I have cancer (don't worry it's going very well :) , was in and out of the hospital the last couple of months for all sorts of things from surgeries, scans, chemo, emergency fevers, ... Lots of things to complain about in Belgium, but healthcare and associated finances isn't one of them. Not doing so means a possible €50-€1,250 fine plus increased taxes! If you’re employed in Belgium, your employer might deduct some money from your wages every month to cover the expected tax bill at the end of the year. It's not all bad though, our healthcare is one of the best in the world, education is heavily funded (most middle-class people can support their children going to college without going into huge amounts of debt), public transport is kind of cheap but VERY unreliable. Education for example (one of many examples) is funded much intensively than in Canada. A Belgian employee’s “real tax rate” (including VAT) is now 56.7%, compared to an EU average of 44.8%. To answer your question, no there's no extra benefits if you work for a living. Things like this are a trade-off. For more information on personal income tax and income tax for the self-employed, look in the ‘Taxes’ section of the portal. income taxes in the world. This is an annual indexed value determined by the tax authorities, but in practice the 1975 index is used, so that cadastral income values tend to be lower than actual rental incomes. Belgium is one of the most progressive countries in the EU because of its efficient tax system. Anyone that can find this back? So, I know that Belgium has incredibly high taxes (i think it has a marginal tax rate of up to 54%). Coming as an expat from the Netherlands, I am wondering why the income tax in Belgium is so high? Also, capital taxes. Personal income tax (PIT) is calculated by determining the tax base and assessing the tax due on that base. High expenses and no ability to have upper classes pay their share means extreme middle class tax rates as they're less mobile and more easily extortes. I live in Holland and work in Belgium. can you list others, that don't exist in Canada? As a child from a single mother who had to get by with government disability and some child support my father grudgingly paid: upward mobility definitely is a possibility. We are a federal state with 6 goverments. Tax revenue stood at 48% GDP in 2012. That means that a progressively higher tax rate is applied based on how much you earn. In autumn 2000 the Belgian government approved a comprehensive personal income tax reform which is being phased in progressively between 2002 and 2005. Also, I believe the standard VAT here (21%?) daughter and a baby boy on the way. Belgium has an elaborate social security system, good and affordable schools, decent infrastructure, good pensions, good unemployment benefits, affordable homes. Can we at least set fire to the trashcan and heat up some steam for some turbines using those 2 billion in euro-bills? A special expatriate tax status is obtained through a written application filed jointly by the employer and employee to the Belgian tax authorities within 6 months of arrival in Belgium. Personal Income Tax Rate in Belgium averaged 53.08 percent from 1995 until 2020, reaching an all time high of 60.60 percent in 1996 and a record low of 50 percent in 2003. All these things cost money. I have read on several websites that the income tax is insanely high in Belgium and was wondering if I can do anything to offset it. The word "student" loan doesn't exist in Belgium . SIX. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. I have been presented with an opportunity by my company (based in the US) to move to their Brussels office. Simply focus on the task at hand: to live the best life possible with the possibilities and the knowledge you have. The Belgian tax year is the same as the US, which is to say the calendar year. (20 hour contracts or bust). It's all about what you want your life to look like. No, there are no extra benefits. Taxes are collected on both state and local level. The cadastral value is increased by 40%, minus deductible expenses (which includes depreciation, repairs, maintenance, renovations, interest payments, as well as real estate and inheritance tax … Income tax Income tax must be paid by all people who have settled in Belgium or made it their centre of financial interest, regardless of their nationality. Even so, the rest of the tax spectrum was still rather high compared to today -- for example, a married couple earning an inflation-adjusted $255,000 in 1963 was in the 50% tax bracket. This is known as a précompte professionnel or bedrijfsvoorheffing. If not, how do people normally … Bulgaria is particularly attractive for entrepreneurs as the Balkan country has flat personal and corporate tax rates of just 10%. The tax system in Belgium Tax rates in Belgium are some of the highest in Europe. Otherwise, trying to figure out the very complex underlayings of each system may prove misleading and throw you off your path. Published 2 May 2020. If so, how do I exercise them? Health insurance is the real problem in NL. Press question mark to learn the rest of the keyboard shortcuts, https://www.reddit.com/r/belgium/comments/641hep/omstreden_biomassacentrale_langerlo_aan_zijden/. Are there any tax breaks associated with being an expat? This page provides - Belgium Personal Income Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Although this high of a tax rate might appear to be an inconvenience, the Belgian government uses the money to fund their extraordinary social programs. In hosptals you also don't have to pay anything at your appointment, your bill comes later but with the standard insurance already deducted automatically. The tax authorities calculate the amount of tax payable based on the annual income tax declaration. A new report by the OECD reveals that Germany is second only to Belgium when it comes to high tax rates in developed countries worldwide. The difference in taxation is a staggering 15%, or about 9,000 Euros based on the above mentioned salary! By Gavin Lee BBC News, Brussels. Foreign executives, specialists and researchers that qualify under this regime are treated as non-residents and as such are taxed only on Belgian-sourced income. The fact that Holland sits on about 25% of the EU natural gas reserve makes a difference in how you have to organize your taxes. Dividends, interest and royalties are taxable in both countries, and usually the tax withheld in the country of source is limited to 10 or 15% when you present a certificate of residence. Share. The average income tax rate in Belgium is 42%, which is the highest tax rate in the world. Belgium is now the country that taxes labour at the second-highest rate in the European Union; an employer in Belgium spends 2.15€ for a typical worker to net 1€ after taxes. Because just looking at statistics, the Netherlands pretty much outranks Belgium in every aspect, HDI etc. Belgium believes its high Covid-19 mortality rate is down to more rigorous counting of cases. What are you guys getting for this? Non-resident taxpayers, including foreign nationals living in Belgium who benefit from the expatriate special income tax regime, are subject to Belgian income tax on Belgian-sourced dividends. Which taxes and withholding taxes are we in charge of? As to why Belgian taxes are so high ( while getting no extras ) the answer is simple: highly inefficient and outdated system. Every tiny village here has a major, a council and a whole lot of people working for them. So you get the best of both world, lower income tax (NL), cheaper healthcare (BE), cheaper houses (NL) and better/cheaper education for your children (BE), the only real downside you have is the higher taxes on cars. Benefits for pensioners and the unemployed are good, if you find yourself without a job one day, you won't be living a luxurious lifestyle but you won't starve. Don't remember where I read it, but last year there was quite a comprehensive comparison on living costs in Belgium vs The Netherlands, and the conclusion was that in the end, both ended up with more or less the same 'income' after taking everything into account such as housing cost, health insurance, city taxes, etc. The problem is with fixing this since one measure conflicts with others. If we were as efficient as The Netherlands, Belgium would save 7 billion a year. Section IV – Contact point for further information . I have to say that there's a ton of good Dutch beers around. 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. We are taxed like the Scandinavian countries but receive the mediocre service of countries like France. each year and we experienced a lot of financial insecurity. Consider other countries first, especially if you plan to work in IT, finance or engineering. Residents of Belgium are taxable on their worldwide income, while non-residents are only taxable on Belgian-source income. The 50% in Belgium starts from 37k while the 50% bracket in Netherlands starts from 67k!! Most Canadian students have substantial debt but almost no Belgian student gruaduates with debt. 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