There are many different kinds of taxes in Belgium. In this article we explain the most important ones.
Taxes in Belgium are levied at two levels – the more important taxes (such as income and corporate tax or VAT) are collected by the government, whereas others are levied locally (property taxes). In comparison to other EU countries, taxes in Belgium are higher than the average.
The general tax rate for business tax is 25%. Small and medium businesses are taxed at 20% on the first €100,000.
In Belgium, individual income taxes are progressive meaning higher tax rates are applied to higher incomes. Tax rate for persons with very low incomes is only 25%, whereas the wealthiest members of society are taxed at 50%. Your yearly taxable income can be lowered by applying tax allowance. Some of the most common tax allowances in Belgium are the personal allowance or marriage allowance. To correctly calculate your tax rate it is crucial to know your tax residency status. You can read our article about tax residency.
|Yearly taxable income||Tax rate|
|€0–€13 540||25 %|
|€13 541–€23 900||40 %|
|€23 901–€41 360||45 %|
|Everything above €41 360||50 %|
Everyone with a source of income in Belgium has to file a tax return. We can file your tax return for you.
Your employer will deduct 24,77% of your salary and send it to the social security fund. On top of that, you as an employee are obligated to send another 13,07% of your gross income to the fund. These payments are then divided between health insurance, unemployment insurance and pension insurance.
If you own property in Belgium, you are obligated to pay property tax every year. The tax rate is 1,25 - 2,5% of the property's value. If you decide to rent it out, you'll have to tax the income generated by you renting it. The tax rate is between 25 and 30.
VAT is paid on sold services and products. The general rate is 21% but there are some exclusions – some daily or weekly publications and recycled goods are taxed at 0%, the most basic goods (such as water and food) are taxed at 6%, social housing and restaurant services are taxed at 12%. Small businesses with revenue lower than €25 000 are not obligated to pay VAT.
If you are a parent of children who are either underage or still studying and living with you, you are probably entitled to child benefits. To learn more read our article about Belgian child benefits.