Taxation on Saving Money

Hello,

Withholding tax (PM)
You are required to pay a tax on income from movable property, such as interest generated by a savings account. This tax on income is called the withholding tax. The bank withholds withholding tax before paying interest on the savings account.

Tax Exemption
The savings account is regulated by the public authorities. Interest on savings accounts is therefore exempt from taxes. For 2018, the exemption is capped at 960 euros per person. This amount is subject to change each year.

If the account is in the name of two spouses or legal cohabitants, the exemption amounts to 1,920 euros per year (double exemption).

You can also benefit from the dual exemption if you hold a joint savings account with a person with whom you are not married or do not lawfully cohabit, for example your brother or sister. To do this, you must go to your CBC bank branch and complete a "certificate of double exemption from withholding tax".

Withholding of withholding tax by the bank
The bank is required to withhold 15% withholding tax on interest exceeding the ceiling. This withholding tax is "discharge" for individuals, which means that it will no longer be mentioned in the personal income tax return.

Thank you for this useful information, this explanation lead to another question: what is the interest rate on the saving accounts? For example if I have 100 thousand euro in the saving account what will be the interest rate and the tax to be paid?

Many thanks in advance

Your new question must be asked of the bankers. Because following what you will bring them as investments, they will make you offers ...

Only they will be able to offer you interesting financial packages.