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Taxation in Belgium information


Taxation in Belgium consists of taxes that are collected on both state and local level. The most important taxes are collected on federal level, these taxes include an income tax, social security, corporate taxes and value added tax. At the local level, property taxes as well as communal taxes are collected. Tax revenue stood at 48% of GDP in 2012.[1]

The amount of taxes a person in Belgium has to pay depends on whether you are or you are not a resident of the country. For a resident (a person whose work or family home is in Belgium) it is clear. But in the case of non-resident, there are two scenarios. If you are non-resident who lives in Belgium for at least six months of the year (183 days) and you are registered with your local commune, you are classified as resident. 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).[2]

The tax topics and laws are managed by government through the Ministry of Finance. The power to levy taxes has only the parliament. After the law is signed by the king, it is published in the official gazette.

The effective taxation rate in Belgium is commonly cited as among the highest in the world; see list of countries by tax rates.

  1. ^ "EU - Tax Revenue Statistics".
  2. ^ "Belgian tax guide: Understanding taxes in Belgium for foreigners". Expat Guide to Belgium | Expatica. Retrieved 2019-04-28.

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