Capital Gains

As a matter of principle, Belgium doesn’t tax capital gains if they are made by way of “normal management of private wealth”. Private wealth is anything that you don’t use for your job or for professional purposes. And the normal management of your private wealth is what you do to keep your wealth growing safely, without speculating. Speculation would be e.g. borrowing to get leverage …

2021 Tax Return: Box XII – Paying your Taxes in Advance

If you have paid your tax in advance, e.g. because you don’t have an employer who deducts the tax from your salary, you report that under 1570/2570 in Box XII. Paying the tax in advance is highly recommended, in particular for self-employed. Not doing so results in a tax increase of 2.25% of the tax. If you don’t have to pay the tax in advance …

2021 Tax Return: Box X – Other Tax Deductions

Box X is for all sorts of payments or expenses that you have made and for which you can claim a tax reduction. That goes from gifts to charities (1394): the minimum is €40 per charity, if you have a tax certificate from the charity, you can recover up to 60% of the gift by reducing your tax bill (that is due to Covid, the …

2021 Tax Return: Box IX – Mortgages

In box IX you mostly report interest and mortgage payments to buy your main residence (under I) or another property (under II). The tax incentives to buy your main residence are a regional matter and you will see that the codes relating to your main residence start with a 3 (for him, on the left) or a 4 (for her). The rules depend on whether …

2021 Tax Return: Box VIII – Maintenance Paid and Losses from Previous Years

Losses If you have made losses in past years, i.e. you had more expenses than income, you can carry forward these losses to later years and deduct them here. Maintenance paid If you pay alimony and/or child support to your ex, you can deduct 80% of these payments from your income. Maintenance paid can be deducted up to 80% if you have a legal obligation …

2021 Tax Return: Box VII – Investment Income

Box VII is for the income of your investments, i.e. dividends and interest. These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. If that is the case, you don’t have to declare the interest or dividends in your tax return, but foreign banks do not withhold Belgian tax If you received …

2021 Tax Return: Box VI – Alimony and Child Support

If you receive alimony, you must declare it in Box VI under code 1192 and you will be taxed on 80% of the maintenance. There are separate codes for maintenance that is paid retroactively following a court decision (1193) and for maintenance that is paid in a lump sum. In that case, you have to declare every year a percentage of that capital. Child support …

2021 Tax Return: Cross border taxation

If you live in Belgium and you have income from another country, both countries will want to tax the entire income and that may result in double tax. To prevent double taxation, governments sign “conventions for the avoidance of double taxation”. In these double tax treaties, the two states agree which of them can tax business income, rental income, dividends, interest, royalties, salaries, pensions, etc. …

2021 Tax Return: Box V – Pensions

Box V is for pensions and other similar income. Your state pension goes in code 1228/2228 and a survivor’s pension goes in 1229/2229. The tax that has been deducted goes in code 1225/2225. Other pensions such as the complementary pension paid by a pension fund or other pension schemes are to be reported usually under code 1211/2211. Pensions paid by the European Institutions are not …