What is the withholding tax in Belgium?

30%
A uniform WHT rate of 30% is applicable on dividends, interest, and royalties. There are some exceptions. Some WHT reductions/exemptions are foreseen under Belgian domestic tax law.

What are the tax rates in Belgium?

For residents of Belgium, communal taxes are levied at rates varying from 0% to 9% of the income tax due. 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.

Who is a non-resident in Belgium?

Non-resident taxpayers who come to Belgium without establishing tax residency here, are only taxable here on Belgian domestic income. Employees are only taxable here if the cost of their salary is paid (or borne) by a Belgian company or if they physically spend more than 183 days in the country.

Why are Belgian taxes so high?

The reason is very simple: because the government spend a huge amount of money on useless things and there’s also a lot of corruption and fraud. 1. They make buildings worth millions in small towns (Google for example “Gare Mons” or “Gare Liege”).

Who is considered resident in Belgium?

A resident of Belgium generally refers to an individual who enters Belgium, as a single person or with family, with the intention of remaining for more than 18 to 24 months (depending on circumstances and other factors). Under certain circumstances a person may qualify for expatriate tax concessions.

Who are residents in Belgium?

If you, as a EU citizen or citizen of Switzerland, Norway, Iceland or Liechtenstein, want to stay more than three months in Belgium, you are classified as a resident and will have to go through a range of formalities to obtain a residence permit or “long-term stay”.

Is it cheaper to live in Belgium or the Netherlands?

Prices in Belgium vs the Netherlands – Cost of Living Comparison. The average cost of living in Belgium ($1436) is 14% less expensive than in the Netherlands ($1675). The average after-tax salary is enough to cover living expenses for 1.5 months in Belgium compared to 1.6 months in the Netherlands.

What is the current withholding tax rate in Belgium?

Reduction of Withholding Tax in Belgium. The current withholding tax rate applicable on dividends, interests and royalties distributed by a Belgian resident company to a nonresident is 27%, unless it is reduced under one of Belgium’s tax treaties.

Do you have to file a Belgian tax return as a non resident?

See the explanatory booklet (PDF, 1.24 MB) (This hyperlink opens a new window) (pages 1 and 2) for more information on the income concerned. You must therefore file a a non-resident tax return in Belgium. You must mention all income you’ve collected in Belgium in 2019.

How does Belgian expatriate special income tax work?

When benefiting from the Belgian expatriate special income tax regime, the taxable income may be reduced to the extent that the expatriate spends part of their business time outside Belgium. The tax authorities have provided precise rules for determining days worked outside of Belgium qualifying for exemption.

Do you have to withhold taxes from a nonresident alien?

If you are the employer of a nonresident alien, you generally must withhold taxes at graduated rates. Effectively connected income by partnerships.