As an expat in Belgium, you are also affected by the local tax system. Resident or non-resident, some taxes will need to be paid. Here is the essential information you need to understand your tax obligations.
Taxes you may have to pay in Belgium
Anyone residing in Belgium is subject to Belgian taxes.
The type of tax you will pay depends on several factors: your residency status, the location of your residence, and whether or not you own a business in Belgium.
Local Taxes
There are local income taxes in Belgium. They range from 0 to 9%, but the overall average is 7%.
Each Belgian commune sets its own rates. Therefore, the amount of local tax payable may differ even if you move to a neighboring city. If you are considered a non-resident, communes will charge you a flat rate of 7%, and a municipal tax might be levied on your exempt foreign income (More information on non-residents and taxes in the next section). These local taxes are used for public services, such as garbage collection and water.
VAT
VAT is the tax you pay when you supply goods and services. This means that if you are an entrepreneur or a freelancer, you will need to charge and pay VAT. VAT is also known as Value Added Tax in English and Belasting over de Toegevoegde Waarde in Dutch (or BTW).
The standard VAT rate is 21%, but there are exceptions. For example, if you are in the catering business, the VAT is only 12%. Other basic goods (such as water, medicines, and books) have a 6% VAT rate. It is even possible to obtain a 0% rate if you sell recycled goods and publications (whether daily or weekly), for example.
The good news is that if you charge VAT, you can also claim a refund in some cases. You might not even have to pay it in certain situations. For instance, if you do business with another VAT-registered company in the European Union (EU), the customer will pay for it. The VAT will be what their own country imposes, not Belgium. This also means that if you purchase goods from a VAT-registered company in the EU, you will have to bear the cost.
Taxes on Investment Income
If you have interest and dividends that are paid and received through a Belgian institution, you will need to pay taxes on this investment income. The standard rate applied is a flat withholding tax of 30%.
The good news is that your dividend payments are tax-exempt for the first €800. If you have money in a regulated savings account, the tax exemption is up to €980 in interest per year. Beyond this amount, the excess is taxed at 15%. If you have interest and dividends from countries other than Belgium, you are legally required to declare them on your annual tax return. The Belgian government will then review the net amount and inform you of the amount to be paid.
Taxation of non-resident foreigners in Belgium
Belgium welcomes immigrants, and people who settle permanently in Belgium must register with their commune. This registration in the foreigner's register requires them to pay taxes in Belgium.
A foreigner residing for at least six months (the equivalent of 183 days) in Belgium and registered in their local commune will need to pay taxes on all income received, including that generated abroad. Those who reside in Belgium for less than six months are not considered tax residents. Only the income they receive in Belgium will be taxable, including capital gains and rents. If you are a legal Belgian resident but only work temporarily in Belgium, you may be able to apply for a special regime where you only pay taxes on the income you generate in Belgium, rather than on all your income generated elsewhere.
Foreigners and even Belgians earning income elsewhere than in Belgium should inquire about double taxation. The good news is that Belgium has more than 90 agreements with other countries that prevent their citizens from being double taxed if they reside in Belgium. It is therefore worth examining, especially if you are considered a legal resident in Belgium.
What to declare as a non-resident in Belgium?
Non-residents in Belgium must declare:
- Any income from the exploitation of real estate in Belgium;
- Any allowances and income from Belgian institutions;
- Any profit or income from an activity carried out on Belgian soil;
- Any real estate income, pension, annuity, and allowance from:
- A company or organization established in Belgium;
- A Belgian establishment owned by a non-resident;
- Residents of Belgium;
- The Belgian State or its political branches.
Income tax rate in Belgium for individuals
For individuals, there are four distinct tax brackets in Belgium. The tax rate varies between 0 and 50%, depending on the individual's income.
Here are the figures for the 2025 tax year (2024 income):
- 25% tax rate: For an income bracket between 0 and €15,820.
- 40% tax rate: For an income bracket between €15,820 and €27,920.
- 45% tax rate: For an income bracket between €27,920 and €48,320.
- 50% tax rate: For an income bracket above €48,320.
As you can see, Belgian income taxes are somewhat higher than in some other Western countries. However, all taxpayers benefit from a tax deduction of €9,270 per year. If you have children, this amount will be even higher. You may even be eligible for a maximum tax refund of €4,880 as an employee.
Moreover, you will note that the amount you have to pay as income tax is not only calculated from your gross salary. The calculation is based on the income you have left after paying any mandatory social contributions you may be subject to, in Belgium or elsewhere.
Finally, your personal income tax (PIT) is based on both the federal PIT and the regional PIT. Some Belgian regions will charge less or more for tax liability. The amount will depend on where you reside on January 1st of the fiscal year. If you wish to estimate how much you will owe in a given year, you can use the tax calculator of the Federal Public Service Finance. The website is available in Dutch, French, and German.
Corporate tax rate in Belgium
Before 2021, companies paid 29% tax, plus a 2% surcharge. If you are a business owner in Belgium today, you are in luck, as corporate taxes are much lower. For this year, you will pay only 25% as a base rate if you make more than €100,000 in profits. If you earn less, your rate will be reduced to 20%.
Tax reliefs and benefits in Belgium
Some expats coming to work in Belgium may benefit from tax advantages, especially if they fall into the category of impats. This special tax regime applies to workers recruited abroad to perform a function in Belgium (senior executives, managers, experts, highly qualified profiles, etc.).
To benefit from this impatriation regime, several criteria must be met:
- Not having been a tax resident in Belgium in the past five years;
- Being recruited directly from abroad;
- Receiving an annual gross salary of at least €75,000 (except for exceptions, such as researchers);
- And that the employer makes the request within 3 months of arrival in Belgium.
If you are eligible, part of your salary may be tax-exempt, as well as certain expatriation-related expenses (housing, school fees, cost of living, etc.). The tax administration considers that a non-taxable flat-rate allowance of 30% of the gross salary may be granted, within a certain limit.
Good to know:
This impatriate tax regime replaces the former special tax regime for foreign executives since January 2022. It is valid for a maximum duration of 5 years, extendable by 3 years under conditions.
Tax deductions applied to family expenses have been voted in Belgium. They are as follows:
- €1,490 for one child;
- €3,820 for two children;
- €8,570 for three children;
- €13,860 for four children;
- €5,290 for each child after the fifth;
- €550 additional for each child under 3 years old;
- €1,490 additional for single-parent families.
How to pay your taxes in Belgium
Professional income taxes are withheld at the source. The tax year starts on January 1st and ends on December 31st.
In May or June, you will receive a tax return either by mail (aangifte in Dutch), or directly via your online space MyMinfin.be.
If you opt for the paper version, you must return it duly completed by June 30th. For an online declaration, the deadline is often extended until mid-July, or even mid-October for certain profiles (self-employed, foreign income, non-residents). Always check the exact date indicated in your personal space.
Residents of Brussels and surrounding communes, and those of the Walloon Region receive their tax return in French. Residents of Flanders have a Dutch version. If you do not receive your tax return on time, you must contact your tax office or town hall.
You can send your return by mail or submit it online via . In case of impediment, an extension request can be submitted via MyMinfin, usually before June 1st.
Every taxpayer in Belgium can pay by postal order, crossed check, bank transfer, or advance payment. You cannot pay taxes with a credit or debit card or in cash. As non-residents, you will have until the end of September or October if you request an extension.
If you fail to file your return on time, you risk a fine. Moreover, the tax administration may estimate the amount of tax due itself and demand immediate payment.
Taxation of the self-employed in Belgium
In some countries, you are taxed differently depending on your status as a self-employed worker or an employee. In Belgium, you will not have to worry about this. Everyone is treated the same. Regardless of your status, whether you are self-employed or an employee, you are taxed at the same income tax rate.
Paying taxes as a self-employed Worker
Although you pay the same income tax rates as employees, you will not pay income tax in the same way they do. To be self-employed, you will need to register yourself with the tax administration, as well as with the VAT administration if you carry out a taxable activity. To do this, you will need to go to a business counter (ondernemingsloket in Dutch).
Unlike employees, you will not automatically receive a pre-filled declaration. It is up to you to send your own tax return each year. It is therefore essential to keep all your invoices, receipts, and accounting documents to be able to declare your income correctly and justify your business expenses.
Other important types of taxes in Belgium
There are other types of taxes that you may or may not encounter during your stay in Belgium. Here are the ones you should know.
Inheritance Tax
This tax applies to the transfer of wealth in the event of death. You may be subject to it even if you are not a Belgian tax resident, as long as you own real estate in Belgium.
The tax rate varies greatly depending on the region (Brussels, Flanders, or Wallonia) and the relationship to the deceased. It is calculated based on the inherited share and the value of the estate. The deceased's tax residence in the last five years determines the region that applies the tax rates.
Gift Tax
When you give a valuable asset (money, real estate, stocks, etc.) to another person, they may be liable for gift tax. As with inheritance rights, the rates depend on the region where you live at the time of the gift.
For example:
- In Wallonia, rates range between 3.3% and 5.5% for gifts between close relatives.
- In Brussels, they can range from 3% to 40%, depending on the amount and the relationship.
Important:
If you make a donation without officially registering it (manual or bank donation, for example), and you die within three years following, the beneficiary will then have to pay inheritance tax on the amount or asset received.
Help with tax declarations in Belgium
Because it is not always easy to fill out a tax declaration form, Belgium has developed an excellent support service. Brochures explaining how to proceed are automatically sent with your tax return form.
Some specific questions may require the help of specialized agents. You can request assistance from your local tax center; the postal address is on the tax return form. However, these professionals are only available during the period when taxpayers must complete their forms and are only available two and a half days a week.
You can also call the FPS Finance (Ministry of Finance) at (32) 2 572 57 57 (local number) from 8:00 AM to 5:00 PM.
For more personalized information, we recommend contacting an accountant. They are called expert-comptable or tax accountant or belastingconsulent in Dutch.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
