How To Save Tax In Belgium?

Income tax, VAT, and corporate tax in Belgium are subject to the same rules across the country. The national government generally collects tax revenues. Other taxes vary significantly depending on where you live in Belgium. For example, inheritance tax rates differ in Brussels, Flanders, and Wallonia.

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.

How much interest is tax-free on savings accounts in Belgium?

Currently in Belgium, interest on savings accounts is tax-free up to an amount of €990.00 per person per year (tax year 2021). If the account is in the joint name of a married or cohabitating couple, the exemption is doubled to €1,980 per year.

Where can I find information on personal income tax in Belgium?

For more information on personal income tax and income tax for the self-employed, look in the ‘Taxes’ section of the portal. Income from a Belgian source going to people who have neither settled in Belgium nor made it their centre of financial interest is subject to non-residents’ tax.

How do I pay less taxes in Belgium?

Tips for paying less tax

  1. File your professional expenses.
  2. File your travel expenses.
  3. Submit your periodic VAT return.
  4. Submit the tax certificate for your social security contributions.

Why Belgium tax is so high?

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.

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What is tax deductible in Belgium?

Employment expenses

Employment-related expenses are also deductible, provided they are substantiated; alternatively, standard deductions may be claimed. For employees, the standard expense deduction amounts to 30% of the gross earning, up to a ceiling of EUR 5,040.

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.

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.

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 tax on salary in Belgium?

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.

Which EU country pays the most tax?

Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) had the highest top statutory personal income tax rates among European OECD countries in 2021. Hungary (15 percent), Estonia (20 percent), and the Czech Republic (23 percent) had the lowest personal income top rates.

Which country in Europe has lowest income tax?

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

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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.

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.

How do I pay my minimum taxes?

  1. Contribute to a Retirement Account.
  2. Open a Health Savings Account.
  3. Check for Flexible Spending Accounts at Work.
  4. Use Your Side Hustle to Claim Business Deductions.
  5. Claim a Home Office Deduction.
  6. Rent Out Your Home for Business Meetings.
  7. Write Off Business Travel Expenses, Even While on Vacation.

What is expat status in Belgium?

Now, an expat’s tax residency status is determined by the general rules of the Belgian Income Tax Code. As such, an expat working and living in Belgium with their family is taxable on their worldwide income and not only on their Belgian-sourced income. Such an expat is considered a resident in Belgium for tax reasons.

How do I check my Belgium tax return?

How do I access my online tax return? Download the itsme® application (via the AppStore or Google Play). Activate your itsme® account using your identity card or bank card. Log in to MyMinfin using your itsme® code or your fingerprint and complete your tax return.

How do I pay my minimum taxes?

  1. Contribute to a Retirement Account.
  2. Open a Health Savings Account.
  3. Check for Flexible Spending Accounts at Work.
  4. Use Your Side Hustle to Claim Business Deductions.
  5. Claim a Home Office Deduction.
  6. Rent Out Your Home for Business Meetings.
  7. Write Off Business Travel Expenses, Even While on Vacation.
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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.

How do taxes work in Belgium?

It means you are taxed by Belgium income tax on your worldwide income. But if you are a non-resident who lives in Belgium for fewer than 6 months (183 days) during the year, you have to pay Belgium income tax only on income you earned in Belgium (including rents and capital gains).

How do I pay less tax self employed?

How To Reduce Tax Bills If I’m Self-Employed

  1. Incorporate your business.
  2. Offset all allowable expenses.
  3. Claim on capital allowances.
  4. Contribute to a pension.
  5. Set up an ISA.
  6. Use tax return software.

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.

How does the Belgian government deal with tax evasion?

The Belgian government is increasingly looking to crack down on tax evasion. Data released in 2019 showed that the authorities had authorised audits of 3,600 taxpayers’ bank accounts since 2011. In 2018, the government imposed sanctions of just over €1bn after investigating 1,600 cases of suspected tax evasion. Who pays income tax in Belgium?

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