In this article we’ll dive into the details about Belgium tax residency and maybe more important we’ll also discuss how to end your tax residency there.
Tax Residency in Belgium at a Glance
- Tax residency is based on factual circumstances
- Progressive income tax rates up to 50%
- Separate fixed tax rates for investment income
- High social contributions
- Standard corporate tax rate of 25%
- Possibility to lower your taxes via the expat regime or opening a company
Tax Rules and Rates in Belgium
Let’s have a look at the different tax rules and rates you’ll have to deal with in Belgium.
Tax Residency in Belgium
The first element is the criteria for tax residency. In other words, in which cases do you qualify as a tax resident of Belgium and do you have to pay tax there.
You qualify as a Belgian tax resident if you meet one of the following criteria:
- You have your place of residence in Belgium.
There is a presumption this is the case when you or your legal partner are registered with the population registry. Furthermore, practical elements like having a home available or where your family lives are taken into account. - Your seat of fortune is located in Belgium.
This is the case when you manage your estate and finances from Belgium.
Both criteria take a subjective approach and leave a lot of room for interpretation depending on your particular situation.
Belgian Personal Income Tax
Belgium levies taxes on your worldwide income.
So, also if you have income from abroad, you need to include this in your Belgium tax return.
However, depending on the situation, you might be able to claim tax relief for it based on the provisions of a double tax treaty.
As a Belgian tax resident, you’ll have to pay personal income tax at progressive rates:
- <11.180 EUR: 0%
- 11.180-16.720 EUR: 25%
- 16.720-29.510 EUR: 40%
- 29.510-51.070 EUR: 45%
- <51.070 EUR: 50%
These are the general rates that apply for all income unless specified otherwise. They are also updated annually so you can find the most recent numbers on the website of the Ministry of Finance.
For dividend and interest income, there is separate rate of 30%. Yet, in some cases a lower rate can apply.
Belgium didn’t have a general capital gains for a long time. Nevertheless, the new government plans to introduce a general capital gains tax for financial assets in 2026. The tax rate would amount to 10%, notwithstanding some exemptions and special regimes.
The capital gains tax would also apply when you move out of Belgium but sell any financial assets within 2 years after leaving.
The aforementioned new capital gains tax will also apply to cryptocurrencies.
Nevertheless, in case your investment qualifies as speculative you could even end up paying 33% in tax. For professional traders, the progressive tax rates apply.
Social Contributions in Belgium
Social contributions differ for employees and self-employed individuals.
In case of an employee, both the employer and the employee will have to pay part of the social contributions:
- Employer: 25,57-32,88% (depending on amount of employees and type of work)
- Employee: 13,07%
The employer will automatically deduct the contributions from your gross salary.
Self-employed individuals are responsible themselves to pay all the social contributions calculated on their net income after deductions.
The following rates apply:
- <75.025 EUR: 20,5%
- 75.025-110.563 EUR: 14,16%
- >110.563 EUR: 0%
- Minimum contribution of 297 EUR per month (payable on a quarterly basis)
Company directors fall under the provisions for self-employed individuals.
Belgian Corporate Income Tax
Companies in Belgium pay a standard rate of 25% in corporate tax.
However, small and medium companies can benefit of a reduced rate of 20% on the first 100.000 EUR in profit if they meet certain requirements.
Options to Reduce Taxes in Belgium
As you noticed by now, taxes and social contributions quickly add up in case of Belgium tax residency. It’s not unusual to pay more than 50% in taxes and contributions combined.
So, let’s look at some options to potentially lower your tax burden.
Expat Tax Regime
If you move to Belgium because you are hired from abroad for a specific job you might be able to benefit from the expat tax regime.
Under the expat tax regime, you can receive up to 30% of your income as a tax free allowance (up to a maximum of 90.000 EUR).
In order to qualify, you’ll have to meet some conditions:
- Minimum annual salary of 75.000 EUR (exemptions for researchers)
- Not have been a Belgian tax resident in the past five years
- Last place of residency more than 150km from the Belgian border
Your employer needs to apply for the expat regime within 3 months after you start your work and the regime is valid for five years. After these five years you can extend for another three more years.
Apart from the allowance, you will remain subject to to the standard tax rules and social contributions.
This is a change from the old expat regime where there were some additional benefits.
Company Setup
A common way to reduce taxes for self-employed individuals is to open their own company.
By doing this, they limit the progressive taxes and social contributions they pay as long as they take out a low salary from their company.
The company can distribute their profit after tax as a dividend distribution which is subject to a lower and fixed income tax rate.
In case of small companies, a reduced dividend tax rate of 18% (15% till 1 April 2026) can apply if you meet certain conditions.
This is a common practice for self-employed individuals or people with a management function.
How to End Tax Residency in Belgium
If you want to end your tax residency in Belgium, you’ll need to cut down on your connections in Belgium.
This includes the following:
- Don’t own real estate unless it’s rented out or don’t rent a place for yourself
- Make sure your partner and dependents move with you
- Get rid of any vehicle registration in Belgium
- Close down your business in Belgium
- Limit your bank and investments accounts in Belgium
- Don’t spend too much time in Belgium
At the same time you’ll have to inform your municipality that you’re moving out.
Upon deregistration they’ll hand you a document called Model 8 confirming your deregistration. You’ll need this document if you want to register with the Belgian consulate or embassy abroad if you move to another country.
Furthermore, you’ll also have to file your final Belgian tax return.
This tax returns covers the period from the 1st of January till your date of deregistration. Income made after your deregistration does in principle fall outside the scope of Belgian taxes.
How is Belgium for Digital Nomads?
Belgium offers a stable lifestyle for digital nomads. It has good public healthcare, decent infrastructure and good internet speeds.
However, just like in most Western countries the cost of living has been going up in the past few years making it less affordable. It also doesn’t have a digital nomad visa, making access for non-EU/EEA citizens harder.
Furthermore, if you are looking for a place with a sunny climate, you might want to look somewhere else.
Finally, it’s no secret that Belgium has one of the highest taxes in the world so the convenient lifestyle comes at a significant cost.
Let Me Help You With Your Tax Setup
Are you planning to move to Belgium and you need assistance in order to minimize the tax consequences?
Or, maybe you had in enough of giving all your money to the Belgian government and you are looking for a way out?
In all these cases, you can reach out and I’m happy to assist!