Taxes in Belgium
Belgium has one of Europe's highest tax burdens, but the enhanced expat tax regime (ISTR) and various deductions can significantly reduce the effective rate for qualifying international workers.
Income Tax Rates (2026)
| Taxable Income | Rate |
|---|---|
| Up to €15,820 | 25% |
| €15,820 - €27,920 | 40% |
| €27,920 - €49,840 | 45% |
| Above €49,840 | 50% |
Tax-free amount: €10,910 (2026), increased for dependent children and spouse.
Municipal surcharge: 0-9% additional tax on your federal tax bill, depending on commune. Brussels communes average 6-7%. Non-residents pay a flat 7%.
The Expat Tax Regime (ISTR)
Belgium's key tax advantage for international workers. Enhanced from January 2025:
Current rules (from 1 January 2025):
- 35% of gross salary is tax-free (up from 30%)
- No cap on the exempt amount (previous €90,000 cap removed)
- Minimum salary threshold: €70,000/year (reduced from €75,000)
- Duration: 5 years + 3-year phase-out
Eligibility:
- Recruited from abroad (lived 150km+ from Belgian border)
- Minimum gross remuneration of €70,000/year
- Specific expertise not readily available in Belgium, OR researcher status
- Apply within 3 months of starting Belgian employment
Impact example (€120,000 salary):
- Without ISTR: ~€55,000+ in tax + social security
- With ISTR: ~€38,000 in tax + social security (35% = €42,000 exempt)
- Annual savings: ~€17,000+
Note: Social security still calculated on old 30%/€90,000 cap basis — dual calculation required.
Social Security Contributions
| Category | Rate |
|---|---|
| Employee | 13.07% of gross salary (no ceiling) |
| Employer | ~25% of gross salary |
| Self-employed (year 1) | 20.5% of net income |
| Self-employed (standard) | 20.5% up to €73,448, 14.16% on €73,448-€108,238 |
Other Taxes
Withholding tax (précompte professionnel): Employer withholds income tax from salary monthly.
Property tax (précompte immobilier): Annual tax on property ownership, varies by region and municipality.
VAT (BTW/TVA):
| Rate | Items |
|---|---|
| 21% | Standard rate |
| 12% | Restaurants, social housing |
| 6% | Food, books, medicine, water |
| 0% | Newspapers, recycled goods |
Tax Filing
Key dates:
- Tax year: January 1 - December 31
- Paper filing deadline: June 30 (following year)
- Online filing (Tax-on-web): July 15
- Complex returns (self-employed, foreign income): October
- Use eID or Itsme for Tax-on-web access
Pre-filled returns: The Belgian tax administration (SPF Finances) pre-fills much of the return. Review, adjust, and submit.
Common Deductions
- Mortgage interest and capital repayment (for primary residence, varies by region)
- Childcare costs (up to 45% deductible)
- Charitable donations
- Pension savings (up to €1,020 or €1,310 depending on scheme)
- Service vouchers (titres-services) for household help
- Meal vouchers (employer-provided, tax-free up to €8/day)
Double Taxation Treaties
Belgium has treaties with 90+ countries. Key considerations:
- Foreign pension income treatment
- Investment income taxation
- Coordination with home country obligations
13th Month & Holiday Pay
Belgian employees receive:
- 13th month (end-year bonus): Typically 1 month's gross salary
- Holiday pay (pécule de vacances): Extra month in May/June
- Both are taxed (holiday pay at special rate ~35%)
Pro Tips
- •Apply for the ISTR expat regime within 3 months of starting work
- •The 35% tax-free allowance with no cap can save tens of thousands annually
- •Get your eID or Itsme set up for Tax-on-web access
- •Pension savings give a tax reduction — max €1,310/year
- •Service vouchers (titres-services) are a tax-efficient way to get household help
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