Belgium's Tax System and Structure in 2025

Belgium's tax framework centers on income tax and value-added tax (VAT), operating under a unified national system. Both foreign companies and individuals are subject to the same tax obligations as domestic entities and residents, ensuring a level playing field across the board.

Main Taxes and Rates in Belgium

The Belgian tax system comprises direct and indirect taxes. Direct taxes include corporate income tax, personal income tax, withholding taxes on dividends, interest, royalties, and rental income. Indirect taxes cover VAT, excise duties, stamp duty (including stock transaction taxes), registration fees, customs duties (including re-export), inheritance tax, and various miscellaneous levies such as environmental, energy, insurance, and education taxes.

Corporate Income Tax in Belgium

Belgium applies a uniform corporate income tax rate to both domestic and foreign-invested enterprises. All legal entities and organizations with legal status—excluding general partnerships—are required to pay annual corporate income tax. Since 2020, the standard rate has been set at 25%. However, companies with annual profits below €100,000 may qualify for a reduced rate of 20%, provided they meet specific eligibility criteria such as not being part of a larger corporate group and fulfilling small business definitions under local law.

Progressive Personal Income Tax Rates

Personal income tax in Belgium follows a progressive structure:

• Income from €0.01 to €15,200: taxed at 25%
• Income from €15,201 to €26,830: taxed at 40%
• Income from €26,831 to €46,440: taxed at 45%
• Income exceeding €46,440: taxed at 50%

This tiered approach ensures higher earners contribute proportionally more, while offering some relief to lower- and middle-income taxpayers.

Withholding Tax Rates

Belgian companies, as well as permanent establishments of foreign firms, must withhold tax on payments such as dividends, interest, royalties, service fees, and certain rental incomes. The standard withholding tax rate is 30%. However, this can be reduced or eliminated under applicable double taxation treaties. For instance, under the Belgium-Netherlands treaty, dividend withholding tax can drop to 0% for qualifying shareholders, encouraging cross-border investment within Europe.

Digital Services Tax and Global Minimum Rate

In alignment with international developments, Belgium has endorsed the G7 and G20 agreement on a 15% global minimum corporate tax rate. As a result, the country has decided against implementing a standalone digital services tax. This move supports multinational enterprises by reducing the risk of overlapping taxation and enhances compliance with OECD-led tax reforms under the BEPS 2.0 framework.

Carbon and Environmental Levies

As of 2025, Belgium does not impose a direct carbon tax. Instead, greenhouse gas emissions are managed through the European Union Emissions Trading System (EU ETS), which covers over 300 industrial installations in Belgium and accounts for around 80% of the nation’s emissions. Companies within sectors like power generation, manufacturing, and aviation must monitor, report, and surrender emission allowances annually. Future policy shifts may introduce complementary national measures, especially as EU climate targets tighten toward 2030.

Special Economic Zones and Customs Facilities

Belgium does not maintain traditional special economic zones (SEZs) with preferential fiscal regimes. However, businesses can apply for customs-approved bonded warehouses. These facilities allow deferred payment of import duties and VAT for up to 12 months. If goods stored or processed in these warehouses are subsequently exported outside the EU, the deferred taxes are waived entirely. Conversely, if goods enter the EU internal market, the applicable duties and VAT become due.

Major logistics hubs such as the Port of Antwerp and areas near Brussels Airport host numerous bonded warehouses operated by global logistics providers and regional distribution centers. These sites play a strategic role in supply chain efficiency, particularly for e-commerce and high-value goods. Companies leveraging these facilities gain flexibility in managing cash flow and optimizing international trade operations.

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