Chesterfield (London) 
207 Old Marylebone Road
Tel: +44 (0) 203 771 3853
Fax: +44 (0) 203 771 3856

Belgium Income Tax

Before accepting a foreign contract, a contractor needs to consider carefully the taxation and other requirements of the country they are going to. At Chesterfield Management, our International Umbrella Services can help you deal with these requirements and discuss with you the options you may have.

Belgium has one of the highest personal taxation rates in the EU, which for employees can mean that they are subject to 57.3% tax including social contributions on any earnings of €35,060 per annum. Therefore, there can be a lot of taxation advantages to being a contractor over a salary employee.

Should you work in Belgium for 183 days you may be considered resident in Belgium for tax purposes from the date of your arrival. For some contractors, for example, those leaving the UK if you choose to work through your UK limited company, then you can become liable for corporate taxes in Belgium which are higher than in the UK. .

Social security legislation called LIOMSA has been in place since 1st April 2007 and requires contractors working in Belgium are registered. At Chesterfield Management, we are experienced at dealing with agencies and the paperwork they require.

Belgium Income Tax Rates

Taxable Income Band € National Income Tax Rates
  • 1 - 8,350* 25%
  • 8,351 – 11,890 30%
  • 11,891 – 19,810 40%
  • 19,811 – 36,300 45%
  • 36,301 + 50%

The income tax rates are progressive and the table above is based on the rates that applied for 2011 declared on the 2012 Tax returns. Tax allowances are available to all tax payers and depend on your personal circumstances and deductions are allowed for certain types of expenditure. The rates above do not include social security or communal taxes.
In Belgium municipal taxes are payable and these can increase the amount of tax payable by up to 8.8%. 

For the 2012 income, the standard personal allowance equals €6,800 per person.

The tax year is the calendar year and runs from 1st of January to 31st of December. The annual tax return dead line is 30th of June for the previous tax year.
At Chesterfield Management we can discuss with you the options and available solutions where you can reduce your tax bill in Belgium.

To learn more contact us on our office telephone number 0044 (0)2070971385, request a call-back, or click here to email us .

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