Belgium is an exciting opportunity for expats seeking a central European location with a high standard of living, excellent infrastructure, and rich cultural diversity.
In this guide, we’ll walk you through everything you need to know about relocating to Belgium from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Belgium follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if your main residence is located in Belgium during the tax year.
if you are registered with the Belgium resident commune during the tax year.
if your family reside in Belgium during the tax year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Beglium, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Belgium has 95 double taxation agreements signed.
