Key tax factors for efficient cross-border business and investment involving Belgium. The communal estate system is the main marriage contract in Belgium, and if you were married in Belgium without any stipulations, it is the default law. “Gifting is always better than transfer by death as it generally involves less tax.”. : Hi, I was advised if i were to marry my fiancée who is Belgique (me english) and both living in Belgium were to marry before end of year we'd be elgible for a tax return? Only married couples and registered partners can file one tax return even though they are still assessed individually. In some cases, communal taxes may also be levied on exempted foreign-source income. This site uses functional cookies and external scripts to improve your experience. Share with your friends. The following years. Tax on immovable property is levied on the cadastral value of the property at rates ranging from 1.25% to 2.5% depending on the … If you live in the UK and you receive a pension from the Service Fédéral des Pensions, you may have received a letter to say from 1 January 2021 the rules concerning social and tax deductions to be deducted from Belgium pensions will change for people living in the United Kingdom. Despite the fact that Belgium is one of the countries with the highest taxation in the world, the small West European country continues increasing the tax burden on its citizens. Select 'Self … In Belgium married couples and registered partners file jointly but they are taxed separately on the same tax bill. The heirs may make the declaration themselves but, as it is often complex, they can ask a specialist such as a notary to help. The gift tax rates for real estate in the regions are much higher. Tax on immovable property is levied on the cadastral value of the property at rates ranging from 1.25% to 2.5% depending on the … Latest articles. Expatica uses technology such as cookies and scripts to personalize content and ads, provide social media features, and analyze our traffic. As the Belgian tax system allows for certain marriage tax benefits and married tax credit, foreign residents in Belgium may benefit by transferring their marriage licence to Belgium. The remaining 50% will be subject to a continued life interest for the surviving spouse or legal partner. Bulgaria is particularly attractive for entrepreneurs as the Balkan country has flat personal and corporate tax rates of just 10%. Portugal, your Golden Gate to EU-citizenship for non-EU/EEA/Swiss citizens. The tax assessment is, in principle, issued before 30 June two years following the income year. Data fields to … Box VIIis for the income of your investments, i.e. For the years following your marriage, there are three tax assessment … Click below to consent to the use of this technology on our website – and don’t worry, we respect your privacy. This site uses functional cookies and external scripts to improve your experience. According to the OECD, an average married worker with two children pays 37,3% of its income to the government in the form of tax, whereas the OECD average is 26,6%. Essentially, they would have to pay 3% tax for the first €50,000, 9% tax on the next €250,000, and 27% on the rest. Couples married abroad will likely be subject to a foreign marital law. This means that an average married worker with two children in Belgium had a take-home pay, after tax and family benefits, of 80.8% of their gross wage compared to 85.4% for the OECD average. If you live in Belgium for less than 6 months of the tax year, you’re likely … Belgian law allows for a unique situation where couples – including foreigners – can claim certain marriage tax benefits by entering into a Belgian marriage contract. The law of inheritance tax in Belgium, however, will always apply to all expats residing in Belgium. In other words, in Belgium … According to the European Commission, around 450,000 cross-border successions take place in the EU yearly; the new law aims to simplify this complicated and costly process. The rules! Do you want a tax friendly estate planning? Have a cookie on married couples with two children. For lower taxes, they might consider gifting an asset instead. This ranks Belgium number 7 in the list. Iven De Hoon is trained as a lawyer (Antwerp, Belgium), and is also master in tax and accounting at the acclaimed Vlerick Institute (Ghent, Belgium). You don't report your wealth. This means you have the right to continue living in your shared home. Insights Industries Services Client ... Belgium has power to tax (according to tax treaty), or (2) fee is not taxed in country of residence (if there is no tax treaty). November 4, 2020 10 ways to live sustainably in Belgium. The average rate being 7%. 6. Belgium for income tax purposes due to the application of the special tax regime applicable to certain foreign executives (see below). For decades the United States has permitted married couples to opt for a joint tax return in which their combined income is subject to a separate and distinct rate schedule. They will construct a new contract of marriage and will end the previous one once both partners sign. Foreigners living in Belgium are generally liable to pay Belgian inheritance tax on their worldwide assets in the country. When a person dies in Belgium, all heirs must file an inheritance tax return (aangifte van nalatenschap/déclaration de succession) which gives an account of all details to do with the succession. In Belgium, unmarried couples can legalize their partnership by having a registered partnership (wettelijk samenwonend/cohabitation légale). Your choices will not impact your visit. If that is the case, you don't have to declare … Tax Free goods: Refunds are paid on goods that are exported in the traveller’s personal luggage. Belgium got a silver medal for high taxation in the EU. For residents of Belgium, communal taxes are levied at rates varying from 0% to 9% of the income tax due. 6. They may want to consider changing their relationship status in order to benefit from laws regarding marriage in Belgium. Once they do this, they would then need to consider if the communal or separate estate system is best for them. If applicable, the loss of the afore-mentioned tax credits (marital quotient and tax free allowances) for a married foreign executive with Belgian expatriate tax status with an abode in Belgium, a non-working spouse and two dependent children, is estimated to be equal to € 7,661. If you passed it onto your partner via a will, however, they would have to pay inheritance tax. 2 1000 Sofia, Bulgaria Phone: 00359 888 460 610, Quellinstraat 49, B-2000 Antwerp. There are a number of taxes related to residential properties in Belgium, including VAT, cadastral income, and local taxes related to inhabiting the home, that will depend on the region, province or district of the property. External scripts to improve your experience relationships under government law move to another.. Advantage is that the spouses can always cancel the gift fiscal residence of married couples with children. Will have certain obligations but also entitlements to certain foreign executives ( see below ) varies! 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