How Much Tax Do You Pay In Belgium?

Income tax in Belgium can range from 25 to 50 per cent (not including municipal tax), and you need to be sure you are placed in the correct tax brackets.
The average rate being 7%. For non-residents, a flat surcharge of 7% is due. In some cases, communal taxes may also be levied on exempted foreign-source income.

What taxes do businesses pay in Belgium?

In Belgium, there are many taxes connected with business such as corporate income tax (more specified in the Income Tax Code), payroll taxes on remuneration paid to employees and directors, VAT, transfer tax, insurance premium tax. Occasionally, certain regional or local taxes might appear, depending on the area where firm operates.

How are non-regulated accounts taxed in Belgium?

Non-regulated accounts are subject to tax from the first euro. Real estate income is subject to income tax (if you own the property as an individual) or corporate tax (if you own the property as a company). The Belgian tax year runs from 1 January to 31 December, and tax returns must be filed the following summer.

What is the income tax rate in Belgium for 2020?

Income tax in Belgium. Residents of Belgium pay personal income tax on their total earnings from all worldwide sources on a sliding scale. The current tax brackets for 2020’s tax return are the following: Belgian income tax bands. Belgian tax rate. Up to €13,340. 25%. €13,341–€23,720. 40%.

What is the deadline for filing taxes in Belgium?

Income tax deadlines in Belgium The Belgian tax year runs from 1 January to 31 December, and tax returns must be filed the following summer. This means that in the summer of 2021, you’ll need to file your tax return for 2020. All workers in Belgium must file an annual tax return, even if they have a salaried job with one employer.

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Does Belgium have high taxes?

Tax rates in Belgium are some of the highest in Europe. For example, the rate of personal income tax can reach 50% for the highest earners, in comparison to an average of 38% in the rest of Europe. If you are a foreigner working in Belgium, you are generally liable to pay Belgian taxes and file a tax return.

What is the tax rate in Belgium 2020?

The Sales Tax Rate in Belgium stands at 21 percent.

Is there a tax free allowance in Belgium?

Everyone who is subject to personal income tax is entitled to a ‘tax-free allowance’. This means that a portion of your taxable income is not taxed. The tax-free allowance is EUR 9 050 (for 2021 income). It may be higher depending on your personal situation (e.g. if you have any dependent children).

How can I save tax in Belgium?

Contributions to existing retirement plans can be maximized and become a tax saving strategy. Other options for effective tax planning include bringing forward the tax deductions into the current financial year, using the capital gains discount, setting up a company in Belgium (and use it as a separate legal entity).

Is Belgium cheap to live?

Though the cost of living in Belgium is definitely high, it is nowhere near as expensive as some other western European countries. This guide will help you navigate living costs from healthcare and food to housing and transportation.

What is the average salary in Belgium?

Average gross income: 3,758 euros per month. On average, an employee working full-time in 2019 earned 3,758 euros gross per month. This is what emerged from new results of Statbel, the Belgian statistical office, based on a survey on earnings among 118,164 employees of Belgian companies.

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What is the cost of living in Belgium?

Living costs in Belgium. Living costs in Belgium usually vary between 700 – 950 EUR/month. In big cities, you might need a larger budget, but this largely depends on accommodation type and your spending habits.

Is Belgium a tax haven?

Belgium is not a real tax haven. It is not for the Swiss, the Luxembourgers or the Scandinavians. It was once for the Dutch, and it could be for some well-to-do Brits and Italians. Conversely, in view of the large number of tax exiles, it seems to be so for the French.

Are taxes higher in Belgium or Netherlands?

As of 2021, the personal income tax rate in Belgium reached 52.9 percent, which was the highest in the Benelux region. The personal income tax rate for the Netherlands was 49.5 percent, and for Luxembourg it was 45.8 percent.

Is healthcare free in Belgium?

Health insurance is mandatory in Belgium. Patients are free to choose their doctors and places of treatment. Patients generally pay the fee upfront and get a partial refund of the charges through their Belgian health insurance fund (mutuelle / ziekenfonds).

How much tax do you pay as self employed in Belgium?

Taxation for freelancers in Belgium

This is paid on business turnover, with the current standard rate at 21%. If you earn less than €25,000 a year, you won’t have to pay or register for VAT unless you want to.

What country has the highest income tax rate?

Top 10 Countries with the Highest Personal Income Tax Rates – Trading Economics 2021:

  • Japan – 55.97%
  • Denmark – 55.90%
  • Austria – 55.00%
  • Sweden – 52.90%
  • Aruba – 52.00%
  • Belgium – 50.00% (tie)
  • Israel – 50.00% (tie)
  • Slovenia – 50.00% (tie)
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    Which European country has the lowest income tax?


    At a flat 10%, Bulgaria has the European Union’s lowest personal income tax rate.

    How do I get my tax refund in Belgium?

    Request the VAT Refund form from the vendor. You will require your passport for this. Before leaving the EU, go to the customs office to have your VAT Refund forms stamped. Remember to take the goods for which you wish to receive a VAT refund with you to the customs office.

    How much is the VAT in Belgium?

    VAT is collected in successive steps, i.e. every transaction of a production and distribution process. The normal rate is 21%. However, the lower rates of 0%, 6% and 12% are applied to certain categories of goods and services. More information on rates (fr).

    Why does Belgium have a high tax rate?

    Belgium puts its tax dollars to work by financing robust health care, education and social security programs, said Huyghe. Many students go to university without having to make any significant payments, he said.

    Is Belgium a poor or rich country?

    Being rich in a poor country also has costs.


    Rank Country GDP-PPP ($)
    19 Germany 63,271
    20 Sweden 62926
    21 Australia 61,941
    22 Belgium 61,587

    Which country pays highest tax?

    Countries With the Highest Income Tax for Single People

    1. Germany. Germany has a progressive tax, which means that higher-income individuals pay more taxes than lower-income individuals.
    2. Belgium. Belgium’s top progressive tax rate is 50%.
    3. Lithuania.
    4. Denmark.
    5. Slovenia.

    Which is the highest taxed country in the world?

    Top 10 Countries with the Highest Personal Income Tax Rates – Trading Economics 2021:

  • Japan – 55.97%
  • Denmark – 55.90%
  • Austria – 55.00%
  • Sweden – 52.90%
  • Aruba – 52.00%
  • Belgium – 50.00% (tie)
  • Israel – 50.00% (tie)
  • Slovenia – 50.00% (tie)
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