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IMPACT – MEDIUM
What is the change? Salary thresholds for highly skilled foreign employees, executive-level personnel and EU Blue Card holders will increase slightly beginning Jan. 1, 2016.
What does the change mean? The 2016 gross annual salary minimums for B permits are: €39,824 for highly skilled employees and €66,442 for executive-level personnel. The new salary minimum for EU Blue Cards is €51,494.
Background: The salaries are indexed annually according to contract salaries. The 2016 salary thresholds are approximately 0.5 percent higher than 2015 rates (€39,802 for highly skilled employees, €66,406 for executive-level managers, €51,466 for EU Blue Card holders).
BAL Analysis: Employers should follow the new salary requirements for foreign workers in 2016. Applications that do not meet the salary thresholds will be rejected.
This alert has been provided by the BAL Global Practice group and our network provider located in Belgium. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? New government administrative fees, popularly known as the “foreigners’ tax,” have taken effect in Belgium.
What does the change mean? Foreigners are now subject to the new fees as part of their applications for long term type D visas or residence permits.
Background: The Belgian Parliament proposed the new fees in December, citing the increased cost of administering a growing number of residence permit applications. The tax took effect March 2.
The new government fee for work permit holders, researchers and EU Blue Card applicants is €215. The fee for family dependents of work-permit holders and students is €160. Swiss and EEA nationals and their family members (with the exception of Belgian nationals’ family members) are exempt.
Along with payment, the bank transfer must include the applicant’s name, date of birth, nationality and reason for requesting residence in Belgium. A receipt for full payment must be included in the residence permit application. If only partial payment is made, the applicant has 30 days to pay in full.
BAL Analysis: Companies and their employees should budget for this new tax and make sure it is paid on time to avoid delays. Residence permit applications lacking a receipt for payment will be rejected.
This alert has been provided by BAL Global Practice group and our network provider located in Belgium. For additional information please contact your BAL attorney.
IMPACT – LOW
What is the change? The Belgian government has proposed imposing a new fee on foreign workers applying for residence permits.
What does the change mean? Under the current proposal, foreign nationals would have to pay a fixed sum as a “mandatory contribution to administrative costs” when applying for residency.
Background: The mandatory fee, popularly known as the “foreigners’ tax,” is meant to offset the government’s costs of administering a rising number of residency applications. The proposed tax would be a prerequisite for residence authorization applications by foreign nationals applying abroad or from within Belgium. Those subject to the new fee include foreign work permit holders, their family members, EU Blue Card applicants, researchers, students and others. Some foreigners, including European Economic Area and Swiss nationals, would be exempt.
While the amount of the fee has not been disclosed, Belgium’s Secretary of State for Asylum Policy and Migration has indicated in an interview that nearby countries impose a similar fee of €100 to €300.
BAL Analysis: If the fee is adopted, employers and foreign workers will have to budget for the added cost of applying for residency in Belgium.
What is the change? Belgium has raised the 2014 minimum salary for the European Union Blue Card.
What does the change mean? To qualify for the EU Blue Card, holders must now earn at least €50,974.
Background: A royal decree published in the Belgian Official Journal on Jan. 24, 2014, provided a new formula for annual adjustment of the Blue Card salary threshold. The new formula raises the minimum salary requirement for foreign workers participating in the EU Blue Card program from €49,995 to €50,974. While the new threshold has not yet been officially confirmed, it is safe to assume that it is currently in effect. Going forward, those applying for new or renewal Blue Cards who do not meet the new minimum salary may be rejected.
BAL Analysis: Governments periodically adjust minimum salary requirements. The 2014 minimum salary represents a nearly 2 percent increase over the previous rate.
What is the change? The Belgian government has simplified procedures for foreigners to renew their residence permits. Renewals will now be filed directly with the Federal Foreigners’ Office and be valid for a longer period of time.
What does the change mean? The changes are likely to reduce processing time for residence permit renewals.
Background: In November, Belgian Secretary of State for Asylum and Migration Maggie De Block announced a new simplified process for residence permit renewals in her speech to Parliament. The Federal Foreigners’ Office has begun applying the new process, despite lack of an official public announcement.
This change represents a streamlining of the residence permit renewal process. Previously, applicants had to file at the local town hall, which forwarded the application to the Federal Foreigners’ Office. It is still permissible to file at the town hall, but this will take longer to process. The new, direct filing process is expected to decrease processing time, but it is not known yet by how much. Third parties are allowed to apply on behalf of employees. No matter where the application is submitted, it is predicted that the applicant will be required to appear in person at the local town hall to collect his or her residence permit, although this step has not been explicitly clarified.
The new procedure also extends the validity of some residence permits to a maximum period of three months beyond the date of expiry of the work permit. Previously, all residence permits were valid for only one month beyond work permit expiration. Foreign workers seeking to renew their residence permits must submit their applications at least three months before expiration of the original residence permit.
BAL Analysis: Employers should benefit from these changes which will reduce processing times and necessitate residence permit renewals less often.
IMPACT – Medium
What is the change? A proposed law will shift power from the federal government to the three regions of Belgium to control and regulate their own work permit processes.
What does it mean? The three regions – Brussels, Flanders and Wallonia – will have legislative powers over their work permit procedures, how they regulate work permits, and over inspection and compliance of companies holding work permits.
Background: The Belgian Parliament is currently considering the bill which would transfer some legislative powers over work permits from the federal government into the hands of regional governments.
Currently, federal laws control immigration matters such as foreign residence permits, work permits for employees, and professional cards for the self-employed. The three regions of Brussels, Flanders and Wallonia only have the authority to issue work permits.
The draft law will give power to regional authorities to legislate Type A and Type B work permits, as well as professional cards. This would include the power to carve out activity-based exemptions from work permits and professional cards. The federal government would maintain legislative authority over Type C work permits (those are issued based on the employee’s specific residence), including the power over residence-based exemptions from work permits and professional cards.
A version of the draft law was approved by the Senate on Nov. 28. A commission within the Chamber of Representatives approved the bill in its current form on Dec. 16. The Chamber of Representatives must still approve the draft law.
BAL Analysis: If it passes as is, the law could create a patchwork of work permit rules based on regional regulations. It is also unclear how the new European Union single permit for work and residence will be processed, if power is split between the federal government (which controls residence permits) and regional authorities (which will control work permits under the new law).
This alert has been provided by the BAL Global Practice group and our network provider located in Belgium. For additional information, please contact GlobalVisaGroup@bal.com.
What are the changes? The Belgium government has increased minimum salary levels for highly-skilled and executive foreign employees under the Type B visa category.
What does the change mean? The change is an annual adjustment that reflects inflation and will take effect on Jan. 1, 2014.
Background: The minimum salary increases were published in the Belgium Official Journal on Oct. 25, 2013, and reflect a nearly 2 percent increase to existing minimum salaries.
Highly-skilled employees must be paid a minimum of 39,422 euros per year, up from 38,665 euros per year. Executive-level personnel must earn a minimum base salary of 65,771 euros, increased from the current minimum annual salary of 64,508 euros.
BAL analysis: Employers risk rejection of work permits for highly-skilled and executive-level workers under Type B visas if they do not comply with the new minimum salary rules. Employers are encouraged to review the salaries of current expats and assignees in Belgium and confirm that they are in compliance with the new requirements.