The country where your tax residence is located can levy taxes on all your worldwide income. Questions about your tax residence? Read this page first.
Taxable income consists of four categories:
- 1. Professional income
Professional income consists of wages, any additional reimbursements and/or replacement income such as pensions, early retirement pensions, unemployment benefits, illness and invalidity benefits, etc.
- 2. Real estate income
Real estate income is the income you get from property; homes, apartments, land, … In some cases, the real estate income should be stated in the tax return. The owner-occupied home often does not have to be mentioned or included. Depending on how the property is used, the real estate income is determined based on the cadastral income or the received rent.
- 3. Investment income
Investment income is the income you get from bank accounts, loans, bonds, shares or certain life insurances. This income can be interests, dividends, royalties, annuity, etc.
- 4. Alimony
An alimony is a sum of money someone regularly deposits to an (ex-)family member (child, parent, spouse…).
Tax residence in Belgium
If you are a tax resident of Belgium, then your worldwide income will be taxed in Belgium. If you receive income with foreign origins, you have to state the gross amount of your foreign taxable income, minus the compulsory contributions paid.
The paid foreign taxes can consist of:
- Withholding tax (similar to payroll tax) that is withheld by the employer
- Additional tax paid abroad
Sometimes you may be entitled to a tax credit for foreign income. Your foreign wage (or part of it) can be exempt or be subject to a reduced rate. For more information, contact the Belgian tax authorities (see below for contact details).
If you are a Belgian tax resident and have a second residence abroad, you have to state the relevant real estate income. If you rent out the residence, you state the gross rental price in your tax return after deduction of foreign taxes on this income. If you don’t rent out your residence, state the gross rental value (*) in your tax return after deduction of foreign taxes on this property.
(*) The rental value is the average annual gross rent that you could have received in the event of rental during the taxable period.
Tax residence in another country
If you are not a Belgian tax resident AND you have no income of Belgian origins, then you don’t need to file your tax return in Belgium. If you are not a tax resident but still receive an income, you should file a non-resident tax return.
More information about taxes to be found at the website of FPS Finance.
Tip: Do your research about double taxation treaties. Be sure to take a look at the overview of tax treaties. Should you have any questions, contact BELINTAX.