If you are interested in investing in Belgium, check out this guide explaining your options and offering tips on how to invest your money wisely.
Investing money is a great way of providing for your future. However, it’s important to come up with a sound plan and look at the various different options from pensions in Belgium to buying property in Belgium to opportunities on the financial market.
This guide to investing in Belgium includes sections on:
Invest according to your risk profile and time horizon
Measure your investment opportunities
Don’t borrow to invest
Investment advice in Belgium
Useful resources
ING Belgium
Looking to investment in Belgium? With over 50 years of experience in helping expats with their finances,INGis well-placed to help you get more from your money in Belgium. They offer a range of banking and financial services, providing expert advice that can help you boost your investment portfolio with confidence. Take your finances further in Belgium with ING.
Belgium has an open economy with a range of investment options open to any resident, as well as some for non-residents. The country is 48th in the world in terms of economic freedom, with a stable economy, an open market, and a high level of investor freedom. However, income tax levels are high; as a result, it’s important to plan effectively if you are to get the most out of investing in Belgium.
Savings account investments in Belgium
Savings accounts are a popular way of investing in Belgium. Although, as with other countries, they typically offer lower returns as the risks are much lower. Most banks in Belgium offer a free range of savings account options; some may require a minimum deposit, though. Accounts are often available to non-residents, as well. The way money is earned on savings accounts is through interest accrued, which in Belgium is currently up to 0.35% with a set tax-free allowance.
The Belgian pension system has a three-pillar pension system, with a mandatory state pension supplemented with optional occupational and private pensions. Private pension plans in Belgium are available through banks and life insurance companies. They typically offer higher interest rates and higher returns than savings accounts. They have tax advantages of between 25-30% on investments, although there are normally annual fees. Plans receive protection from the government up to a value of €100,000 in the event of bankruptcy or non-payment on returns.
With pension savings plans, you can decide how much you want to pay into the plan and when. Tax credits are available of 30% on investments of up to €980 a year and 25% on investments of up to €1,260. There are two types of private pensions investment plans in Belgium:
Pension savings fund (pensioenspaarfunds) – payments are invested in mutual investment funds consisting of shares, bonds and cash. These funds offer higher long-term returns but are higher risk and there is no protection or guarantee.
Pensions savings insurance plan (pensioenspaarverzekering) – you accrue interest through a “branch 21” type savings insurance policy at the fixed interest rate each time you make a deposit. With some policies, you also receive a share of company profits if it performs well.
Property investments in Belgium
After an early 21st-century housing boom, Belgium’s property market has slowed down in recent years. Real estate investors can benefit from relatively low property prices compared with Belgium’s neighboring countries as well as low mortgage rates in Belgium. Transaction costs and property-related taxes are high, however. There are no restrictions on expats making property investments in Belgium; money can be made through property sales and buying to rent the property in Belgium. House prices continue to rise although the market is slowing down, with Belgium’s house price index rising by 2.6% towards the end of 2018. Gross rental yields on apartments and houses range from 4.46 – 5.53%.
The current average price for a semi-detached house in Belgium is €195,000. The most expensive region is Brussels, where the average price is €365,000. Flanders sits in second (€225,000) with Wallonia (€137,000) bringing up the rear.
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Business investments in Belgium
Belgium is a good place for starting up or investing in business. It has no trade restrictions, good connections to the rest of Europe, a thriving entrepreneurial environment, and more than 500 million consumers within a radius of 800km. If you are looking to start a business in Belgium, the process is fairly straightforward. For larger-scale investments, the Belgian government has a business investment portal with information and links to the regional investment agencies.
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Investment funds in Belgium
Investment funds pool the money of investors and invest it according to set financial strategies. This is a more high-risk and high-cost form of investing but can yield better returns. Those interested in investing in Belgium can choose from a range of investment funds with banks or independent fund brokers. Funds can be public (such as mutual funds) or private (such as hedge funds). Some of the funds available in Belgium are:
Exchange-traded funds (ETF): also known as tracker funds, ETFs are a type of mutual fund indexed to the stock exchange. They can combine various different assets, are low-cost and easy to trade, but offer no guarantee of a return.
Equity funds: also known as stock funds, these are another type of mutual fund that invests principally in stocks and shares. They generally offer long-term growth through capital gains.
Bond funds: also known as debt funds, these mutual funds invest in bonds and other debt instruments, paying periodic dividends such as interest payments.
Mixed funds: funds that invest in a combination of shares and bonds.
Hedge funds: private investment funds only open to a limited number of investors. They offer higher returns but are more costly, are subject to fewer regulations and involve greater risks.
Fees, investment amounts, and likely returns for investment funds vary according to fund type and provider. As a result, it’s a good idea to research the most suitable options. Unless you have experience with investment funds and investing in Belgium, it’s advisable to speak to your bank’s investment fund manager or a qualified financial advisor before deciding how best to invest.
Investing in stocks and shares in Belgium
As well as investing in stocks and shares through third-party investment funds in Belgium, you can also buy and sell shares directly through the Belgian stock market. Anyone can buy shares in publicly listed companies on the Belgian Stock Exchange. The main stock exchange in Belgium is Euronext Brussels where you can find out information on current share prices for Belgian companies. The stock market in Belgium is regulated by the National Bank of Belgium and the Financial Services and Markets Authority. Belgium’s stock market index is the BEL20 which has increased by 19.13% since the start of the year.
If you’re interested in stocks and shares and looking to set-up your own investment portfolio, check out a local investment bank. The following Belgian banks can help you with your investments, no matter your experience level:
You can buy and sell shares in Belgium by setting up an online account with MeDirect or through a provider such as a Belgian bank. Fees associated with trading in stocks and shares can include transaction fees and monthly account fees as well as taxes, so check this upfront with the provider.
Offshore investing in Belgium
Belgium offers a number of offshore banking opportunities to expats and companies based in the country. Offshore banks offer flexible money arrangements, some services not available through domestic banks, and tax advantages on savings. However, they tend to be more expensive and generally require larger investments than regular banks. See the Expatica guide to offshore banking for more information.
Other forms of investing in Belgium
Other forms of investing in Belgium include:
Government savings certificate – this is a bond issued by the Belgian government which can be purchased by residents. The bond has an annual fixed coupon in euros. 100% of invested capital is paid out (minus transaction fees) upon maturity.
Commodities – you can invest in commodities such as oil, gas, gold, or silver directly through commodity trading companies or through a number of investment funds that offer this.
Tax on savings and investments in Belgium
Generally speaking, your tax liability in Belgium varies depending on whether you’re considered a resident for tax purposes. Foreigners are considered tax residents if their main home or their main economic interests are in Belgium.
Residents of Belgium are taxed on worldwide income, while non-residents are only taxed on income originating in Belgium.
If you’re considered a non-resident for tax purposes, you’ll be taxed on income from investments such as bonds and shares in Belgium, but won’t need to pay tax on interest accrued from Belgian bank accounts or regulated savings accounts. Instead, you will need to declare any such income in your home country and pay tax there.
Taxes on savings in Belgium
The Belgian tax on savings income depends on the type of Belgian savings accounts taxpayers with resident status hold. There are two kinds of Belgian savings accounts: regulated and non-regulated. We advise you to speak to a professional tax advisor to learn about the differences between regulated and non-regulated savings accounts and how it affects the taxes you pay in Belgium.
Taxes on investments in Belgium
There is a general 30% withholding tax rate on income derived from investments in Belgium, such as interest and dividends, plus a tax on stock exchange transactions. On regulated savings accounts, the first €940 is exempt from tax with anything above this taxed at a rate of 15%. Tax on stock exchange transactions range between 0.12% to 1.32% per transaction. For those who invest in buy-to-let property, current tax on rental income in Belgium is between 25-50% (depending on income bracket).
For more information on tax, see the Expatica guides to taxes in Belgium.
How to invest wisely in Belgium
Diversify your investments
To get the most out of investing in Belgium, it pays to shop around and look at building a portfolio. “The investment portfolio theory says that the diversification of your investments should not only lead to a higher return on your portfolio but also to a lower risk profile in the long term” says Dave Deruytter, head of expatriates at ING Belgium. “Therefore putting all your money in one asset may not be the best of options. This applies to real estate investment too. A direct investment in one real estate asset, an apartment for example, is illiquid and not diversified as compared to a real estate investment fund, investing in many different real estate assets.”
Invest according to your risk profile and time horizon
“It is important to know who you are as an investor before deciding on the allocation of investment money. Banks and financial advisors must study your risk profile, knowledge, and experience of the different financial products, how you would react to a fall in the value of an asset and, importantly, how long you can do without the money” explains Dave.
“Eventually you will be categorized as a secure, moderate, balanced, dynamic or aggressive investor. The first type of investor, the ‘secure’ one, could be someone with 100% of his or her assets on savings accounts, the latter, the ‘aggressive’ one, with 100% on the stock market or even a part in derivative financial products.
Both your risk profile and your time horizon will change with age or time. A yearly update of your investor profile is thus useful.”
Measure your investment opportunities
“It is important to shy away from investment offers that are too good to be true” warns Dave. “Either you missed the catch in the small print of the dream deal, or someone is trying to steal your money.”
This is why it always pays to thoroughly check investment opportunities out, only use regulated services and seek advice from a professional if you are not sure.
Don’t borrow to invest
Investment in Belgium, as with anywhere else, should be about trying to grow your surplus income, not digging yourself a hole of debt. “Investment is a risk activity and it should be highly discouraged to borrow to invest in risk assets. It shouldn’t feel like betting the house” says Dave.
Investment advice in Belgium
Most Belgian banks and financial institutions have investment advisors who can be contacted by appointment. Unless it is an advisor with your own bank, you will probably have to pay for the service. You can search the Expatica directory to find details of financial services and advisors. Another option is to get expat advice from your national chamber of commerce in Belgium, for example the British Chamber of Commerce in Belgium or the American Chamber of Commerce in Belgium.
ING Belgium provides expert advice to expats living in Belgium on investment as well as a range of other money management matters.
The Belgian pension system is different than in the US. There's no direct equivalent to the Roth IRA. But due to the way investments are taxed in Belgium, you can come close to a Roth IRA by investing in accumulating stocks ETFs, meaning funds that invest in stocks of companies.
You can buy and sell shares in Belgium by setting up an online account with MeDirect or through a provider such as a Belgian bank. Fees associated with trading in stocks and shares can include transaction fees and monthly account fees as well as taxes, so check this upfront with the provider.
A SIPP is the 401(k) UK equivalent in terms of government tax reliefs. The pension 'wrapper' makes it easy to invest for retirement and build up a pot over time, without them being subject to income or capital gains tax, for example.
The median wage is 3,550 euros. This means that 50% of employees earn a maximum of 3,550 euros, while the other half earn a higher salary. The largest group, 69% of all employees, earns an amount between 2,000 euros and 4,250 euros gross per month.
Capital gains are not taxable to individuals in Belgium, provided they are realised within the framework of the normal management of the individual's private estate.
Interest and dividends paid out and collected via a Belgian financial institution are, in principle, subject to a flat-rate tax of 30%. Interest from ordinary savings accounts is exempted from taxation up to a limit of EUR 980 (income year 2023). Any interest exceeding this amount is subject to tax at a rate of 15%.
The King Baudouin Foundation (KBF) (Dutch: Koning Boudewijnstichting, KBS; French: Fondation Roi-Baudouin) is a foundation based in Brussels (Belgium). It seeks to change society for the better and invests in inspiring projects and individuals.
Vanguard is only available for US and UK retail investors. Unless you are a professional investor, you will not open a personal account in any other European country.
The Vanguard S&P 500 ETF is one of the largest and most popular ETFs (third in assets under management, or AUM). The ETF's low-cost and large-size combination makes it a great choice if you're looking to invest in the broader market.
In Belgium, a tax exemption applies to the first €800.00 (income year 2023) of dividend income earned per taxpayer. This exemption allows taxpayers to reclaim the 30% WHT previously withheld on no more than €800.00 of Belgian dividend income. For foreign dividends, in most cases, no Belgian WHT was deducted at source.
Dividend income. Dividends received by a Belgian company are first included in its taxable basis on a gross basis when the dividends are received from a Belgian company or on a net basis (i.e. after deduction of the foreign WHT) when they are received from a foreign company.
Of course, investors who realize a capital gain after selling an ETF are subject to the capital gains tax. Currently, the tax rates on long-term capital gains are 0%, 15%, and 20%.
A Roth IRA or 401(k) makes the most sense if you're confident of having a higher income in retirement than you do now. If you expect your income (and tax rate) to be higher at present and lower in retirement, a traditional IRA or 401(k) is likely the better bet.
When it comes to early retirement account withdrawals, the rules are the same for both U.S.residents and nonresident aliens. Your entire 401(k) withdrawal will be taxed as income by the U.S. even if you're back in your home country when you withdraw the funds.
Yes, a U.S. citizen living abroad can have both a traditional and/or Roth IRA. The restrictions only come with making contributions—so, if you had an existing IRA before you moved abroad, you don't have to get rid of it or transfer assets, but you may not be able to add to it while you're overseas.
Following Finland, the best countries for pensions are Poland and Sweden. Both boast an average retirement age of 65, below the average of 66, and Sweden has an impressive 100% rate of participation in funded pensions.
If you do choose to transfer funds from a U.S. Qualified Plan to a foreign retirement plan, it will be neither be tax free nor will it count as a qualified rollover. This means moving your 401(k) to an international fund will result in U.S. tax liability and possibly the 10% penalty for an early withdrawal.
Any taxable earned income of an American expat above the foreign earned income exclusion amount (in the 2022 tax year, above $112,000) can support a contribution to a 401(k).
Belgium Average Monthly Salary data was reported at 3,832.000 EUR in 2020. This records an increase from the previous number of 3,758.000 EUR for 2019. Belgium Average Monthly Salary data is updated yearly, averaging 3,065.000 EUR from Sep 1999 to 2020, with 22 observations.
The most common occupations in Belgium are office jobs in the public and private sectors. Other popular roles include hospitality staff, shop assistants, teachers and maintenance staff in hotels and offices. Most Belgian nationals commute to work in a different region from where they live.
Belgium's median household income hit (PPP) $67,620 in 2021, an increase of 1.1% over the previous year. Between 2010 to 2021, Belgium's median household income increased by 36.7%.
Belgium puts its tax dollars to work by financing robust health care, education and social security programs, said Huyghe. Many students go to university without having to make any significant payments, he said.
Everyone is entitled to a personal tax-free allowance (belastingvrije som, somme exonérée). This stands at €9,270 in 2023 (applying to earnings from 2022) and will rise to €10,160 in 2024 (applying to earnings from 2023). Your tax-free allowance increases if you have children.
Singapore once again joins the list of nations offering competitive incentives for entrepreneurs and capital. The thriving city-state continues to attract foreign capital with its strong banking security and alluring tax incentives. Thus, there is no capital gains tax in Singapore.
Tax free allowances of maximum 30% of the gross salary, limited to EUR 90,000 per year, can be granted on top of the gross salary. On top of this 30%, certain costs related to moving and schooling may be accepted. These include: Costs for moving to Belgium, limited to one trip to find a new residence in Belgium.
Any income earned in Belgium will be subject to taxation in Belgium, unless otherwise stated in the applicable tax treaty. For real estate income from a Belgian source, Belgium is always authorized to levy a tax. In case you own Belgian property, but do not rent it out, the property tax is the only tax due.
Belgium. A previous wealth tax on securities accounts in Belgium was replaced by the “Solidarity Tax” in October 2019. This applies a flat rate wealth tax of 0.15% on securities accounts that reach or exceed €1 million ($1.06 million).
Belgium - Inequality of income distribution was 3.41 in December of 2021, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Belgium - Inequality of income distribution - last updated from the EUROSTAT on March of 2023.
Belgium hosts the EU and NATO, as well as numerous headquarters of multinationals and major global players. More international organisations are located in Brussels than Washington D.C., along with about 120 international government organisations, 181 embassies, over 5,000 diplomats and more than 1,000 lobby groups.
Presentation. Opening up a bank account for foreigners in Belgium is easy and straight forward. You can open an online account without setting foot in a bank or just go to any bank office and take a proof of identity - a passport or a Belgian ID is usually enough - and you will get a bank account in no time.
Foreign nationals are eligible to open a Belgian bank account as long as they have an economic link or live in the country. Many Belgian banks also accept a non-Belgian address. For some, just an email address is enough, plus valid ID. Most banks offer low-barrier accounts for expats.
A Convention for avoidance of double taxation has been agreed upon between the USA and Belgium. You may find the text in English on the website of the IRS , as well as general information about the convention.
The exemption limit for dividend income in India for the financial year 2021-2022 is Rs. 5,000. This means that any dividends received up to this amount are not taxable. Any dividends received above this limit are subject to income tax at the applicable rate.
The income tax rate for foreigners in Belgium ranges from 25% to 50%, depending on how much income you earn throughout the year. Just like in the US, the Belgium tax year runs from January 1 to December 31. US expats who are residents need to file their tax returns by June 30 (by mail) or July 15 (online).
One common strategy is to close out positions that have losses before their one-year anniversary. You then keep positions that have gains for more than one year. This way, your gains receive long-term capital gains treatment, lowering your tax liability.
If you hold ETF shares for one year or less, then gain is short-term capital gain. If you hold ETF shares for more than one year, then gain is long-term capital gain.
ETFs, on the other hand, don't have to subject their investors to such harsh tax treatment. ETF providers offer shares "in kind," with authorized participants serving as a buffer between investors and the providers' trading-triggered tax events.
A few European countries have similar schemes: in the UK this would be a Lifetime ISA, in Germany it would be the Riester Rente and Rürup Rente. These types of privately funded retirement accounts are often called the third pillar of a pension system.
On this page you'll find 10 synonyms, antonyms, and words related to Roth IRA, such as: keogh plan, retirement plan, self-funded retirement plan, and tax-free savings account.
Yes, a U.S. citizen living abroad can have both a traditional and/or Roth IRA. The restrictions only come with making contributions—so, if you had an existing IRA before you moved abroad, you don't have to get rid of it or transfer assets, but you may not be able to add to it while you're overseas.
The key difference is that you can add contributions to a Traditional IRA up to the age of 70½ and tax-deferred whereas there is no age limit for contributing to a Roth IRA and contributions are not tax-deferred.
With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½.
Retirement experts often recommend the Roth IRA, but it's not always the better option, depending on your financial situation. The traditional IRA is a better choice when you're older or earning more, because you can avoid income taxes at higher rates on today's income.
There's no single correct amount to save for retirement. For example, a $500,000 nest egg may be a good amount, but some retirees may be able to live on less than that. Others may need more, depending on where they live and how many dependents they have.
Most of our experts agree that one of the safest places to keep your money is in a savings account insured by the Federal Deposit Insurance Corporation (FDIC). “High-yield savings accounts are an excellent option for those looking to keep their retirement savings safe.
The easiest way to escape paying taxes on an IRA conversion is to make traditional IRA contributions when your income exceeds the threshold for deducting IRA contributions, then converting them to a Roth IRA. If you're covered by an employer retirement plan, the IRS limits IRA deductibility.
A "backdoor Roth IRA" is a type of conversion that allows people with high incomes to fund a Roth despite IRS income limits. Basically, you put money you've already paid taxes on in a traditional IRA, then convert your contributed funds into a Roth IRA and you're done.
What happens to my Roth IRA if I move to another country? Nothing happens to your Roth IRA if you move abroad. The funds will still grow tax-free, and all the same required minimum distribution rules apply once you reach retirement age.
The story, based on confidential IRS data obtained by ProPublica, revealed that tech mogul Peter Thiel has the largest known Roth IRA, worth $5 billion as of 2019.
That is, when you eventually withdraw funds from your account, you'll be taxed on the net amount only. If you have a Roth IRA, the situation is a bit different. Withdrawals from Roth accounts are tax-free, so you won't benefit from the foreign taxes you paid.
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