Banks & Finances Belgium

In Belgium, there are several banks that actively work with foreigners and offer convenient conditions for opening accounts and conducting banking operations. Here are some of the most accommodating banks for expats:

BNP Paribas Fortis is the largest bank in Belgium and offers specialized services for expats. The bank provides the opportunity to open an account online even before arriving in Belgium and offers service packages that include a current account, credit cards, and access to mobile banking.

ING Belgium is another popular bank among expats, offering many services in English. The bank provides both free current accounts and premium packages with additional features. ING also offers special conditions for students and youth and provides access to online and mobile banking.

KBC (in Flanders) and CBC (in Wallonia) offer both basic free accounts and premium packages. KBC has repeatedly been recognized as one of the best banks in Belgium and is popular among entrepreneurs and expats.

N26 is a mobile bank that is gaining popularity among expats due to its low fees and ease of use. All transactions can be performed online through the mobile app, making this bank a great choice for those who prefer digital banking and travel frequently.

Revolut offers a wide range of services, including multi-currency accounts, low fees for international transfers, and the ability to manage finances through an app.

Opening a bank account in Belgium is an important step for any resident, including foreign nationals. The process of opening an account is quite simple and can be completed either online or by visiting a bank branch in person. Here are the main steps and documents you will need:

1. Choosing a bank:

   - First, choose a bank that meets your needs. Belgium offers both traditional banks (BNP Paribas Fortis, ING, KBC) and online banks (N26, Revolut). Make sure the bank offers services in your language and supports online banking if that's important for you.

2. Opening an account online or at a branch:

   - Most banks in Belgium offer the option to open an account online. For this, you need to complete an application on the bank's website and upload the necessary documents. Some banks require a personal visit to a branch, especially if you are opening an account for the first time in the country.

Required documents to open an account:

Identification: You will need to provide a passport or national ID card. For citizens of countries outside the European Union, a visa or residence permit may also be required.

Proof of residence: Banks usually require confirmation of your address in Belgium. This can be a rental agreement, utility bill, or any other document confirming your residence in the country.

Proof of income or employment: In some cases, the bank may request evidence of your income or employment, such as an employment contract or a letter from your employer. This is especially relevant if you want to open a premium account or obtain a credit card.

Additional documents: Depending on the bank, additional documents may be required, such as a tax number or proof of residence in another country if you maintain registration in another state.

Using ATMs

   - ATMs: ATMs are widely available in Belgium, where you can withdraw cash with foreign bank cards. Most ATMs accept Visa, MasterCard, Maestro, and other major international payment systems. You can find ATMs in banks, on streets, in shopping centers, and large stores.

Fees and charges

   - Fees for cash withdrawal: When withdrawing cash with a foreign card, fees may be charged by both your bank and the bank operating the ATM. These fees can vary, so it is advisable to check the conditions with your bank before your trip.

   - Currency Conversion: If your card is linked to an account in a currency other than euros, there may be an additional currency conversion fee. It’s also important to pay attention to the exchange rate offered by your bank, as it may differ from the market rate.

Usage Tips

   - Choosing the Right ATM: In major networks like BNP Paribas Fortis, ING, KBC, and Belfius, there are usually fewer issues with servicing international cards. However, it’s advisable to avoid ATMs in small banks or outside major cities as they might not accept some foreign cards.

   - No-Fee Option: Some cards, such as N26 or Revolut, may offer commission-free cash withdrawals within certain limits. 

Alternative Ways to Get Cash

   - Cashback at Stores: In some stores and supermarkets in Belgium, you can get cash at the checkout when paying by card. This can be a convenient way to avoid additional ATM fees.

   - Sending Money to Yourself via Online Services: If the cash withdrawal fee is too high, consider transferring funds through services like Western Union or TransferWise, and receiving cash at their service points.

Bank Transfers 

   - International Bank Transfers: This is one of the most common ways to send money abroad. Most Belgian banks offer international transfer services. To send funds, you’ll need to provide the recipient’s International Bank Code (BIC/SWIFT) and account number (IBAN).

   - Fees and Timelines: Transfer fees depend on the bank and destination country. Transfers usually take from 1 to 5 business days. Some banks may offer expedited transfers for an additional fee.

Online Money Transfer Services

   - Wise: Offers low fees and uses the real exchange rate without markups. It’s a popular choice for sending money to another country. You can make a transfer via the website or mobile app by providing recipient details and choosing payment method.

   - Revolut and N26: These mobile banks offer international transfers with minimal or no fees within certain limits. You can transfer money through the app by selecting the currency and entering recipient details.

Money Transfer Systems

   - Western Union: One of the most popular ways to quickly transfer money worldwide. The transfer can be made online or at a Western Union branch in Belgium. The recipient can collect the cash at any Western Union location in the destination country.

   - MoneyGram: Similar to Western Union, but may offer different rates or conditions. Suitable for those who need to send money quickly without opening a bank account.

Sending via Mobile Apps

   - PayPal: A popular service for transferring money from one account to another in different countries. Fees can be higher compared to other methods, but its convenience and speed make it in demand.

   - Revolut: Also allows instant money transfers to other Revolut users without a fee, which can be convenient if the recipient also uses this app.

Foreigners residing in Belgium can obtain a loan or mortgage, but terms and requirements may vary depending on their status, type of visa, and financial situation. Here are the key points to consider:

Types of Loans and Mortgages

   - Consumer Loans: Foreigners can apply for a consumer loan for personal needs, such as buying a car or home renovation. Conditions depend on your income, credit history, and status in the country.

   - Mortgage Loans: Mortgages for purchasing a home are also available to foreigners, but banks usually require a larger down payment (up to 30% of the property value) and may apply stricter creditworthiness criteria.

Requirements for Obtaining a Loan

   - Resident Status: Foreigners with a residence permit in Belgium have a better chance of obtaining a loan or mortgage. EU residents usually face less stringent requirements than non-EU citizens.

   - Income and Employment: To obtain a loan, banks require proof of stable income. Having a permanent employment contract or a long work history in Belgium increases your chances of approval.

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   - Credit History: Banks take into account your credit history both in Belgium and abroad. A clean credit history and the absence of debts are important factors when considering an application.

   - Down Payment: For a mortgage, banks may require a down payment of 20% to 30% of the property's value.

Documents for Application Submission

   - Passport or ID: This is the primary document verifying your identity.

   - Residence Permit: A document confirming your resident status in Belgium.

   - Income Confirmation: Employment contract, recent pay slips, and tax returns.

   - Credit History: In some cases, banks may request a credit bureau statement to evaluate your creditworthiness.

Recommendations

   - Bank Consultation: Before applying for a loan or mortgage, it's worth consulting with a bank to learn about specific requirements and possibilities.

   - Using Broker Services: Financial brokers can assist in finding and processing a loan, especially if you are not familiar with local regulations.

Banks Offering Loans to Foreigners: BNP Paribas Fortis; ING Belgium; KBC; Belfius.

Real Estate Payment

   - Bank Transfer: The most common way to pay for real estate in Belgium is a bank transfer. Typically, before finalizing the deal, the buyer transfers the necessary amount to the notary's account, who then forwards the money to the seller. This ensures the security of the transaction for both parties.

   - Mortgage: If you plan to take out a mortgage for purchasing real estate, the bank usually transfers the amount directly to the seller's account via the notary. The mortgage loan must be approved by the bank and all necessary documents completed before signing the deal.

   - Down Payment: Generally, upon signing a preliminary agreement, the buyer makes a deposit amounting to about 10% of the property's value. This deposit is also transferred to the notary's account.

Car Payment

   - Cash Payment: In some cases, especially when buying a used car from a private seller, cash payment is possible. However, Belgium has a limit on the use of cash for large purchases, amounting to 3000 euros. Thus, for larger sums, a bank transfer is used.

   - Bank Transfer: Car payment is most often done through a bank transfer. The buyer and seller exchange banking details, and the buyer transfers the money before taking possession of the car.

   - Car Loan: In case of insufficient funds, the buyer may take a car loan. In this case, the bank transfers the money directly to the dealer's or private seller’s account after the loan approval.

Using Cheques and Credit Cards

   - Cheques: Cheques are rarely used in Belgium, and their application for large purchases is not widespread. Moreover, bank cheques may include high fees.

   - Credit Cards: Payment with a credit card is possible, but it is usually limited to certain amounts, and sellers may charge an additional fee for using the card. This is a less popular way to pay for such large purchases as a car or real estate.

These payment methods for large purchases in Belgium ensure security and compliance with local laws. It's important to consult with a bank or financial advisor in advance to choose the most suitable payment method and consider all possible costs and fees.

In Belgium, there are numerous ways of saving and investment opportunities for citizens and residents. These options include traditional savings accounts, deposit accounts, investments in stocks, bonds, and funds.

Savings Accounts

   - Traditional Savings Accounts: Savings accounts offer fixed interest rates and are protected by government guarantees up to 100,000 euros. These accounts provide easy access to your funds, although interest rates may be relatively low.

   - Youth savings accounts: For young individuals (up to 18 or 25 years old, depending on the bank), savings accounts with higher interest rates are offered to encourage savings from an early age.

Deposit accounts

   - Term deposits: Term deposits allow depositors to place their funds for a specific period (from several months to several years) at a fixed interest rate. The interest rates on such deposits are usually higher than on regular savings accounts, but access to the funds is limited until the end of the deposit term.

   - Tax benefits: In some cases, the interest earned on term deposits may be partially exempt from taxation, depending on the amount of the deposit and the account's terms.

Investments in stocks and bonds

   - Stocks and the stock market: Investing in stocks offers potentially high returns but comes with high risks. In Belgium, both national and international stocks are available through brokers or investment platforms.

   - Bonds: Bonds are a more stable and less risky option compared to stocks. They provide a fixed income in the form of interest paid on bonds and can be governmental or corporate.

   - Investment funds: Investment funds allow investors to pool their capital to invest in a diversified portfolio of stocks, bonds, and other assets. This reduces the risk and requires less knowledge about specific investments.

Pension savings

   - Pension accounts: Pension savings accounts (3rd pillar pension) allow you to set aside money for retirement with tax advantages. The funds can be invested in various financial instruments, including stocks and bonds, depending on your risk appetite and preferences.

   - Personal pension plans: In addition to state pension plans, many banks and insurance companies offer private pension plans that allow investing in specific assets for retirement accumulation.

Real estate

   - Real estate investment: Purchasing real estate for rent or future resale is a popular investment method in Belgium. Real estate is considered a stable asset that can appreciate over time, providing rental income or capital gains.

It is important to consult with a financial advisor to select the most suitable savings and investment options for you.

Foreigners residing in Belgium are required to fulfill certain tax obligations, which depend on their residency status, sources of income, and the nature of their economic activity.

Tax residency status

   - Residents and non-residents: Tax obligations depend on whether the Belgian tax authorities consider you a tax resident. If you reside in Belgium for more than 183 days a year or your center of economic interest is in the country (e.g., work, family), you are likely to be considered a tax resident. Residents are required to declare and pay taxes on worldwide income, that is, income received both in Belgium and abroad.

   - Non-residents: If you reside in Belgium for less than 183 days and your primary income is outside the country, you are likely to be considered a non-resident and pay taxes only on income received in Belgium.

Income tax

   - Income tax rates: Income tax in Belgium is progressive and ranges from 25% to 50%, depending on the income level. Residents are obliged to annually file a tax return, which includes all sources of income, including salary, investments, real estate rent, and other types of income.

   - Tax deductions and benefits: In Belgium, there are various tax deductions and benefits, such as education expenses, mortgage interest, charity donations, and medical expenses, which can reduce the taxable base.

Social contributions

   - Social security contributions: All employees, including foreigners, are required to pay social security contributions, which include unemployment insurance, pension contributions, and health insurance. These contributions are automatically withheld from wages by the employer.

Real Estate Taxes

   - Property Tax: If you own real estate in Belgium, you are required to pay an annual property tax calculated based on the cadastral value of the property. This tax may vary depending on the region.

   - Registration Fee: When purchasing real estate, you must also pay a registration fee, which ranges from 6% to 12.5% depending on the region and transaction conditions.

Taxes on Investments and Capital

   - Capital Gains Tax: Belgium does not impose a capital gains tax on individuals if the capital gain is derived from the sale of shares or real estate used for personal purposes. However, professional traders and companies are required to pay capital gains tax.

   - Dividend Tax: Dividends are taxed at a rate of 30%, but there are mechanisms for obtaining tax credits or reducing this rate through tax treaties between countries.

Double Taxation

   - Double Taxation Avoidance Agreements: Belgium has agreements with several countries to avoid double taxation. This means that if you pay taxes on income in one country, you may receive a credit or exemption from paying similar taxes in another country.

It is recommended to consult with a tax advisor or accountant to ensure compliance with all regulations and to manage your tax obligations in Belgium effectively.

   In Belgium, tax declaration for foreigners may vary depending on their residency status, sources of income, and the presence of assets in the country and abroad. 

Determining Status: Tax Resident / Non-Resident.

   - Tax Residents are required to declare all worldwide income, meaning income received both in Belgium and abroad. If there are agreements to avoid double taxation between Belgium and the country of income origin, you can avoid double taxation.

   - Non-Residents declare and pay taxes only on income received in Belgium. Non-residents may also benefit from tax advantages if they have a significant portion of their income in Belgium.

Tax Declaration Process

   - Submission Deadlines: In Belgium, the tax declaration is filed annually. The deadline for paper declarations is typically at the end of June, while electronic declarations are due at the end of September or early October.

   - Electronic Filing: The declaration can be submitted through the Tax-on-Web online system, available in Dutch, French, and German. To access the system, you will need an electronic identification card (eID) or an access code obtainable from the tax authority.

   - Completing the Declaration: The declaration must include all sources of income, including salaries, rental income, investments, and income from abroad. It should also indicate any applicable tax deductions and credits.

Tax Deductions and Credits

   - Belgium offers various tax deductions that can reduce the taxable base. These include expenses for children, mortgage interest, medical expenses, and charitable donations. These deductions may be available to both residents and non-residents if they meet specific conditions.

Payments and Refunds

   - If, after tax calculation, it is found that you have overpaid, a refund will be issued. In the case of tax underpayment, additional payments will be required. Refunds or additional payments are usually completed within a few months after filing the declaration.

It is advisable to use the services of a tax advisor or accountant to ensure the correct completion of the declaration and the utilization of all available deductions and benefits.

In Belgium, there are several rules and benefits for self-employed persons and freelancers that facilitate entrepreneurial activity. These rules pertain to both tax obligations and social security.

Registration and Taxes

   - Registration: All self-employed persons and freelancers are required to register with the Central Enterprise Bank and choose the legal form of their activity (e.g., natural person, sole proprietorship, or company). It is also necessary to register with the local chamber of commerce and obtain a VAT number if required for your type of activity.

   - Taxes: Self-employed individuals are required to pay income tax on income received from their activities. Tax rates are progressive and depend on the level of income. They are also required to pay VAT (usually 21%) on goods and services if their income exceeds a certain threshold. However, there are VAT exemptions for certain types of activities or if the annual income is below a certain amount.

Social Security

   - Social Contributions: All self-employed individuals are required to pay social contributions, which cover pensions, health insurance, and other social benefits. Contributions are calculated based on quarterly income and amount to approximately 20.5% of net income. Contributions can be adjusted depending on income, and there are minimum and maximum contribution amounts.

   - Social Benefits: Self-employed persons are entitled to pension payments, medical assistance, and other social services such as temporary disability and maternity leave. They can also receive unemployment benefits in case of cessation of activities under certain conditions.

Tax Benefits and Deductions

   - Professional Expenses: Self-employed individuals can deduct various professional expenses from their taxable income, such as office rent, transportation costs, equipment purchases, and advertising expenses. These deductions can significantly reduce taxable income.

   - Start-up Incentives: New entrepreneurs can take advantage of incentives and subsidies at the initial stage of their activities. In Belgium, there are support programs for startups, including exemption from paying social contributions in the first few years of activity and access to preferential loans.

   - VAT Reduction for Small Businesses: Small enterprises with an annual turnover below a certain amount (around 25,000 euros) have the possibility of VAT exemption, which reduces administrative burden.

Additional Benefits

   - Pension Savings: Self-employed individuals can also participate in additional pension schemes (3rd pension pillar), which allow for setting aside funds for retirement with tax benefits.

   - Subsidies and Grants: Depending on the region, various subsidies and grants for support of entrepreneurship are available in Belgium, including support programs for innovation and environmentally sustainable projects.

These rules and benefits make entrepreneurial activity in Belgium more accessible and attractive for self-employed individuals and freelancers. It is recommended to consult with an accountant or tax advisor for optimal tax planning and to take advantage of all available benefits.