Taxes and finances in Belgium: A guide for emigrants | KOCH Moving Logistics

Moving to Belgium is an exciting adventure that offers many new opportunities and experiences. One essential aspect that emigrants must consider is taxes and finances in Belgium. This article provides comprehensive information about the Belgian tax system, the best banks and tips for international money transfers for anyone wishing to emigrate to Belgium.

The Belgian tax system is complex and highly federalised. In addition to the federal income tax, the three regions (Flanders, Wallonia and Brussels‑Capital) levy their own surcharges and taxes. Income tax reaches top rates of 50%, significantly higher than Germany (45%) and far above Switzerland. At the same time, Belgium offers interesting special provisions such as the expatriate tax regime, generous allowances for capital income, and no wealth tax in the classical sense..

Belgium uses a progressive tax system – the higher your income, the higher the tax rate. Your worldwide income is taxed once you are tax‑resident in Belgium (domicile or habitual residence).

The first portion of your taxable income is tax‑exempt. The basic tax‑free allowance for the 2025 tax year (2026 assessment year) is €10,910. The tax‑free allowance may be increased due to your personal situation, for example if you have dependent children. If your income is lower than the tax‑free allowance, you do not pay any taxes.

 

A special feature of the Belgian tax system is the municipal tax (taxe communale). It is levied as a percentage surcharge on the income tax calculated by the state. The actual tax burden depends heavily on your place of residence, as municipal tax rates vary among the 581 municipalities. For example, in Brussels‑Capital the regional rate is 32.591%. Moving to another municipality can therefore affect your tax burden.

In Belgium, social security contributions (for pensions, unemployment, health and family insurance) are deducted directly from gross salary. The employer also pays a significant contribution. For employees, the employee contribution rate is about 13.07% of gross salary.

Value Added Tax in Belgium is generally 21 %. A reduced rate of 6 % 6% applies to food, books, medicines, certain cultural services and some other everyday goods. Since 1 January 2026, an additional reduced rate of 12% 12 % has been introduced for certain services such as the provision of furnished accommodation and campsites, as well as for tickets for museums, cultural events, sports events and amusement parks.

Belgium does not levy a classical wealth tax on total assets. However, there are individual asset‑related taxes. From 1 January 2026, a new capital gains tax on financial assets was introduced. Realised capital gains on financial assets are subject to a standard tax rate of 10%. There is also a so‑called account tax (premium tax) on the total amount of premiums paid into Belgian bank accounts.

If you work in Belgium as a foreign employee, there are two important tax aspects to consider: the professional withholding tax (précompte professionnel) and the special expat tax regime.

The so‑called "professional withholding tax" is a withholding tax that your employer deducts directly from your gross salary and pays to the state. It is an advance payment on your annual income tax, not the final tax liability. The amount withheld depends on your wages, family situation and other factors. At the end of the tax year, the annual tax return reconciles the difference between the withholding tax already deducted and your actual tax liability. In many cases, you will receive a refund if too much was withheld.

One of the most attractive tax provisions for foreign skilled professionals in Belgium is the so‑called expatriate tax regime (also known as the impatriate status). This tax programme was created to attract international talent. It allows the deduction of a portion of gross salary from the tax base for employees who lived outside Belgium before their employment. The status is generally granted for a maximum of 6 years (previously 8 years), with a one‑time extension of a further 2 years under certain conditions. The status must be applied for by the employer..

Even if you already pay professional withholding tax, you are generally required to file an annual tax return (aangifte) . The tax return in Belgium is the central instrument for calculating your annual income tax. It is used to report all sources of income from the previous year to the FPS Finance and to determine the final tax liability.

The FPS Finance opens the online portal MyMinfin (Tax-on-Web) each year, usually in April (in 2026 on 28 April 2026). There you can fill out and submit your tax return online..

A double taxation agreement (DTA) exists between Germany and Belgium from 1967, amended several times. It prevents your income from being taxed in both countries and regulates the allocation of taxing rights. For employees, as a rule, employment income is taxed in the state of employment. So if you work in Belgium, Belgium has the right to tax your employment income, even if you live in Germany. Germany must exempt this income (subject to the progression proviso).

There are exceptions where Germany may tax: if you perform your activity in Germany, if the activity lasts more than 183 days in the calendar year in Germany, if the employment income is paid by or for an employer resident in Germany, or if the employment income is borne by a permanent establishment or fixed base that the employer has in Germany. For cross‑border commuters who live in Germany and work in Belgium, more complex rules apply: in principle, Belgium taxes the employment income, while Germany exempts it. Pensions from the statutory pension insurance are generally taxed in the state of residence, while pensions for former civil servants may often be taxed in the source state.

The double taxation agreement is currently being renegotiated. A new agreement is intended to replace the existing agreement from 1967 and adapt taxation to current circumstances – however, it had not yet been signed by the turn of the year 2025/2026.

Opening a bank account in Belgium is an essential step to establishing yourself in the Belgian economy. Belgium has an advanced banking system and is one of the leading banking and financial centres of the European Union.

The major Belgian banks generally also offer English‑language support, which is very helpful for expats. However, you are more likely to find German‑language service with specialised expat offerings or cross‑border service providers. To open an account in a branch, you generally need:

 

– a valid passport or identity card;

– Ihre national register number (obtained after registering with the municipality);

– proof of address in Belgium (e.g., rental contract, registration certificate from the municipality);

– proof of your employment or a certificate of residence.

 

NON-RESIDENT ACCOUNT: If you do not yet have a national register number, many banks can open a so‑called non‑resident account . This is, however, more bureaucratic and requires more documentation, but is usually possible. For daily payment transactions and salary payments, the current account (compte courant / zichtrekening) is the most important instrument.

International money transfers between Belgium and Germany are particularly simple and low‑cost due to the common currency (euro) and EU regulation:

 

– BANK TRANSFERS (SEPA): The standard for euro transfers within the SEPA area. Fees depend on your account model with your Belgian bank. Many Belgian banks have free or very cheap online current accounts for salary deposits.

 

– SPECIALISED TRANSFER SERVICES: Services such as Wise (formerly TransferWise) or Revolutare specialised in international, cross‑border money transfers with transparent exchange rates and low fees – particularly useful if you need to transfer money regularly into a currency outside the euro area.

 

– PAYPAL: Simple and fast for smaller amounts, but often with higher fees than bank transfers and specialised transfer services.

 

REPORTING OBLIGATION FOR FOREIGN ACCOUNTS: Belgian taxpayers must report their foreign accounts to the Belgian tax authorities (FPS Finance). This includes savings and current accounts, securities accounts and other accounts abroad. The report must be submitted annually via the MyMinfin portal . Non‑compliance with this reporting obligation can lead to fines. This also applies to German expats who emigrate to Belgium and still hold German accounts..

Belgium has a state‑organised pension system based largely on a pay‑as‑you‑go system. Pensions are financed by social security contributions paid by employees and employers. It is divided into three main components:

 

– Statutory pension (pension légale / wettelijke pensioen): The state pension is the core of old‑age provision. It is financed from contributions paid during working life. Unlike in Germany, there is no means‑tested basic security.

 

– Occupational pension (tweede pijler / deuxième pilier): Many employers in Belgium offer an occupational pension scheme. This is generally tied to a sectoral collective agreement, but may also be offered by the individual company.

 

– Private pension : In addition to: In addition to the state pension, you can make private provision, for example via pension savings accounts, life insurance or investment funds.

 

 

SPECIAL FEATURES OF THE BELGIAN PENSION SYSTEM:

 

– No basic security: Those who do not have enough contribution years for a full pension receive a minimum pension. Unlike in Germany, however, a very timely review of "likely insufficient means of subsistence" is carried out.

 

– Retirement age: The statutory retirement age for most employees is 65, with the possibility of earlier retirement under certain conditions (early pension).

 

– Pension guarantee: Belgium grants a pension guarantee for employees who have paid contributions for at least 40 years. This is a minimum amount that a pension must not fall below.

 

As a German emigrant, you should check whether your German pension entitlements are preserved and how they harmonise with the Belgian system. The double taxation agreement regulates the taxation of pensions from Germany.

 

Moving to Belgium requires careful planning and a good understanding of the tax and financial environment. Particularly for German emigrants, the complex but highly social Belgian system takes some getting used to. The high tax rates are offset by a well‑developed healthcare system, affordable education opportunities and a broad social safety net. Those who engage with the Belgian bureaucracy and the three‑tier tax system will find a high level of social security and a very good quality of life in Belgium.

We at KOCH Moving Logistics are by your side to make your dream of emigrating to Belgium as smooth as possible.