Every Belgian municipality (‘commune’) may subject its residents to an additional surcharge on their personal income tax. This tax is calculated by applying a percentage to the basic personal income tax. The rates vary from 0% to 9% depending on the municipality where the taxpayer is registered on 1 January following the income year. The amount due is typically settled every year via the personal income tax assessment.
If you worked part of your career in Belgium and decide to stay here or if you plan to retire in Belgium, you might want to consider drafting an international will. This will allow you to determine who will be entitled to your estate, or how your property will be divided in the event of your death, especially if you own assets abroad.
If you receive foreign earnings or own assets abroad, and you are a Belgian tax resident, you want to avoid paying tax on them both in Belgium and abroad. For this reason, double taxation agreements (DTAs) have been put in place to avoid that companies and private individuals pay tax twice on the same source of income. These bilateral agreements have been signed between many countries in the world with the purpose of avoiding international double taxation. The DTAs also aim to eliminate unintended double non-taxation, to stop tax discrimination, and to combat tax evasion in general.