For further details on p or corporate income tax, please refer to the ersonal ‘Tax Survey' publication on the website of Federal Public Service Finance - Belgium available at: is higher than the various consumption taxes we have in Canada (5%-15% depending on the province and the type of goods/services). Average tuition fee for a 4 year degree in Canada is $28K (almost $30 billion in debt), average in Belgium is $4K. The word "student" loan doesn't exist in Belgium . You can't work your way up here. The Belgian tax year is the same as the US, which is to say the calendar year. We have too many governments, in a needlessly redundant fashion, and each and every one of them step waay too much outside of their boundaries. daughter and a baby boy on the way. The tax authorities calculate the amount of tax payable based on the annual income tax declaration. We pay a lot less taxes on cars. Vastly underrated. income taxes in the world. 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. Appointed civil servants are usually a bit more lax than the non-appointed ones, yet when it comes time to cut some more personell, it's only the non-appointed ones that can be fired or put on a type of contract that leaves them with little wage and small pension rights. 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. As to why Belgian taxes are so high ( while getting no extras ) the answer is simple: highly inefficient and outdated system. 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. But it´s difficult to make a fair comparison. And regardless of your earned income (or possible distaste for the Belgian tax system), we must complete and submit it by June 26, 2014 at the latest. Source: Institut Économique Molinari Among the EU-28, Belgium is behind Austria (July 18th, unchanged from 2017), and France (July 27th, gaining two freedom days). Don't forget you have to the the average of Flanders and Wallonia for the Belgium statistics. Press question mark to learn the rest of the keyboard shortcuts. In Canada, you just show up for your appointment, consultation, x-ray or surgery and leave without paying anything. https://www.reddit.com/r/belgium/comments/641hep/omstreden_biomassacentrale_langerlo_aan_zijden/ 2 billion of your hard earned eurodollars getting thrown into the trashcan. Because of all the state run programs, I was able to get my Bachelor's degree and get a good job, my husband has a good job too and we're a financially secure couple of homeowners with a 2,5 y.o. I think it's because people who disagree with the high taxation just leave the country. Also cars. The 50% in Belgium starts from 37k while the 50% bracket in Netherlands starts from 67k!! You'll pay too many taxes compared to a lower earner with higher wealth, so you pay more despite smaller disposable income. (*although, this doesn't apply for things like physiotherapy, massages, and dentist appointments, as they would be covered under your/your spouse's work health insurance). The amount of taxes a person in Belgium has to pay … So income tax seems ridiculously high in Belgium. This means that the income is exempt, but it pushes your other income (the income that is liable to tax in Belgium) higher up in the progressive tax rates. 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. In principle, such a tax reduction involves two types of effects. If you live in NL you live a different life style to the one you have in BE. Most Canadian students have substantial debt but almost no Belgian student gruaduates with debt. Also, when such individuals have foreign dividends remitted directly to Belgian bank accounts, some tax treaties permit Belgium to withhold tax. Residents of Belgium are taxable on their worldwide income, while non-residents are only taxable on Belgian-source income. It's the schmuks like us that get stuck in de vlaamse klei. For the rest belgium has an inefficient government and a complicated system that swallows up a lot of the budget. It's a racket that makes any mobility of wealth a pipe dream. If so, how do I exercise them? Well, a major thing is politician's wages. Also, I believe the standard VAT here (21%?) Coming as an expat from the Netherlands, I am wondering why the income tax in Belgium is so high? 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. Maybe a topic worthy of investigation by some economics students. The Belgian tax rates amount to an effective rate of more than 50% for the highest earners (once social security is factored in), in comparison to an average of 45% in the rest of Europe. Anyone that can find this back? each year and we experienced a lot of financial insecurity. 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. So I guess I'm just wondering if there are any extra benefits Belgians receive since the taxes here are so high? All these things cost money. Otherwise, trying to figure out the very complex underlayings of each system may prove misleading and throw you off your path. But, United States expats who work in Belgium are subject to the bilateral agreement between the countries that governs social security. Reason: Hugely inefficient government + too many inactive people = 54 % of GDP goes to the government. With four civil servants per 100 inhabitants, Belgium has a large lead over Germany (3.2), France (3.6) and the Netherlands (2.9). In comparison, 60,000 Euros (equivalent to about $87,000 Canadian Dollars at the moment) would be taxed at an average rate of 27% in Vancouver, Canada. If you're considering working for a couple of years, and to then go into government benefits, Belgium is amongst the best countries for you. In autumn 2000 the Belgian government approved a comprehensive personal income tax reform which is being phased in progressively between 2002 and 2005. What are you guys getting for this? As you can imagine, all these people need to be paid and that takes up quite a lot of money. 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. However, I recently had an interesting conversation with my classmate's friend and found that his average income tax rate is about 42% based on his salary of about 60,000 Euros per year (I think he makes a bit more than that). Taxes are collected on both state and local level. (20 hour contracts or bust). There is a huge difference in how we rank in Europe. Belgium believes its high Covid-19 mortality rate is down to more rigorous counting of cases. Education is cheaper then in canada and there are oher differences . No, there are no extra benefits. We are taxed like the Scandinavian countries but receive the mediocre service of countries like France. Corporate taxes in Belgium The tax base is low -> higher taxes. Tax revenue stood at 48% GDP in 2012. Belgium has an elaborate social security system, good and affordable schools, decent infrastructure, good pensions, good unemployment benefits, affordable homes. 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. surely it isn't just to build bridges and roads and other … You get more back than 70% at the doctor. All Belgian workers pay into the social security scheme in Belgium at tax rates between 0.05% and 13.07%. 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. Flanders is pretty on par with The Netherlands in most statistics to be honest. Judging Dutch beer by Heineken alone is like claiming Stella is the best Belgian beer. Even though gross wages are more or less the same in CA and BE (1). They have quite a few types we don't. I am a Canadian student who recently moved to Belgium for graduate school, and I'm considering looking for a job here after I have finished with my studies (or in other parts of Europe). The problem is with fixing this since one measure conflicts with others. Belgium is one of the most progressive countries in the EU because of its efficient tax system. If not, how do people normally … Roughly 40 % of Belgians work to pay for the 60 % that doesn't work. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. 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. The 50% in Belgium starts from 37k while the 50% bracket in Netherlands starts from 67k!! 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. Personal income tax (PIT) is calculated by determining the tax base and assessing the tax due on that base. Simply focus on the task at hand: to live the best life possible with the possibilities and the knowledge you have. As an individual, small and medium-sized enterprise or large firm, you are liable to pay tax in Belgium. Not yet, but give it 10-15 years and parties like OVLD and NVA will be telling you that it's fair to pay a year's wages for a year of higher education just like across the pond. SIX. BE is a tax paradise for the rich, but not for those who work and earn a salary. As to why Belgian taxes are so high ( while getting no extras ) the answer is simple: highly inefficient and outdated system. You need taxes to make this happen. Every tiny village here has a major, a council and a whole lot of people working for them. Which taxes and withholding taxes are we in charge of? Education for example (one of many examples) is funded much intensively than in Canada. Belgium has a bracketed income tax system with five income tax brackets, ranging from a low of 25.00% for those earning under €7,900 to a high of 50.00% for those earning more then €34,330 a year.. How does the Belgium Income Tax compare to the rest of the world? 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. Things like this are a trade-off. I haven't visited a doctor yet but I heard that in Belgium, you pay for medical care up front and then you will eventually be reimbursed for only 70%? Patrick Derthoo, a tax expert at Deloitte in Brussels, Belgium, said income taxes in the country are unusually high but things are starting to change. 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. Because just looking at statistics, the Netherlands pretty much outranks Belgium in every aspect, HDI etc. By Gavin Lee BBC News, Brussels. If you’re employed by a Belgian firm, they will deduct tax at source before paying you. The taxes collected by Ireland amount to 23% of its GDP. And still we lack politicians to actually want to do something about it, New comments cannot be posted and votes cannot be cast, Looks like you're using new Reddit on an old browser. You have successfully moved to Belgium as an expat and made it your new home. The only reason Belgium somewhat works is because we are so wealthy that we are able to overspend to make up for years of incompetence. I have been presented with an opportunity by my company (based in the US) to move to their Brussels office. There are pretty big differences within Flanders too. Foreigners living in Belgium are considered a resident for tax purposes if their main family home or the center of their economic activity or interests is in Belgium. Health insurance is the real problem in NL. 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. , but I am now genuinely curious about why Belgium supposedly has the highest (or second highest?) So let's not pretend that Belgium doesn't enjoy any free lunches. Healthcare but especially education is much more cheaper (aka more taxes) in Belgium. That's why someone earning a mere 25k is already in the 50%+ tax levy (if you incl social security), or why the highest bracket starts at a mere 40k gross. Like in any country, there are different types of taxes in Belgium. can you list others, that don't exist in Canada? I'm actually trying to figure out what the effects of increased taxes in Canada might be....but in order to do that, i'd like to do a sort of case study. Add to that some quid-pro-quo corruption in politics leaking funds left and right. Coming as an expat from the Netherlands, I am wondering why the income tax in Belgium is so high? We are a federal state with 6 goverments. We do not get what we pay for. Belgium taxes its residents on their worldwide income, irrespective of their nationality. Published 2 May 2020. To answer your question, no there's no extra benefits if you work for a living. Belgium drops down from second to third on the list of countries most heavily taxed in Europe and gains 10 days of TAX freedom with respect to 2017, where the Tax Liberation Day for workers was July 27th. 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. 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. Article 2, §1er, 5° Belgian Income Tax Code . If we were as efficient as The Netherlands, Belgium would save 7 billion a year. 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. 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. Alternatively, I am also considering looking for work in the Netherlands or the United Kingdom, but I am now genuinely curious about why Belgium supposedly has the highest (or second highest?) Not just 6 governments. 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. Are there any tax breaks associated with being an expat? The difference in taxation is a staggering 15%, or about 9,000 Euros based on the above mentioned salary! It's all about what you want your life to look like. 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 … We escaped! 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. At local level, property taxes and various fees are collected . The Personal Income Tax Rate in Belgium stands at 50 percent. But we are getting to a point where money is starting to run out or the base just can't keep supporting it. Share. I have to say that there's a ton of good Dutch beers around. Check out our expat guide to tax on savings and investments in Belgium, including incomes, shares, capital gains tax, and speculation tax. I live in Holland and work in Belgium. Don't forget that Brussels is the de facto capital of Europe which brings quite some economic activity this way that otherwise wouldn't be here. The tax system in Belgium Tax rates in Belgium are some of the highest in Europe. What are you guys getting for this? Getting a decent answer on your question would need a very thorough analysis on the financials of our government. He is an expat from another part of Europe and he was also very surprised at the high income taxes. Belgium has a progressive tax system. For more information on personal income tax and income tax for the self-employed, look in the ‘Taxes’ section of the portal. In Belgium, taxes are collected on both state and local level.The most important taxes are collected on federal level, these taxes include an income tax, social security, corporate taxes and value added tax.At the local level, property taxes as well as communal taxes are collected. But in your position I wouldn't ask why, simply because any answer will add more doubt ( variables ) than certainty to your question. So, I know that Belgium has incredibly high taxes (i think it has a marginal tax rate of up to 54%). Wel we have eternal unemployment benefits, more pension benefits for those who barely or didnt work, health care costs overal are the same but belgium seems to be more efficient in those then canada that has less care and more wait tims it seems. 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. Learn why is Belgian beer so damn good If you’re not already into craft beer then hopefully you’re thinking about it but may not know where to start, so if that’s the case then I’ve got a suggestion: start with Belgian beer as that’s exactly where my adventure began. Instead, you should just compare the different taxations, work environments and what different countries have to offer you for your services ( getting employed there ) and simply draw a line and decide which one suits you best. A Belgian employee’s “real tax rate” (including VAT) is now 56.7%, compared to an EU average of 44.8%. Did you get these numbers from somewhere? I'll give you your answer in one word: bloat. This statistic shows the personal income tax rates in the Benelux region (which consists of Belgium, Luxembourg and the Netherlands) as of November 2019. Now you are planning for your future by considering to build up savings and investing in Belgium. You pay EUR 25 and get 21 back, you can get the extra EUR 4 (remgeld) back with a hospitalisation insurance.For poor people there's the "derdebetaler" system so the patient only has to pay the EUR 4 "remgeld". Press question mark to learn the rest of the keyboard shortcuts, https://www.reddit.com/r/belgium/comments/641hep/omstreden_biomassacentrale_langerlo_aan_zijden/. For residents or companies operating in Belgium, the taxes vary in accordance to monthly salary, properties, capital gain, type of company and other factors. This reform was motivated by the high levels of taxation that generated adverse labour market effects. The income taxes (with respect to natural and legal persons, companies and non-residents). Cars are also prohibitively expensive. income taxes in the world. The goals of what to do with those funds is ok, but they're used relatively inefficiently in a structural manner. Our role is to guarantee the correct and fair calculation of the taxes and withholding taxes due. Consider other countries first, especially if you plan to work in IT, finance or engineering. So income tax seems ridiculously high in Belgium. That means that a progressively higher tax rate is applied based on how much you earn. ... Why so many people are dying in Belgium. Bulgaria is particularly attractive for entrepreneurs as the Balkan country has flat personal and corporate tax rates of just 10%. The average income tax rate in Belgium is 42%, which is the highest tax rate in the world. This page provides - Belgium Personal Income Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Also, capital 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. This is known as a précompte professionnel or bedrijfsvoorheffing. Romania and Bulgaria collect 27,1% and 29,9%, respectively. Decades of compassionate christian-democrats (the more social than conservative kind) and socialists, combined with a tiny territory with open borders that makes capital flight super easy. (I'm including unemployment insurance, pension contributions and everything else). 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. Not doing so means a possible €50-€1,250 fine plus increased taxes! 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. But in your position I wouldn't ask why, simply because any answer will add more doubt ( variables ) than certainty to your question. But what i don't know is what does that money go towards after? wow, i like your arguments! As expats registered as foreigners in a Belgian city hall, we all receive this tax form. Belgium is a organized in regions and provinces, which means that tax rates may differ from one province to another. I have the same feeling but would like to see the comparison in depth. I grew up in social housing, had to apply for a "studiebeurs" (scholarship?) Section IV – Contact point for further information . 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