Belgium

Social security contributions

The employee's share of social security taxes is 13.07% of the total gross compensation, with no cap.

The employer's share currently varies around 27%. 

Social security taxes are deductible in determining taxable income. For foreign employees with short-term assignments in Belgium who continue to be subject to the social security schemes of their home country, an exemption from social security may be granted, depending on the home country of the claimant.

As an example, foreign employees who are transferred to Belgium by a United States (US) employer for a period not exceeding five years and who remain covered by the US social security scheme, the Belgium/US social security agreement provides for full exemption from Belgian social security taxes.

Special social security contribution

A special social security contribution is also due, the amount varying between EUR 9.30 and EUR 60.94 per month. This contribution is collected by means of monthly deductions from net salary, although the final amount due will be determined through the tax return process on the basis of actual net taxable family income.

The special social security contribution is not tax deductible. The maximum amount due by a family on a yearly basis amounts to EUR 731.28.

Consumption taxes

Value-added tax (VAT)

The standard VAT rate is 21%. This rate applies to all goods and services not qualifying for one of the reduced VAT rates.

The following supplies of goods and services have a 12% VAT rate:

• Restaurant and catering services, excluding beverages.
• Margarine.
• Phytopharmaceutical products.
• Tires (Inner) tubes for wheels of agricultural machines and tractors, excluding tires or inner tubes for forestry tractors and motor-cultivators. .
• Certain combustible material (such as coal and solid fuels manufactured from coal).
• Housing within the framework of social policy, including private initiatives (under certain conditions).

Please note that this list is not exhaustive.

The following supplies of goods and services have a 6% VAT rate:

• Basic necessities, such as food and pharmaceuticals.
• Live animals and animal feed, fertilizers, and animal products.
• Distribution of water through pipelines.
• Transport services of persons.
• Hotels and camping.
• Admission to cultural, sporting, and entertainment venues.
• Energy, gas and heat through heat networks.
• Agricultural services.
• Copyrights; conducting concerts and performances.
• Private residences and institutions for the disabled.
• Services provided by institutions with a social purpose (under certain conditions).
• Housing within the framework of social policy (under certain conditions).

Please note that this list is not exhaustive.

VAT Exempt with Credit ('Zero-Rated')  - The following supplies of goods and services are VAT exempt with credit:

• Exports and certain related services.
• Intra-Community supplies of goods.
• Certain transactions on goods placed in a Customs or VAT warehouse.
• Imports, intra-Community acquisitions, and local trades within a VAT warehouse. or under special customs regimes.
• Cross-border passenger transportation by ship or aircraft.
• Supplies to diplomats and international organisations.
• Certain supplies of goods and services to certain vessels and aircrafts mainly involved in international passenger transport.

Please note that this list is not exhaustive.

VAT Exempt without Credit - The following supplies of goods and services are VAT exempt without credit:

• Healthcare services (excluding cosmetic surgery).
• Social services.
• Education services.
• Sport services.
• Cultural services.
• Banking services.
• Interest charges.
• Financial services (option to tax possible for payment and receipt transactions).
• Insurance services.
• Land and real estate sales.
• Property leasing and letting (ie. there is an option to tax provided specific conditions are met).

Note: Specific conditions may apply to the above two categories (i.e. VAT exempt with or without credit).

Net wealth/worth taxes  

Since March 2018 and until 30 September 2019, there was a 0.15% tax due on securities accounts that reached or exceeded EUR 500,000 (per account holder). In October 2019, the Belgian Constitutional Court issued a decision annulling this tax on securities accounts, with effect as of 1 October 2019. 

Since February 2021, an annual solidarity tax of 0.15% is applicable on securities accounts that reach or exceed EUR 1 million.

Inheritance and gift taxes

Inheritance tax is paid by heirs or legatees on the net amount inherited by each recipient from the estate of any deceased person who is considered to be a resident of Belgium. The inheritance tax rates differ across the regions. However, in each of the three regions, there is an exemption for the family home (although the conditions of applicability may be different). The surviving spouse or legally cohabiting partner is granted a full exemption on the net share of immovable property that was the family home at the time of the deceased person’s death. Furthermore, the exemption in the Flemish region also applies to the de facto cohabiting partner who lived together with the deceased for more than three years. This is not the case in the Walloon and Brussels capital regions, but there is a reduced inheritance tax rate for direct-line heirs with regards to the family home in these regions.

A special form of inheritance tax arises on the death of a Belgian non-resident who leaves property in Belgium. Tax is chargeable on the gross value of the property instead of on the net amount inherited by each recipient, at standard rates of inheritance tax. Transfer duty rules differ depending on the region where the deceased had fiscal residence.

In principle, a gift must be made by way of a Belgian notary deed. As all notarial deeds are required to be registered, Belgian gift taxes become due. Manual gifts and indirect gifts are exempt from Belgian gift taxes.

Gift tax rates vary based on the region where the donor has fiscal residence. In the Flemish and Brussels capital regions, registered gifts of movables are taxed at a reduced flat registration rate of:

• 3% for gifts in the direct line and between spouses, legal cohabitants or de facto cohabitants (who have been living together for at least one year)
• 7% for gifts between other individuals.

In all regions, gifts made no more than five years prior to the death of the donator and that were not subject to Belgian gift taxes are deemed added to the inheritance of the donor. Such gifts are subject to inheritance taxes and must be reported in the declaration of estate.

Inheritance tax legislation in Belgium is set for significant reform across all three regions. These developments are expected to have considerable implications for both individuals and businesses involved in wealth planning. At PwC, we are closely monitoring these changes and are ready to assist you in navigating the new regulations.

Property taxes

Local property tax is assessed on 'cadastral income', i.e. the deemed rental value attributed to the property by the authorities. Rates generally range between 20% and 50% of the 'indexed cadastral income'.

Resident taxpayers who own real estate abroad must report their foreign property in their Belgian tax return. Since 2021, they must submit a declaration to the Administration of Measurement and Valuations, which will determine the deemed rental value of the foreign real estate.

Stock exchange tax

The stock exchange tax is a flat-rate tax that is due on transactions (i.e. purchases and sales) of stocks and bonds as well as on redemptions of capitalisation shares of collective investment vehicles that are executed by Belgian residents through Belgian or non-Belgian financial intermediaries. The tax rates vary from 0.12% to 1.32% depending on the type of transaction. The tax is automatically withheld at source in case the transaction occurs through a Belgian financial institution. Otherwise, in case the foreign bank does not comply with its withholding and reporting obligation, it is the beneficiary's responsibility to report the transaction and pay the tax.

Other non-income taxes

Registration duties

Purchases and transfers of real estate located in Belgium, including buildings (except new buildings, which are subject to VAT as described above), are subject to registration duty at the rate of 12.5% of the higher of transfer price or fair market value in the Walloon and Brussels Regions. In the Flemish Region, the applicable rate is 10%. Since income year 2017, the Brussels Region has introduced an exemption of registration duties for the first EUR 175,000 provided several strict conditions are met.

In the Walloon Region, as of 1 January 2025, the rate applicable for the acquisition of a own dwelling can be reduced to 3% (instead of 12,5%) provided certain conditions are met. Flanders will do the same and reduce the rate from 3% to 2% provided certain conditions are met.

In case the purchase or transfer of land is subject to VAT, no registration duties will be charged on this purchase or transfer.

In principle, no registration duty is due upon a capital contribution; only a fixed fee of EUR 50 is due.

Stamp duties

Stamp duties are due on transactions relating to public funds that are concluded or executed in Belgium, irrespective of their (Belgian or foreign) origin, to the extent that a professional intermediary intervenes in these transactions. Exemptions for non-residents and others are available.