uncertainties.
Access to Global Investors & Venture Capital
Many international investors hesitate to invest in Belgian entities due to local tax complexities and legal exposure. A Cayman-based company offers a more universally accepted corporate structure, making it easier to attract venture capital, private equity, and institutional investors from around the world.
Intellectual Property (IP) Holding & Licensing
For Belgian tech startups and creatives, Cayman entities offer an effective structure for IP ownership and licensing. With neutral tax treatment and strong IP protection laws, businesses can register trademarks, patents, and copyrights offshore while benefiting from optimized royalty earnings.
Reputation & Credibility in International Markets
Despite being an offshore jurisdiction, the Cayman Islands maintain a strong reputation among international corporations and financial institutions. Belgian businesses leveraging Cayman structures often gain credibility when expanding globally, as many Fortune 500 companies and investment funds operate from the jurisdiction.
Dual-Entity Structuring for Compliance & Optimization
Belgian companies often use dual-entity structuring, incorporating both a domestic and Cayman entity to optimize taxation and compliance. By strategically distributing business functions across jurisdictions, companies benefit from cost reductions, tax efficiency, and greater operational flexibility while remaining compliant with Belgian and international regulations.
What challenges could arise while incorporating a company in the Cayman Islands from Belgium?
Understanding Offshore Compliance
Entrepreneurs from Belgium looking to set up a company in the Cayman Islands must navigate various offshore compliance requirements. The Caymans are a well-regulated jurisdiction, but businesses must adhere to stringent anti-money laundering (AML) and Know Your Customer (KYC) regulations. Belgian business owners must ensure they provide accurate financial records, beneficial ownership details, and other due diligence documentation to remain compliant with both Cayman and international financial regulations.
Banking Limitations
Opening a corporate bank account for a Cayman-based company can be challenging, particularly for Belgian entrepreneurs operating in high-risk industries such as finance, fintech, or cryptocurrency. Cayman Islands banks require extensive documentation, including proof of identity, business plans, and financial projections, to perform due diligence. Additionally, some Belgian business owners may face added scrutiny due to increasingly strict international banking regulations, potentially resulting in delays or rejections.
Regulatory Changes
Belgium is a participant in global regulatory initiatives, meaning businesses operating offshore must keep pace with evolving tax laws. The OECD’s BEPS (Base Erosion and Profit Shifting) framework, along with Belgium’s Controlled Foreign Corporation (CFC) rules, could affect the taxation of profits generated through a Cayman-registered entity. Entrepreneurs must stay informed about changes in both Belgian and international tax policies to ensure compliance and avoid unexpected tax liabilities.
Ongoing Maintenance Costs
Although company registration in the Cayman Islands is relatively straightforward, Belgian business owners should budget for annual maintenance expenses. These include government filing fees, registered agent costs, and necessary compliance filings to maintain good standing with local authorities. Vepapu simplifies this process by handling all compliance requirements online, ensuring a seamless and hassle-free experience for Belgian entrepreneurs.
Limited Local Operations
A Cayman Islands company is primarily suited for asset holding, investment structuring, or international trade rather than local business activities. Belgian entrepreneurs looking to establish a physical presence, hire local employees, or conduct extensive Cayman-based operations may find this setup unsuitable. Those needing an operational base in the region may need to explore alternative jurisdictions or additional business structures.
Different types of companies that can be registered in the Cayman Islands from Belgium
Exempted Company
An Exempted Company is one of the most popular business structures for Belgian entrepreneurs seeking offshore advantages in the Cayman Islands. It offers significant flexibility, as there is no requirement for local shareholders, no corporate tax, and complete confidentiality in ownership. These companies are ideal for international trading, investment funds, or holding structures, as they can conduct business outside the Cayman Islands without needing to file annual returns with local authorities.
Limited Liability Company (LLC)
A Cayman Islands Limited Liability Company (LLC) combines features of both a corporation and a partnership, making it an attractive choice for Belgian investors. It operates without a requirement for share capital, and members enjoy limited liability while maintaining a flexible management structure. LLCs are commonly used in joint ventures, private equity arrangements, and investment funds due to their adaptable governance structure and tax-neutral benefits.
Foundation Company
The Foundation Company is a unique structure designed for private wealth management, philanthropy, or corporate structuring, making it an excellent option for Belgian individuals or corporations looking to manage assets with legal separation. Unlike a trust, a foundation company has its own legal personality but no shareholders, allowing for perpetual succession and controlled flexibility in how assets are managed over time. It is particularly beneficial for estate planning, charitable organizations, and family wealth preservation.
Limited Partnership (LP)
A Limited Partnership (LP) in the Cayman Islands is often used by Belgian investors for investment funds and venture capital structures. It consists of at least one general partner who manages the business and assumes unlimited liability, while limited partners contribute capital and maintain liability only up to their investment amount. This structure allows for significant privacy and tax efficiency, as there are no local taxation requirements on foreign-earned income.
Special Economic Zone (SEZ) Company
A Special Economic Zone (SEZ) Company is an excellent option for Belgian entrepreneurs looking to establish a physical presence in the Cayman Islands while benefiting from tax incentives and regulatory flexibility. SEZ companies are granted fast-track setup processes, duty exemptions, and access to exclusive business hubs catering to technology, finance, and maritime industries. These companies are particularly attractive for fintech startups, international trading firms, and knowledge-based enterprises looking for a tax-efficient base of operations.
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Requirements to start a company in the Cayman Islands from Belgium
Members
For an Exempted Company in the Cayman Islands, at least one director and one shareholder are required, and both can be non-residents. There are no mandatory local director requirements, allowing Belgian entrepreneurs full control of their offshore entity without appointing a Cayman-based representative. For a Limited Liability Company (LLC), at least one member is required, and there are no residency restrictions, making it easy for Belgian investors to structure their businesses flexibly.
Registered Office and Registered Agent
All Cayman Islands companies must have a registered office within the jurisdiction, provided by a licensed corporate service provider. Additionally, an approved registered agent is required to handle official communication and compliance matters. Belgian business owners can appoint a Cayman-based registered agent to ensure regulatory requirements are met while continuing to operate remotely.
Company Name Approval
Before incorporating, the chosen company name must be submitted for approval to the Cayman Islands Registrar of Companies. It cannot be identical or too similar to an existing registered name, nor can it contain restricted words related to banking, insurance, or financial services without the appropriate licenses. Belgian entrepreneurs should ensure the name aligns with their brand identity while meeting local naming regulations.
Minimum Share Capital
There is no statutory minimum share capital for an Exempted Company or an LLC in the Cayman Islands. However, a common practice is to issue share capital of USD 50,000 or less to qualify for the standard government registration fee. Belgian investors benefit from this flexibility, as there is no requirement to inject large sums of capital to establish their offshore entity.
Incorporation Paperwork
For an Exempted Company, the incorporation process requires the submission of a Memorandum and Articles of Association (MAA), which outline the company’s structure, objectives, and operating rules. An LLC, on the other hand, must file a Registration Statement detailing the company’s name, registered office, and management structure. Experienced corporate service providers in the Cayman Islands can assist Belgian entrepreneurs in drafting these documents to meet legal requirements.
Due Diligence
All proposed shareholders, directors, and beneficial owners must pass a due diligence process to comply with the Cayman Islands’ anti-money laundering laws. This involves submitting certified copies of passports, proof of residential address, references, and a detailed business plan outlining the nature and purpose of the company. Belgian applicants must ensure full transparency, as compliance checks are thorough to prevent financial misconduct and illicit activities.
For Individuals:
The following documents are required for every individual member (directors, shareholders, and ultimate beneficial owners)
A certified true copy (scanned version) of a bank statement or utility bill (e.g., electricity, gas, water, internet, cable, waste management, and sewage).
Copies of the last two tax returns, a letter of employment, a letter from an accountant certifying your annual income, or financial statements or bank statements from the last 2 years.
A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.
A detailed description of your business activities (products and services, sectors, major operating countries), and business model.
For Corporations:
The following documents are required for every corporate member (corporate directors, corporate shareholders, and ultimate beneficial owners)
Certificate of Incorporation
Memorandum and Articles of Association / Constitution
Register of Director
Register of Shareholder / UBO
Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).
How to Register a Company in the Cayman Islands from Belgium?
Step 1: Decide on the Structure
Single Entity Structure
A single entity structure involves incorporating a standalone company in the Cayman Islands, often an Exempted Company or a Limited Liability Company (LLC). This type of structure is commonly used for global trade, asset protection, and investment purposes. Businesses in Belgium can benefit from this setup by operating internationally without local corporate tax burdens.
Double Entity Structure
A double entity structure consists of a Cayman holding company owning an operational business in Belgium. This approach is typically used for foreign investment, international expansion, and tax efficiency. The Cayman holding company can provide flexible corporate governance and better asset protection while the Belgian company remains responsible for local operational activities.
Multiple Entity Structure
In a multiple entity structure, a Cayman holding company manages several subsidiaries in different jurisdictions. This is widely used by multinational corporations, investment funds, and real estate portfolios. Investors in Belgium looking to centralize operations under a tax-efficient parent entity often utilize this structure to manage revenues from multiple regions while ensuring asset protection.
Step 2: Paperwork and Company Incorporation
Company Name Availability Check and Reservation
The first step in the registration process is confirming that your preferred company name is available in the Cayman Islands. You must submit a request to the Cayman Islands General Registry to ensure that the name is unique and meets regulatory requirements. Once approved, the name can be reserved until the incorporation process is complete.
Preparation of Corporate Documents
For an Exempted Company, the company must draft and submit the Memorandum and Articles of Association (M&AA). If registering a Limited Liability Company (LLC), a Registration Statement outlining the company’s purpose, management structure, and other key details is required. These documents are reviewed by the Registrar before granting final approval. Any clarifications requested by the registry must be addressed promptly to avoid delays.
Step 3: Opening a Bank Account
Opening a bank account for your Cayman company is not mandatory but is often required for operational purposes. You can open a business bank account in the Cayman Islands or any other jurisdiction, including Belgium. The choice depends on banking policies, initial deposit requirements, and whether the bank requires a physical visit for account activation.
Many businesses prefer to maintain banking relationships in Belgium while using a Cayman company for international financial transactions. Banking options are available in global financial hubs such as Switzerland, Hong Kong, Singapore, or the UAE. Some offshore banks may offer specialized services that align with your company’s operational and taxation strategies.
Digital banking solutions are also an option for Cayman companies that do not require traditional bank accounts. Fintech-based financial service providers can facilitate international transactions without requiring a physical presence in any specific jurisdiction. This can be preferable for companies operating in the digital economy.
Step 4: Apply for Licenses (if required)
Depending on the nature of your business, additional licenses may be required to operate legally. A Financial Services License is essential for firms involved in asset management, investment funds, and financial consulting. Companies operating in the cryptocurrency or blockchain space may need a Virtual Asset Service Provider (VASP) License. Those involved in insurance and reinsurance services must obtain an Insurance & Reinsurance License to comply with Cayman Islands regulations.
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Certificate of Incorporation provided by the Registry in the Cayman Islands approving your company's incorporation
What are the Annual Compliance Requirements in the Cayman Islands?
Filing an Annual Return
Every Cayman Islands exempted company must submit an annual return to the Registrar of Companies. This filing is a straightforward process requiring confirmation of the company’s status and basic information, ensuring it remains in good standing. Unlike some jurisdictions, there is no obligation to submit financial statements or disclose shareholder details, maintaining the Cayman Islands' business-friendly and confidential environment.
Payment of Annual Government Fees
Companies incorporated in the Cayman Islands must pay an annual fee to the government, determined by the entity's authorized share capital. The fees are due at the beginning of each year, usually by January 31, and failure to meet this deadline results in penalties that increase over time. Staying compliant with these fees is crucial to ensuring the company maintains its legal status and avoids unnecessary financial burdens.
Maintaining a Registered Office and Registered Agent
All Cayman Islands companies are required to maintain a registered office and appoint a licensed registered agent within the jurisdiction. The registered office serves as the official address for receiving legal notices and maintaining statutory documents. The registered agent plays a key role in ensuring compliance with local regulations, including liaising with regulatory authorities when necessary.
Economic Substance Compliance (If Applicable)
Certain Cayman companies that conduct relevant business activities, such as investment fund management or financing, must comply with the Cayman Islands Economic Substance (ES) requirements. These companies must demonstrate adequate management, physical presence, and financial resources in the Cayman Islands. An annual ES declaration must be filed with the Department for International Tax Cooperation (DITC) to confirm compliance or claim an exemption based on the entity’s activities.
Registers Maintenance and Record Keeping
Companies must maintain up-to-date statutory registers, including registers of directors, officers, and beneficial owners, as required under Cayman law. Although financial statements and operational records do not need to be filed publicly, they must be kept for at least five years and should be readily accessible in case of regulatory inspections. Proper record-keeping ensures transparency and helps companies meet other compliance obligations efficiently.
Industry-specific Compliance for Regulated Entities
Entities operating in regulated sectors such as banking, insurance, or mutual funds must comply with additional regulatory requirements set by the Cayman Islands Monetary Authority (CIMA). These may include submitting audited financial statements, meeting capital adequacy standards, and adhering to anti-money laundering (AML) regulations. Failure to comply with these industry-specific rules can lead to regulatory scrutiny, fines, or even revocation of the business license.
Non-Compliance Implications
Failing to meet annual compliance requirements can result in financial penalties, loss of good standing, and potential legal consequences. Persistent non-compliance could lead to the company being struck off the Register of Companies, which may impact asset ownership and future business operations. Restoring a company after being struck off can be costly and time-consuming, making timely compliance essential for maintaining a smooth and efficient offshore operation.
Annual Filings, Renewals, and Reporting Requirements for the Cayman Islands Company
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Other Considerations in Forming a Company in the Cayman Islands from Belgium?
Double Taxation Agreement (DTA)
Belgium and the Cayman Islands do not have a Double Taxation Agreement (DTA), meaning Belgian residents forming a Cayman company cannot rely on tax treaty benefits to reduce withholding taxes on income such as dividends, interest, or royalties. Any income repatriated from the Cayman entity to Belgium is subject to Belgian tax rules, potentially leading to higher tax burdens, especially if classified as foreign income within Belgium’s global taxation framework.
Permanent Establishment (PE)
Belgian tax authorities may assess whether a Cayman company has a Permanent Establishment (PE) in Belgium based on factors such as management and operational control. If the Belgian promoter or key decision-makers exercise significant strategic influence from Belgium, the company may be deemed a Belgian tax resident, leading to local corporate tax obligations despite its offshore status.
Controlled Foreign Corporation (CFC) Rules
Belgium’s Controlled Foreign Corporation (CFC) rules require Belgian tax residents to include certain passive income from low-tax foreign entities in their personal or corporate tax filings. If the Cayman entity lacks genuine economic activities and primarily holds passive income, Belgian authorities may attribute undistributed profits to the Belgian shareholder’s taxable base, increasing the overall tax liability.
Economic Substance (ES) in the Cayman Islands
Companies incorporated in the Cayman Islands that conduct specified business activities must comply with local Economic Substance (ES) regulations by maintaining adequate physical presence, qualified employees, and core income-generating activities within the jurisdiction. Belgian entrepreneurs operating a Cayman company with no substantial local presence may face scrutiny under both Cayman and Belgian regulations, requiring compliance with substance requirements to avoid adverse tax consequences.
Transfer Pricing
Belgium enforces strict transfer pricing regulations to prevent profit shifting between related entities, requiring transactions between a Belgian company and its Cayman subsidiary or affiliate to follow the arm’s length principle. If the Belgian tax authorities determine that intra-group transactions are mispriced to artificially lower Belgian tax obligations, they may impose tax adjustments and penalties, affecting the Cayman entity’s financial and compliance position.
Visa and Residence
The Cayman Islands does not automatically grant residency or work permits to foreign company owners, meaning Belgian entrepreneurs managing their entity remotely must consider local immigration rules. Extended stays in the jurisdiction for business purposes may require appropriate visas or residency status, while prolonged presence in Belgium while directing the Cayman entity could also raise tax residency concerns with Belgian authorities.
How Vepapu Can Assist You in Opening Your Company in the Cayman Islands from Belgium?
Vepapu streamlines the process for Belgian entrepreneurs looking to establish a Cayman Islands company remotely, eliminating the need for travel. From securing name approval to obtaining the Certificate of Incorporation, Vepapu handles everything online, ensuring a straightforward experience. Belgian clients receive expert guidance on opening a corporate bank account, whether in the Cayman Islands, Belgium, or other financial hubs, with full support in documentation and application submissions. To keep your business compliant, Vepapu manages annual filings with the Cayman Islands Registrar of Companies and ensures adherence to Economic Substance (ES) regulations when applicable. With a deep understanding of local and international regulatory frameworks, Vepapu provides tailored solutions, allowing Belgian business owners to focus on growth while enjoying the tax-efficient benefits of a Cayman Islands company.
Frequently Asked Questions while forming a company in the Cayman Islands from Belgium
Can I form a company in the Cayman Islands from Belgium?
Yes, Belgian residents and businesses can incorporate a company in the Cayman Islands without needing to be physically present. The incorporation process is straightforward and can be completed remotely through a registered Cayman Islands service provider. The most common structure for international business purposes is the Exempted Company, which offers flexibility and minimal reporting obligations.
Does Belgium have any tax treaties or agreements, such as DTA (double taxation agreements), with the Cayman Islands?
Belgium does not have a double taxation agreement (DTA) with the Cayman Islands. This means that income earned through a Cayman Islands entity is not covered under Belgium’s tax treaty network. As a result, Belgian tax residents must carefully consider how income from a Cayman-registered entity is treated under Belgium’s domestic tax laws, particularly in relation to foreign earnings and potential tax obligations.
Does the Cayman Islands share any details with the Belgian government and authorities?
The Cayman Islands does not have an automatic tax information exchange agreement with Belgium, but as a member of the OECD’s Common Reporting Standard (CRS), financial institutions in the Cayman Islands are required to report the financial details of Belgian tax residents to Belgian authorities. Additionally, under the Economic Substance Regulations, certain Cayman Islands companies may need to demonstrate sufficient local substance depending on their activities, which could be reviewed by international tax authorities.
Does Belgium recognise the company documents issued by the Cayman Islands?
Yes, Belgium recognises company documents issued by the Cayman Islands, provided they are authenticated through an Apostille. Both Belgium and the Cayman Islands are members of the Hague Apostille Convention, meaning that documents such as incorporation certificates, memorandum and articles of association, and director resolutions can be certified in the Cayman Islands and legally accepted in Belgium without further legalisation. This facilitates smooth cross-border business operations and compliance.
Do I need any approvals from the Belgian government to incorporate a company in the Cayman Islands?
There are no specific restrictions requiring Belgian residents or businesses to seek prior approval from the Belgian government before incorporating a company in the Cayman Islands. However, Belgian tax residents must comply with local tax reporting requirements, including declaring foreign corporate interests to the Belgian tax authorities. Additionally, failure to properly declare offshore income or assets could result in penalties under Belgium’s anti-tax avoidance laws.
Can I open a bank account for my Cayman Islands company in Belgium?
Yes, you can open a bank account for your Cayman Islands company in Belgium, provided the bank accepts offshore corporate entities. The Cayman Islands does not impose any restrictions on where companies hold bank accounts, allowing flexibility to choose a convenient jurisdiction. Belgian banks may conduct enhanced due diligence when dealing with offshore structures, requiring proof of business activities, beneficial ownership, and source of funds. If you already have an existing banking relationship in Belgium, this could simplify the account opening process.
Can I operate my Cayman Islands company from Belgium?
Yes, you can manage and operate your Cayman Islands company while residing in Belgium. However, if the management and control of the company are determined to be effectively carried out from Belgium, Belgian tax authorities may consider it as tax resident in Belgium, potentially subjecting it to Belgian corporate tax. Proper structuring and documentation are necessary to ensure compliance and mitigate risks related to foreign entity taxation.
Are Cayman Islands companies blacklisted or restricted in Belgium?
Belgium follows the EU’s list of non-cooperative tax jurisdictions, and the Cayman Islands have previously been included at certain times. If the Cayman Islands are on the EU blacklist, Belgian authorities may impose additional reporting obligations, withholding tax requirements, or restrictions on transactions with Cayman-registered entities. It is advisable to monitor updated Belgian regulations to assess any implications for trade, taxation, or banking.
Can a Cayman Islands company hold property or real estate in Belgium?
Yes, a Cayman Islands company can own real estate in Belgium. However, Belgian tax authorities scrutinise foreign-owned properties for potential tax avoidance. The profits and capital gains from the property are generally taxable in Belgium, and property ownership may trigger additional compliance obligations, such as beneficial ownership disclosures and annual tax filings. Proper legal structuring and tax planning are essential when using a Cayman Islands entity for real estate investment in Belgium.
Can I hire employees in Belgium through my Cayman Islands company?
Yes, a Cayman Islands company can employ workers in Belgium, but this may create a taxable presence (permanent establishment) in Belgium, potentially subjecting the company to local corporate tax, payroll tax, and social security contributions. Employers must comply with Belgian labor laws, which include employee rights, contracts, and tax obligations. Engaging a local payroll provider or establishing a Belgian branch may be required for compliance with employment regulations.
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