What You Should Watch Out For ?

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Do you own an apartment abroad, receive foreign dividends, or hold a bank account outside Belgium? Then your personal income tax return becomes a bit more complex. The tax authorities are increasingly monitoring cross-border income, so filing a correct return is more important than ever.

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Foreign Real Estate: Report It on Time!

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Do you own a house or apartment abroad? You must declare it in your Belgian tax return. Belgium has concluded double taxation treaties with many countries, which usually means you’ll benefit from an exemption (subject to progressivity). If no treaty exists, the foreign tax paid can, under certain conditions, be partially deducted. Foreign real estate must be declared in the same way as Belgian property. In practical terms, this means you must report a cadastral income.

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Renting Out Your Holiday Home

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Do you rent out your foreign holiday home via Airbnb or another platform? This often qualifies as furnished rental, which also generates movable (i.e. furniture-related) income. Who gets to tax that income? That depends on the double taxation treaty and local law. So make sure to check which country has the right to tax — and remember that the Belgian tax authorities receive information from rental platforms under the DAC7 directive.​

Foreign Dividends: Mind the Exemption

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You can receive up to a certain amount of dividends tax-free. However, how you apply this exemption depends on your situation.

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If Belgian withholding tax (RV) has already been deducted, you can reclaim part of it using code 1437/2437. Be sure to first deduct any foreign with-holding tax before completing the code.

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If no Belgian withholding tax has yet been applied, you may immediately apply the exemption when declaring your dividend under code 1444/2444. Again, you must first subtract the foreign withholding tax. ​

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Foreign Bank Accounts and Life Insurance Policies

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Do you have a bank account abroad? You must report it once to the Central Point of Contact (CPC). Accounts held with foreign crypto platforms must also be reported! In addition, you must list the account every year in your tax return.

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Foreign life insurance policies, however, must be declared in your tax return but do not need to be reported to the CPC. 
 

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Legal Structures: STAK, SCI, and the Cayman Tax

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Do you hold a Dutch STAK or a French SCI? Then you must declare it under code 1077, and since tax year 2024, also via Annex 276CJC.

The Belgian tax administration treats these as legal constructions, meaning the income from these structures is considered to be directly attributed to the underlying holders. Be careful: several popular Luxembourg company forms are also targeted. 

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Dutch STAK: Commonly used for estate planning. Always report as a legal construction.

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French SCI: A popular company form for owning real estate in France. Whether it must be declared depends on the following two conditions:
– Are the SCI’s profits taxed in France?
– Does the Belgian shareholder pay at least 1% tax according to Belgian rules?
When the SCI rents out a property (e.g. a second home), the 1% rule is almost always met, meaning it will not qualify as a legal construction. If the SCI has opted for French corporate income tax, it is not a hybrid entity and therefore does not need to be reported in the personal income tax return.