Netto Salary Estimate Required

Hi,

Belgium has a very high tax rate. The netto salary varies and depends on the family composition and if your spouse also works or not. Normally with one child the net monthly salary will be approx 2500/Euro + around 200 - 250 euro if your wife does not work + roughly 200-250 euro for expat tax-regime. You can also simulate from sites like :
https://www.admb.be/fr/admb/e-tools/calcul-brut-net

This does not look much but it's normal per belgian standards but good thing for you ,that you will have other benefits (car , petrol , vouchers etc).

Just one thing about housing , the rents specially in Brussels is on higher side roughly 750/euro - 1100/euro.

cheers,
-Chattha

Hello Thanks for the reply,

The estimate I got from the company that is for my monthly gross of 5000 Euro , my net monthly is 3300€  based on my situation and taxation. The location would be Sint Truiden (60 kms from Brüssels ) Do you think I have a good offer ?

If you get that amount netto, it is a good offer.

Hi Raj,

It depends on how much your tax free allowances amount to. The max tax free allowance you can get is 11250 euros ..In order to reach that max level of tax free  you need to take a higher rented appartment (900-1100 euro) or preferably a house (as maintenance cost are not counted) and try to strike a deal with the owner to bear the cost of electricity etc  all inclusive in the rent. Since you have a dependant spouse and a kid you will also get the benefit of dependant spouse allowance and you will definitely be able to get approx 3000 per month x13.92 . Just pay attention to the car co2 emmissions as it might result in lowering that 3000 per month.

I have a tax free allowance  of 20k,  depends on your family composition your tax free salary.

@schoolmum : Indeed  forgot to mention earlier that the reimbursement for expenses for child education and care are above the 11250 euro  tax free allowances and donot have a limit.

Thanks Gajendra , This is exactly the calculation: the employer Hr says I will get 3700 EUR as net salary.. do u think so.. here is what is written on contract....The gross salary of the employee complies with the application of the special tax regime for foreign executives (Circular August 8, 1983). It has been set on a gross monthly salary of 4797,9 (including 1/12th of a 13th month and 1/12th of the double holiday allowance) gross yearly salary 57574,79 subject to the social security, taxes and any other form of contribution Dissection of the monthly pay gross base salary of € 4136,12 1/12th of a 13th month of € 344,68 1/12th of the double holiday allowance of€ 317,1 The abovementioned gross remuneration includes but is not limited to a Cost of Living Allowance for the difference in cost of living between the country of origin and Belgium, a Housing Allowance for the difference in housing costs and a Tax Equalisation Allowance for the difference in taxes between the country of origin and Belgium, as is stipulated in the so-called Technical Memorandum issued by the tax administration. These costs are considered a reimbursement of costs proper to the employer

Hi Raj,

That much amount is possible 3700x12 provided you reach the ceiling of 11250 euros tax free allowance

Cost of Living Allowance - This normally at your salary would be around 850 to 900
a Housing Allowance for the difference in housing costs -
for eg your rent in belgium =850 per month  (excluding maintenance cost)
Total yearly Belgian rent = 850*12= 10200
Notional Rent as per your salary in belgium would amount to = 2000
Difference in housing cost in belgium and home country = 10200-2000 = 8200
Tax Equalisation Allowance = Since you have  dependent spouse the indian tax comes out to be more than belgian tax on the notional income( = (Gross salary*35%)/1.15) so this is always 0.

So total tax benefit = 8200 + 850or900 euros.= ~ 9000 euros

So summary is like this

Your gross = 57k
Tax free = - 9000
remaining amount for social security = 57000 - 9000= 48000
social security = 13.07%48000 = 6273
taxable income = 41727

spouse tax calculation
Since you have wife a dependent  she will be assigned 10250 euros from this 41727
Personal allowance for spouse  = 7380
She will pay 750 euros tax on this amount
Netto after tax= ~ 9500

For the remaining amount i.e 41727 - 10250 = 31477 you will pay taxes
Since you have a child your personal allowance = 7070+1500 = 8570
your tax approx =7000
So total netto after tax = 31477 - 7000= ~ 24477


So your netto salary = 9500 + 24477 + 8200= ~ 42k /12 = 3500

Plus this might vary a bit (poisitively) as there are some tax benefits on pension amounts .
But do take company car tax into consideration it might result in a difference(negative)  of 800-900 euros per year.

Hope that clears out things .

If you have any questions you can directly IM me.

Hello Gajendra,

I red the valuable information you provided and I would like to have your support with some questions due I have a similar situation...
I'm Mexican, Married (dependant sopuse), no kids,  I have a job offer 6,200 EUR gross/month + Company Car + Lunch vouchers
Contract would be of indefinate duration

1.  11250 tax free allowance: why do you suggest to rent a flat between 900-1100 EUR? and how is the calculation? due my contract would be of indefinate duration could be an issue to get this benefit? I found some information that indicates 4 qualifying conditions have been met, 1 of them as follws:
•The expatriate must be temporarily employed in Belgium by an employer that is part of an international group of companies.

2. Company Car:  They made an estimation for BIK 2800 EUR, do you recommend to negotiate "have no car" and instead of that ask for an increase in monthly salary for public transportation ?

Thanks in advance.
Regards,
Karla

Hi Karla,

I hope you have not calculated the per month by dividing gross salary by 12 month to arrive at the figure of 6200/ month.

As long as the employer is part of an international group it should not be a problem to get the Special expat tax status. An Indefinite contract doesn't mean permanent stay . But it is up to your Employer to file for this special tax status.

Also if you are in research field the max tax free allowance can be upto  EUR 29750.

As I mentioned that  the tax free allowances is sum of the below  three things

1. Cost of living expense differential :

This is equal to 5% of Basis Salary
Where Basis salary = (Gross yearly salary * 35%)/(Coefficient dependent on country) 
for my country the coefficient is 1.15

Max Cost of living differential = 2500 EUR

2. Cost of housing differential : This is calculated as

Actual Yealy rent paid (not including the maintenance cost) - notional rent you would have paid in home country

The notional rent paid in home country is calculated as 12% of Basis Salary.  (not sure if the % differs from country to country)

3. Tax differential in home country and belgium :
for this calculation 35% of Basis salary is taken into consideration and a tax simulation is run on this amount in belgium and in your home country . If the amount of tax paid in belgium is > tax paid in home country then the  difference is the amount you can add to the tax free allowance.

Max Tax free allowance ( 1 + 2+3)  = 11250 eur.

typically the point 2 is the main differentiating factor as it contributes almost  70% of the total tax free allowance.  At your salary I think you can go even for a bit more expensive accommodation as its all relative to your salary.


For the company car you could choose to not have a car and in turn have a gross amount added to your salary or take a public transport subscription.  But it is totally up to the  Employer if they do provide this facility or not . For Gross amount it is a bit expensive for the employer as they have to consider that in 13 month salary and holiday bonus. 


Thanks
G.

Many thanks a lot for your help 

Hi,
Did you move to Belgium? I have an offer as well where my monthly gross is 3600 and yearly gross with 13.92 is 50112 with a company car. Any idea how much would be the monthly net with nonworking wife and a child?