Analysis of your Belgian tax situation – resident or non resident
The first step in analyzing your Belgian tax situation is to determine whether your are considered as a Belgian tax resident or a Belgian non resident.
Article 2 of the Belgian Income Tax Code defines a "resident" as:
- Someone who has established his "domicile" in Belgium;
- If there is no domicile in Belgium, someone who has the "seat of his assets" in Belgium.
Understanding
"Domicile":
The term "domicile" refers to the place where a person habitually and
continuously lives, demonstrating a stable and consistent presence. It typically
includes:
- The location of the individual's permanent residence;
- The place where his family home is situated;
- The center of his personal life, encompassing social, cultural, political, and occupational ties, and to which the person intends to return, even after extended absences.
Definition
of "Seat of Assets":
The "seat of assets" refers to the location from which an individual oversees
and manages his property. It reflects a degree of permanence and is typically
where the individual exercises control or administration over his financial or
business interests. Importantly, this may differ from the actual location of
the assets and instead focuses on where the strategic management takes place.
2 presumptions of Belgian Tax Residency:
As per the Belgian income tax code, an individual is presumed to be a tax resident of Belgium if he is listed in the national register. However, this is a refutable presumption, i.e. the individual can present evidence showing that he maintains or has transferred his tax residence to another jurisdiction.
Additionally, the article establishes an absolute rule that, in the case of
married couples, residence is attributed to the location where the family
household is established. The presumption is irrefutable.
Moving to Belgium
If an individual is moving to Belgium during an income year (and his family, if applicable, joins him), he will be considered a Belgian tax resident as from the moment he has established his domicile in Belgium.
During the period from January 1 until the date he becomes a tax resident, he will be considered as a non resident for Belgian tax purposes.
Leaving Belgium
If an individual is leaving Belgium during an income year (and his family, if applicable, joins him), he will be considered a Belgian tax resident until the date of deregistration from the Belgian registry of population (or from the date he effectively left Belgium if sufficient proof can be provided showing that he had the intention to permanently leave Belgium as from that date.
A Belgian special tax return should be filed within 3 months following the deregistration from the registry of population to report the individual's worldwide income until the date of deregistration. A special tax form should be requested to the Belgian tax administration.