For Belgian nationals investing in a US business on an E-2 visa

E-2 Investors From Belgium: Tax on the Business, the Investment and You

Investing in a US business from Belgium on an E-2? The visa is about immigration, but the tax questions start the day you fund the company: which entity, how the money goes in, and when the US starts taxing you on everything.

E-2 treatyForm 1120Form 5472BE-13Tax residence
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Quick answer

Is an E-2 investor from Belgium a US tax resident?

Usually yes, once living in the US for most of the year. E-2 is not an exempt-individual category under IRS Pub 519, so your days count under the substantial presence test, and a resident is taxed on worldwide income. If Belgium also treats you as resident, Article 4 (Resident) of the treaty breaks the tie. Your company files its own returns: Form 1120, and Form 5472 while it is foreign-owned.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

E-2 treaty with Belgium
In force since October 3, 1963 (State Department)
Company
US corporation (Form 1120) or LLC; Form 5472 while foreign-owned
Your tax residence
Substantial presence test; E-2 days are not excluded
Treaty tie-breaker
Article 4 (Resident)
Social security agreement
Yes, since July 1, 1984

E-2 from Belgium: the basics

Belgium is on the State Department list of E-2 treaty countries; the E-2 treaty with Belgium entered into force on October 3, 1963 (State Department). USCIS sets out the main conditions (USCIS):

  • you must be a national of the treaty country;
  • you must have invested, or be actively investing, a substantial amount of capital in a real, operating US enterprise. USCIS does not state a fixed minimum: the amount is judged against the total cost of the business, and the lower the cost, the higher the proportion expected;
  • the enterprise may not be marginal, meaning it must have the capacity to earn more than a minimal living for you and your family;
  • you must be coming to develop and direct it, shown by at least 50% ownership or operational control.

Immigration questions belong with your immigration lawyer. We handle the tax side: the company, the money you put in, and your own US returns.

Structuring the E-2 business from Belgium

The structure you choose in the US decides the filings, not the visa. A corporation files Form 1120 every year (IRS). An LLC follows Treas. Reg. section 301.7701-3: disregarded with one owner, a partnership with more, or a corporation if it elects (IRS). Foreign ownership adds Form 5472 and its US$25,000 penalty (IRS), and a new business set up by someone from Belgium generally needs a BE-13 within 45 days (BEA rule).

Capital or loan

The money you bring from Belgium can go in as capital (shares or membership interest) or as a loan to the company. For tax reporting, the difference matters: while the company is foreign-owned, loans from you, the balance outstanding and any interest are related-party transactions on Form 5472 (IRS). Keep a loan agreement and bank records for every transfer.

Taking money out before you are resident

While you still live in Belgium, dividends and interest from your US company are not reported on a US return the usual way: the company withholds, at 30% unless the treaty gives a lower rate (IRS Pub 515).

Payment to a resident of BelgiumGeneral treaty rate (IRS Table 1)Treaty citation
Dividends from a US corporation15%Article 10(2)
Interest on a loan you made to the company0%Article 11(1)

Rates from IRS Tax Treaty Table 1 (Rev. May 2023). The IRS notes the table is not a complete guide to eligibility; the treaty's conditions, including any limitation on benefits, must be met. Once you are a US resident these rates no longer apply to you.

Are you a US tax resident on an E-2 from Belgium?

This is where E-2 investors from Belgium are most often surprised. The visa is nonimmigrant, but tax residence is decided only by Code section 7701(b), and E-2 days are not excluded (IRS Pub 519). Live here most of the year and you are a US resident, taxed on worldwide income from your residency starting date. If Belgium also treats you as resident, Article 4 (Resident) of the treaty is the tie-breaker; relying on it on a US return needs Form 8833 under Treas. Reg. section 301.7701(b)-7 (IRS). For social security, the US and Belgium have an agreement in force since July 1, 1984 (SSA); a certificate of coverage can keep you in one system (Pub 519).

Once you are resident: the yearly list

  • Form 1040 on worldwide income every year you are resident, including income from Belgium.
  • FBAR and Form 8938 for accounts you keep in Belgium; see FBAR and FATCA and Form 8938.
  • Form 5471 if you keep control of a company in Belgium: a US person controlling more than 50% of a foreign corporation is a Category 4 filer, with a US$10,000 penalty per year for not filing (IRS). See Form 5471.
  • Funds held in Belgium can be PFICs; see PFIC and Form 8621 for how the rules work.
  • Once you are a US resident you are no longer a foreign person for Form 5472, which the IRS defines as an individual who is not a citizen or resident (IRS). Whether the company still files depends on who else owns it.

Sources for E-2 investors from Belgium

Treaty

  • The IRS lists the 2006 income tax treaty, amended by a protocol listed for 2006. General effective date (IRS Table 3): treaty Jan. 1, 2008 (IRS treaty documents for Belgium; treaty text; IRS Table 3).
  • Residence and tie-breaker: Article 4 (Resident).
  • Article 7 (Business Profits), business profits.
  • Article 10 (Dividends), dividends.
  • Article 22 (Relief From Double Taxation), relief from double taxation.

US law and E-2 rules

  • E-2 status: State Department treaty countries (E-2 with Belgium in force since October 3, 1963); USCIS E-2 Treaty Investors, 8 CFR 214.2(e).
  • Tax residence: Code section 7701(b) (Pub 519). Treaty residence: Treas. Reg. section 301.7701(b)-7 and Form 8833 (IRS).
  • Company filings: Code section 6038A and Treas. Reg. section 1.6038A-1 for Form 5472 (IRS); Treas. Reg. section 301.7701-3 entity classification (IRS); 15 CFR 801.7 BE-13 (eCFR).
  • Foreign companies you control: Form 5471 (IRS).

The tax rules of Belgium on leaving or keeping assets there also apply; a local adviser covers that side.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares the E-2 company's returns (Form 1120 or the LLC filings, Form 5472, BE-13) and your own first-year and ongoing US returns. Immigration filings stay with your lawyer. Written quote first.

E-2 investors from other countries

All countries: E-2 investor tax by country. From Canada: E-2 taxation for Canadian founders. Moving without an E-2: moving to the US, by country.

Common questions

How much must an E-2 investor from Belgium invest?

USCIS does not set a fixed minimum. The investment must be substantial in relation to the total cost of the business, and the lower the cost, the higher the proportion expected. The enterprise may not be marginal. Your immigration lawyer advises on this.

Does an E-2 investor from Belgium pay US tax on worldwide income?

Usually yes, once resident. E-2 is not an exempt-individual category, so the substantial presence test applies, and a US resident is taxed on worldwide income from the residency starting date.

What if Belgium also treats me as resident?

Article 4 (Resident) of the treaty decides residence for treaty purposes; claiming it on a US return needs Form 8833.

Does the E-2 company file Form 5472?

A US corporation that is 25% or more foreign-owned files Form 5472 with Form 1120, and a single-member LLC files it while its owner is a foreign person. Once you are a US resident you are no longer a foreign person for this purpose.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

Related guides: E-2 for Canadian founders, For immigration lawyers, Moving from Belgium.

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