Living and working in different EU Member States

I live and work in different EU Member States. Where will I be taxed?

If you live in one country but work in another, you will often have tax obligations in both countries (the country of residence and the country where you are working). However, if the two countries have signed a convention for the avoidance of double taxation, the power of taxation will be divided between each of the States (either one of the two States will have full taxing power, or the two States will each be able to tax part of the income). 

Belgian authorities have concluded a separate convention for the avoidance of double taxation with each Member State of the European Union. In these various conventions, the country that has the right to levy tax (the country of residence, the country of source of the income or the country where the person concerned is working) is determined for each category of income.

Since these conventions can vary from one country to another, it is recommended that you always consult the convention that applies to your situation. In each convention, it is also important to consult the article relating to the type of professional income received (remuneration, profits, etc. or specific income as an artist, athlete, etc.). 

List of conventions for the avoidance of double taxation concluded by Belgian authorities

I live in Belgium but work in another EU Member State. What are my tax obligations in Belgium?

As a resident of Belgium for tax purposes, you must file an annual personal income tax return. In this return, you must include all the income you have received worldwide as a result of your professional activity (remuneration, profits, etc.) carried out in one or several other countries, as well as your other income (income from immovable property, income from movable property, etc.).

If, based on the convention for the avoidance of double taxation concluded with the other EU Member State, that country has the right to tax the income, you can then apply for tax exemption in your personal income tax return. 

The way in which Belgium, as the country of residence, must prevent double taxation is set out in the specific article on the avoidance of double taxation. This exemption is subject to the tax progression clause. This means that no income tax is due on exempted professional income, but the income as such is taken into account for determining the rate applicable to any other income. 

Certain conventions also allow a municipal or agglomeration tax to be calculated on the professional income to be exempted.

Remarks: 

• If you live in Belgium and work in several EU Member States, you will need to check the text of each convention for the avoidance of double taxation concerned.
• There are differences, for example where the period during which you are working abroad is lower than 183 days. In this case, if certain conditions are met, Belgian authorities may have the right to tax the income. You should consult the relevant convention.

I work in Belgium but live in another EU Member State. What are my tax obligations in Belgium?

Belgium, as the country where you are working, levies tax at source

If, based on the convention for the avoidance of double taxation concluded with your country of residence, Belgium, as the country where you are working, has the right to levy tax, the income will be taxed in Belgium. As a result, you will have to complete a non-resident income tax return.

For the purposes of calculating non-resident income tax, only income from Belgian source will be taxed in Belgium. However, you will have to declare the total amount of your income (i.e. income from Belgian source as well as income from foreign source). 
 
In certain cases, you will be entitled to certain benefits when tax is calculated.
Therefore, if your professional income liable to tax in Belgium amounts to at least 75% of the total amount of professional income (professional income from both Belgian and foreign source), you are entitled to a “tax-free allowance”. This means that part of the income liable to tax is not taxed. The tax-free allowance amounts to 10,570 euro (income year 2024 (tax year 2025)) (income tax year 2025 (assessment year 2026): 10,910 euros). This tax-free allowance may increase depending on personal circumstances (for example, if there are dependent children).
 
Tax is further reduced in the following cases:

• for certain income (e.g. pensions and replacement income, etc.)
• by deducting certain expenses (e.g., childcare, pension savings scheme, etc.). 

For many tax benefits, the condition is also that the professional income liable to tax in Belgium amounts to at least 75% of the total amount of professional income.

Remark: 
Residents of France, the Netherlands and Luxembourg whose professional income liable to tax in Belgium is lower than 75 % of the total amount of professional income are entitled to personal benefits in accordance with the convention for the avoidance of double taxation (e.g.  the “tax-free allowance”). However, these advantages are reduced in the following cases: 

• if you are a resident in France: in proportion to the remuneration of employees, profits or profits from a self-employed professional activity liable to tax in Belgium proportionally to the total amount of your worldwide professional income.
• if you are a resident in the Netherlands or Luxembourg:  in proportion to income liable to tax in Belgium proportionally to the total amount of your worldwide income.

Your country of residence has correctly taxed income of Belgian source

If, based on the convention for the avoidance of double taxation concluded with your country of residence, that country has the right to levy tax, Belgium cannot tax this income. In Belgium, this income of Belgian source is exempted based on a convention. 

However, if you receive additional income of Belgian source for which Belgium has the right to levy tax based on a convention, you have to file a non-resident income tax return. In this case, you have to mention the Belgian income that is exempted from tax based on a convention as well as your income from foreign sources in box XIV of your tax return. 

An exemption from filing a non-resident income tax return will only be granted if:

• all the conditions for exemption are met (see the convention itself) and
• you have the right to refer to the convention. This is only the case if the tax administration of your country of residence considers you to be a resident of that country for tax purposes. To this end, you must be able to present a certificate of tax residence (issued by the tax authorities of your country of residence).

In other words, if Belgian authorities must exempt income of Belgian source, whether totally or partially, the conditions for exemption set out in the convention must be met.

France - exception to taxation in the country where the person concerned is working

However, the convention for the avoidance of double taxation concluded with France provides for an exception to the rule of taxation in the State where you are working, namely workers with frontier worker status. There are conditions for being considered as a frontier worker, in particular: 

• To have their permanent home in the French border area,
• To work in the Belgian border area in the private or public sector with a commercial or industrial activity,
• To respect the limits of zone exits.

Despite carrying out a professional activity on the Belgian territory, a frontier worker’s Belgian professional income remains liable to tax in the worker's country of residence, i.e. France. However, this situation is subject to strict conditions and formalities. Only frontier workers who were entitled to this status on 31 December 2011 can be considered as frontier workers. Therefore, there are no more new frontier workers. Besides, this measure will end in 2033 (more information in the circular). 

I am a foreign athlete

In accordance with the text of most of the conventions for the avoidance of double taxation, tax is levied in Belgium on income received by a foreign athlete for sporting performances on Belgian territory.

The foreign athlete has more than 30 days of activity in Belgium per 12-month period (to be calculated in respect of each debtor of income)

The foreign athlete must file a non-resident income tax return (natural persons).

The foreign athlete has maximum 30 days of activity in Belgium per 12-month period (to be calculated in respect of each debtor of income)

Foreign athletes are liable to a payroll tax of 18% on income from their sporting performances in Belgium. This payroll tax is deducted at source and has a full discharge effect (i.e. is definitive), so the athlete as such does not have to submit a tax return if they have no other Belgian income for which they have to submit a tax return.

However, foreign athletes may choose to file a non-resident income tax return, even if their sporting performances in Belgium lasted 30 days or less. Sometimes this is more advantageous than the payroll tax of 18%. 

I am a foreign (stage) artist

In accordance with the text of most of the conventions, tax is levied in Belgium on income received by a foreign artist for their performances on Belgian territory.
 
Foreign artists are liable to a payroll tax of 18% on income from their performances in Belgium as stage artists.

Stage artists as such do not have to submit a tax return if they have no other Belgian income for which they have to submit a tax return. The payroll tax of 18% is the final tax due (full discharge effect).
 
A foreign artist may, however, choose to file a non-resident income tax return. Sometimes this is more advantageous than the payroll tax of 18%.