You can find some general information on income tax rates, in relation to Belgium on this page. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double-taxation treaties.
Income Tax Base For Residents and Non-Residents of Belgium
- Residents of Belgium
- are subject to personal income tax on their total income, from all sources. Rates vary between 25% and 50%. Residents also pay additional municipal taxes at rates varying between 0% and 9% of the total payable income tax.
- Non-residents of Belgium
- are subject to personal income tax on Belgian source income only, notably on Belgian source professional income and on property income located in Belgium and on any Belgian source investment.
Individuals will be regarded as tax residents if:
- Their main home or center of economic interests is in Belgium.
- They are registered within the civil register.
- They are present in Belgium for more than 183 days in any 12-month period.
Allowable Deductions and Tax Credits
To know the requirements for expenses that are deductible in personal income tax, consult the portal of the Belgian Government.
Special Expatriate Tax Regime
Any expatriate employed in Belgium will normally be liable towards Belgian Income Tax. Additionally, gift duty, property tax and succession duty can be relevant also. Residents of Belgium pay personal income tax on their total income from all sources worldwide on a sliding scale. Residents are also liable to pay communal and regional taxes at rates between 0% and 8/5% of the total tax payable from income. Alongside this, the special expatriate tax status also offers two imperative tax benefits to foreign executives: the “tax free expatriation allowances” and the “travel exclusion”.
Capital Tax Rate
- A 15% withholding tax is imposed on earnings from mutual funds investing more than 40% of their assets in interest-bearing securities.
- Inheritance tax ranges between 3% and 30% in Wallonia and Brussels regions with 3% to 27% in Flanders.
- A 16.5% tax is payable on gains on property held for less than 5 years.
- There is no wealth tax in Belgium.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
- Services Publics Fédéral des Finances (FISCUS), (List of the double Taxation Treaties)
- Withholding Taxes Dividends:
- 25% (15% for certain category of shares), Interest: 25% (A 15% rate applies to interest on certain government bonds and interest from regulated savings deposits in excess of the tax-exempt amount), Royalties: 25% (Rate is 15% for income from author’s and neighboring rights and from legal and compulsory licenses).
- Bilateral Agreement
- The United Kingdom and Belgium are bound by a double taxation treaty.
Usually by the 30th of June of the assessment year.
Figures Based on Sources
- Services Publics Fédéral des Finances (FISCUS), Tax Administration.
- Belgium Ministry of Finance