How to navigate the world of Belgian taxation as an expat!

Belgium has many pull factors that attract expats who are seeking new personal and professional opportunities. Employment opportunities, culture, and high income rates all play a role in people choosing Belgium to relocate.

When you begin work in Belgium, you must familiarise yourself with the basics of Belgian taxation. 

After all, having a strong understanding of your tax responsibilities and entitlements can be the difference between owing tax and receiving a tax refund during filing season!

With that in mind, let’s delve into the world of Belgian expatriate taxation and look at ways you can reduce your tax bill.

What is a tax expat in Belgium?

A tax expat in Belgium refers to an individual residing in Belgium but not considered a permanent resident for tax purposes due to their non-permanent status. 

Belgium's tax for expats may be different to other tax residents, depending on some factors.

Are tax expats considered non-resident or resident for tax in Belgium?

Whether you will be considered a resident or non-resident depends mostly on whether you have registered in the National Register of Belgium. 

Managers, seconded employees or scientists and researchers recruited directly from abroad are treated as residents if they fulfil a few more additional requirements.

Types of taxable income in Belgium

The Belgian tax authorities will typically consider various forms of income as taxable, including:

• Employment Income: Salaries, bonuses, allowances, and benefits in kind

• Investment Income: Dividends, interest, and capital gains

• Pension Income: Both state and private pension incomes

• Rental Income: Income generated from renting out properties

• Self-Employment Income: Profits earned from self-employment or freelance work

Knowing the type of income you are earning will help you when tax-filing season rolls around, as it will help you to determine the correct document you need to file.

How much will I be taxed in Belgium as an expat?

Belgium employs a progressive taxation system with varying tax brackets corresponding to different income levels. 

These brackets determine the applicable tax rate for individuals. 

The following rates are what you can expect to pay in Belgium: 

The average Belgian tax refund is €2,300!

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Tax residency and municipal taxes in Belgium

Tax residency in Belgium is determined by various factors, including the individual duration and purpose of stay.

Residents are subject to federal and regional taxes, with additional considerations for municipal taxes based on the commune of residence. 

Municipal taxes can vary among different municipalities and impact an expatriate’s overall tax liabilities.

There are 581 municipalities in Belgium, with 300 in Flanders, 262 in Wallonia and 19 in Brussels.

Residents and non-residents of Belgium are subject to these local taxes, which can vary from 0% to 9% of the tax due. For non-residents, a rate of 7% is due on all taxes. 

If you have foreign-source income, you may also be subjected to communal taxes.

How can I reduce my tax in Belgium?

Expatriates in Belgium can explore numerous ways in which they can optimise their tax obligations.

These include:

• Deductions and Allowances: taxpayers can claim a number of deductions such as  professional expenses, housing allowances, and contributions to pension schemes in order to lower their tax bill.

• Utilising Tax Treaties: As an expatriate, you can benefit from tax treaties between Belgium and your home countries to mitigate double taxation.

When you file your taxes, you will receive your tax refund if you are due one.

Students living and working in Belgium

Quite often, students who are living in Belgium balance their studies with part-time work.

For example, if you are a student and are working in Belgium, you could be able to claim tax back if:

• Your annual income is under the tax-free allowance

• Your Belgian income is more than 75% of your annual worldwide income

• You are registered as a full-time student outside of Belgium

• You worked in Belgium for less than a year

Belgian tax refunds for couples

Are you married or in a legally registered partnership in Belgium? You may be able to file a joint tax return, which in turn can help reduce your taxes!

If you have children and they are living with you, you can claim allowances depending on the number you have.

You may be due tax back if:

• Your children are under the age of 18

• Your partner doesn't have a high income or any at all

Tax regime for expats in Belgium

Belgium offers specific tax rules for expatriates, such as the special tax status for foreign executives, researchers, and specialised employees. 

These regimes often provide favourable tax treatment, offering reduced tax rates or exemptions for specific income categories.

It’s worth checking if your employment falls under any of these categories when you are starting work.

Filing expat taxes in Belgium and deadlines

Filing your expatriate taxes in Belgium will require a basic understanding of the process and tax deadlines. 

If you have tax-filing obligations as an expatriate, you are typically required to file an annual tax return by 30 June, with the possibility of extensions in certain cases, such as if you use a tax agent like Taxback. 

When you file with Taxback, you’ll not only maximise your tax refund, but you will be fully tax compliant!

Who can claim a Belgian tax refund?

There is a good chance you are due a Belgian tax refund if:

• You worked in Belgium for part of the year

• Your annual income doesn't exceed the tax-free allowance.

• Your overall income from Belgium is more than 75% of your annual income worldwide.

• You are married

• You have children

Your employer will issue you with a Loonfiche 281.10/ Fiche de Rémunération 281.10 at the end of the tax year. 

If you want to claim a Belgian refund, you will need this official statement of your earnings.

What is the average tax refund in Belgium for an expat?

In Belgium, the average Belgian tax refund for an expat with Taxback is €2,300. 

Your personal circumstances will always play a large part in how much you are due back.

Factors that can impact the amount of tax you get back include, but are not limited to:

• How much you earned in Belgium

• If you earned other money outside of Belgium

• How long have you worked for

• If you have a spouse and/or children

Apply with Taxback today to find out how much you’re owed!

The average Belgian tax refund is €2,300!

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Can Taxback help me get a Belgian refund?

You can apply for your Belgian tax refund directly through the Belgian tax authorities. 

However, this doesn’t always suit expats who live busy lives and don’t want the extra stress of managing time-consuming paperwork.

That’s why you should choose Taxback!

When you apply with us, you will receive your maximum legal refund!

Check out our Belgium tax calculator to find out how much you're owed!

That’s because we’ll ensure you claim all of the tax deductions you're entitled to in Belgium.

That’s right - we can claim your tax back on your behalf! 

What’s more, we have a free no-obligations assessment to determine an estimate of how much tax you are owed. 

Register here today!