Belgian Tax Residency and its implications

A Belgian tax resident is subject to personal income tax in Belgium on their worldwide income and should file a Belgian resident income tax return to report this worldwide income.

This includes all categories of income earned globally, such as:

• Real estate income (whether located in Belgium or abroad),
• Professional income,
• Movable income (e.g., dividends, interest),
• And any other taxable income sources.

Where income is also taxable in another jurisdiction under the terms of a double tax treaty concluded between Belgium and that jurisdiction, Belgium generally applies the exemption with progression method. This means the foreign income is exempt from Belgian tax but may still impact the tax rate applied to the taxpayer's other (Belgian-taxable) income.

On exempt income from certain countries (the Netherlands, France, Germany, UK, …), Belgian communal tax will apply.

Reporting of foreign movable Income (e.g. dividends)

For Belgian resident taxpayers, the treatment of dividend income depends on the location of the account through which the income is received:

• Belgian bank account: The Belgian financial institution will automatically withhold the 30% withholding tax on movable income. The net amount is credited to the individual's account.
• Foreign bank account: Dividends received abroad must be declared in the Belgian resident tax return. The reportable amount is the gross dividend, net of any foreign withholding taxes.

An exemption of up to EUR 859 per year (income year 2025) applies for certain qualifying dividends. Dividends within this threshold do not need to be reported.

Reporting of Foreign Bank Accounts

Belgian tax residents are legally required to report any foreign bank and securities accounts to:

1. The National Bank of Belgium (NBB) via the Central Point of Contact (CPC); and
2. The Belgian resident tax return by ticking box 1075.

Even if the account has already been reported to the NBB, the corresponding box in the tax return must still be ticked.

Further information on how to report foreign accounts to the NBB is available (in Dutch, French, or German) at:
🔗 https://www.nbb.be/nl/kredietcentrales/centraal-aanspreekpunt/buitenlandse-rekeningen/praktische-modaliteiten-voor-de

Reporting of Foreign Real Estate

Belgian tax residents must notify the Belgian tax authorities of any foreign real estate they own within 30 days of becoming a resident.

Upon notification, the tax administration will assign a cadastral income to the foreign property, which must be included in the individual's annual personal income tax return.

Details and the relevant notification form are available at:
🔗 https://financien.belgium.be/nl/particulieren/woning/kadaster/kadastraal-inkomen/kadastraal-inkomen-van-het-buitenland-gelegen

Stock Exchange Tax

Belgian residents are subject to the stock exchange tax on the purchase and sale of financial instruments (typically 0,35%). The treatment depends on the type of intermediary:

• Belgian financial institutions: The tax is withheld and remitted automatically.
• Foreign financial institutions: The individual must file a separate return (distinct from the personal income tax return) and pay the tax by the end of the second month following the month of the transaction.

Penalties of EUR 50 per week apply in the case of late filing or payment.

More information and the required forms are available at:
🔗 Tax on stock-exchange transactions | FPS Finances

Annual Tax on Securities Accounts

The annual tax on securities accounts is levied at a rate of 0,15% on accounts with an average value exceeding EUR 1,000,000 over a reference period.

• The reference period runs from October 1 to September 30 of the following year.
• The average value is calculated based on account balances on December 31, March 31, June 30, and September 30.
• The tax is assessed per account, regardless of the number of account holders.

For securities accounts held with foreign banks:

• The foreign bank may appoint a Belgian representative to handle tax formalities.
• If not, the account holder(s) are responsible for filing the declaration and paying the tax.

The tax return is submitted via MyMinfin, and the payment is due by August 31 of the year following the reference period. In cases of joint ownership, any one of the holders may file on behalf of all.