How are US pensions, brokerage accounts and IRAs taxed in Belgium for income year 2025 (assessment year 2026)?
How are US pensions, brokerage accounts and IRAs taxed in Belgium? Key 2025 rules on reporting, TOB, dividends, capital gains and US treaty treatment.
A Belgian tax resident who is also a US citizen generally has to report worldwide income in Belgium while continuing to file in the United States. A US state disability pension may be taxable only in the United States, depending on its legal classification. Foreign dividends and interest are generally taxable in Belgium at 30%, while capital gains realised in 2025 may remain exempt if they fall within the normal management of private assets. Foreign-account reporting, stock exchange tax and the future taxation of IRA distributions must also be considered. The correct treatment depends on the individual situation.
The figures below are illustrative. The main return discussed concerns income year 2025 and assessment year 2026. The new Belgian capital-gains tax applies from income year 2026 and assessment year 2027.
Why US citizens living in Belgium face two tax systems
A person who establishes their permanent home in Belgium will normally become a Belgian tax resident. Belgian residents must, in principle, report their worldwide income, including income received from the United States.
US citizens generally remain subject to the US tax system even when living permanently abroad. This commonly results in two parallel annual filing obligations:
a Belgian personal income tax return;
a US federal income tax return;
potentially additional US information returns concerning foreign accounts and assets.
The Belgium–United States double taxation treaty determines which country has the primary right to tax particular types of income. Relief from double taxation may then be granted through an exemption, a foreign tax credit or another treaty mechanism.
The fact that income is reported in both countries does not necessarily mean that the same income will ultimately be taxed twice.
Filing deadlines for income year 2025
For assessment year 2026, the general Belgian filing deadlines were:
30 June 2026 for paper returns;
15 July 2026 for standard online returns through MyMinfin;
16 October 2026 for qualifying online returns containing certain categories of specific income.
The extended deadline does not automatically apply to every taxpayer who receives foreign dividends, interest or holds a foreign brokerage account. The official specific-income categories include, among other situations, foreign professional income and certain foreign items declared for the first time.
A taxpayer who received a proposed simplified return and wanted to rely on the specific-income deadline generally had to notify the administration in advance, preferably before 15 July 2026. The applicable deadline should therefore be checked in MyMinfin or with the competent tax office.
Where a return is incomplete or late, the appropriate general response is to prepare the missing information promptly and contact the tax office rather than waiting for an automatic correction.
How a US state disability pension may be taxed
The taxation of a US disability pension depends less on its label than on its precise legal basis.
Three treaty classifications may be relevant.
Payment under social security or similar legislation
Payments made by the United States under its social security or similar legislation are generally taxable only in the United States.
A disability payment created under a statutory social-protection, workers’ compensation or similar public scheme may fall within this category.
Pension linked to previous government employment
A pension paid in consideration of previous employment by a US state, public authority or government agency may fall under the treaty’s government-service provisions.
Such a pension is generally taxable only in the United States. A different result may apply where the recipient is both resident in and a national of Belgium.
Ordinary private pension
An ordinary private pension is generally taxable in the recipient’s country of residence. For a Belgian resident, this may give Belgium the primary taxing right.
The pension award letter, governing statute, plan description and annual benefit statement are therefore essential. The fact that the payment comes from a state agency is relevant, but it does not by itself settle the treaty classification.
What does exemption with progression reserve mean?
Where the treaty gives the United States the exclusive right to tax a pension, Belgium will generally exempt the pension.
The pension must nevertheless normally be reported in the Belgian return. Belgium may take the exempt amount into account when determining:
the tax rate applicable to other income taxed progressively;
and, in certain cases, the municipal surcharge.
This mechanism is known as an exemption with progression reserve.
Its practical effect may be limited where the taxpayer has little or no other progressively taxed Belgian income. Reporting remains mandatory even where no additional Belgian tax is ultimately due on the pension itself.
How US dividends and interest are taxed in Belgium
Income received through a US brokerage account is generally not subject to Belgian withholding tax at source. A Belgian resident must therefore usually declare the income personally.
Foreign dividends and interest are generally subject to the Belgian 30% movable-income tax rate.
The taxable amount is generally based on the income actually received after any foreign tax withheld at source. The US brokerage statement or Form 1099 should distinguish dividends, interest and sales transactions.
For income year 2025, the first €833 of qualifying dividends per taxpayer is exempt. Where no Belgian withholding tax was deducted, the exempt portion of foreign dividends does not have to be entered in the Belgian return. Any qualifying dividends above the exemption must still be declared.
The same dividends and interest may also remain reportable in the United States because of the investor’s US citizenship. Belgian tax paid may potentially be taken into account through the US foreign-tax-credit system, subject to the applicable US rules and treaty provisions.
Are US brokerage capital gains taxable for 2025?
For income year 2025, capital gains realised as part of the normal management of private assets were generally exempt from Belgian personal income tax.
For example, an investor might have sold securities for approximately $18,000 that had originally cost about $20,000. The resulting illustrative loss would not create Belgian tax, but it would generally not be deductible either.
A loss realised before 31 December 2025 cannot normally be carried forward and deducted from gains falling under the new capital-gains regime.
The exemption for 2025 is not unconditional. Gains arising from speculative transactions, abnormal private-asset management or professional investment activity may receive a different treatment. The facts and frequency of the transactions remain important.
What changed for financial capital gains from 2026?
From 1 January 2026, Belgium introduced a 10% tax on certain realised capital gains on financial assets held outside a professional activity.
The regime covers Belgian and foreign assets, including:
shares and bonds;
investment funds and ETFs;
certain insurance products;
currencies and investment gold;
crypto-assets.
For assessment year 2027, the first €10,000 of annual gains per person is exempt.
Up to €1,000 of unused exemption may be carried forward each year, subject to the statutory conditions. After five years, the combined basic exemption and carry-forward may reach a maximum of €15,000 per person.
The 31 December 2025 reference value
Historical gains accumulated before the reform are generally protected.
For assets acquired before 2026, the value on 31 December 2025 serves as an important reference for calculating the taxable post-2025 gain. In some circumstances, the original acquisition value may remain relevant where it is higher, but historical losses cannot be converted into deductible losses under the new regime.
Investors should therefore retain a broker statement showing:
every position held on 31 December 2025;
the market value of each position on that date;
the original acquisition information;
subsequent sale prices and dates.
Where the broker is located abroad, Belgian tax may not be withheld automatically. The taxpayer may therefore have to calculate and declare the gain personally, including the conversion of foreign-currency acquisition and sale values into euros.
Does the annual tax on securities accounts apply?
The Belgian annual tax on securities accounts applies only where the average value of the account reaches at least €1,000,000.
A foreign brokerage account worth a few hundred thousand euros would therefore generally remain below this threshold.
This is separate from:
income tax on dividends and interest;
the capital-gains tax;
and the tax on stock exchange transactions.
Must a US brokerage account be declared in Belgium?
A Belgian resident who holds an account abroad generally has two separate reporting obligations.
Registration with the Central Point of Contact
The account must normally be reported once to the Central Point of Contact for accounts and financial contracts, or CPC, of the National Bank of Belgium.
This includes foreign securities accounts used to hold shares, bonds and similar investments.
Annual declaration in the Belgian tax return
The existence of the foreign account must also be confirmed each year in box XIII, section A of the Belgian personal income tax return.
This obligation applies even if:
the account produced no taxable income;
no money was withdrawn;
the account was open for only part of the year;
or the taxpayer received a proposed simplified return.
A proposed simplified return that omits a foreign account should not simply be accepted without modification.
Belgium receives financial-account information from foreign jurisdictions through automatic exchange systems, including FATCA and CRS mechanisms. A spontaneous declaration or correction is therefore generally preferable to waiting for the administration to identify an omission.
How the Belgian stock exchange tax applies to a US broker
The tax on stock exchange transactions, commonly called the TOB, is separate from income tax and capital-gains tax.
A Belgian resident who buys or sells securities through a foreign professional intermediary is generally responsible for declaring and paying the TOB unless the foreign broker has already handled the Belgian tax.
The applicable rate depends on the instrument and may be:
0.12%;
0.35%;
1.32%.
The tax may apply to both acquisitions and disposals.
Where the investor is personally liable, the declaration and payment are due no later than the last working day of the second month following the month of the transaction.
For example, a transaction completed in July may generally be declared and paid by the last working day of September.
An investor who has used a US broker since becoming Belgian resident may therefore need to review historical purchases and sales as well as establish a recurring procedure for future trades.
Is a traditional IRA taxed in Belgium before withdrawal?
As long as no distribution is made, the internal growth of a traditional US Individual Retirement Account, or IRA, does not generally create an immediate Belgian taxable event.
The important tax question usually arises when money is withdrawn.
Under the Belgium–United States treaty, ordinary pension distributions are generally taxable in the recipient’s country of residence. For a Belgian resident, Belgium may therefore have the primary taxing right over an IRA distribution.
However, Belgian domestic-law classification remains crucial.
Recent Belgian advance-ruling practice has accepted that distributions from certain US IRAs may be exempt from Belgian income tax where, among other factors:
the IRA resembles an individually funded savings arrangement;
the contributions did not generate a Belgian tax advantage;
and the characteristics of the account support treatment as a private savings vehicle rather than taxable pension income.
The rulings of 14 November 2023, no. 2023.0712, and 13 January 2026, no. 2025.0899, are relevant examples.
The more recent ruling also suggests that a previous tax-neutral rollover from an employer-sponsored 401(k) does not necessarily prevent favourable treatment. The characteristics of the IRA at the time of distribution may be decisive.
These rulings apply only to the taxpayers and facts submitted to the Ruling Office. They do not create an automatic exemption for every IRA.
Before taking a distribution, the following should be examined:
how the IRA was funded;
whether employer-plan assets were rolled over;
whether contributions received any Belgian tax benefit;
the legal and contractual structure of the account;
whether withdrawals will be periodic or made as a lump sum;
whether an advance ruling is appropriate.
A US citizen may remain taxable in the United States on a traditional IRA distribution even where Belgium grants an exemption.
How should an incomplete earlier Belgian return be corrected?
A person who became Belgian resident during an earlier year may have received a proposed simplified return that omitted foreign income and foreign accounts.
From the date Belgian tax residence began, the return should generally have included:
reportable foreign pension income;
foreign dividends and interest;
the existence of foreign bank and securities accounts;
and any other worldwide income arising during the Belgian-residence period.
The appropriate correction procedure may depend on whether:
the proposed simplified return was merely accepted;
an assessment notice has already been issued;
the objection period remains open;
or a voluntary rectification must be requested.
A spontaneous correction is normally preferable to waiting for the administration to compare the return with automatically exchanged foreign-account data.
Belgian law also contains a right-to-error framework for certain first mistakes made in good faith. This may limit a tax increase in eligible cases, but it does not remove the obligation to file a complete return or correct an omission promptly.
How the US filing obligations remain relevant
Becoming a Belgian tax resident does not normally end a US citizen’s US tax obligations.
The person may still have to:
file Form 1040 annually;
coordinate US foreign tax credits with Belgian taxes;
submit an FBAR for qualifying foreign accounts;
and potentially file Form 8938, depending on the applicable asset thresholds.
The FBAR generally applies where the combined maximum value of foreign financial accounts exceeds $10,000 at any time during the calendar year.
Its normal deadline is 15 April, with an automatic extension to 15 October. No separate extension request is needed. The FBAR is filed electronically through FinCEN’s BSA E-Filing System and is not attached to Form 1040.
Belgian bank accounts are foreign accounts from the US perspective and may therefore count toward the FBAR threshold.
Which records should be retained?
A cross-border taxpayer with a US pension, brokerage account and IRA should generally preserve:
the pension award letter and governing plan documents;
annual pension statements;
Forms 1099 showing dividends, interest and securities sales;
complete brokerage transaction histories;
proof of foreign tax withheld;
the valuation of every investment position on 31 December 2025;
documents showing the acquisition cost of investments;
IRA statements and contribution records;
401(k)-to-IRA rollover documents;
prior Belgian returns and proposed simplified returns;
Belgian assessment notices;
evidence of CPC account registration;
TOB calculations, declarations and payment confirmations.
These documents determine not only what must be reported, but also whether treaty exemptions, foreign tax credits or favourable IRA treatment can be supported.
Frequently asked questions
Do US citizens living in Belgium have to declare their US income in Belgium?
Yes. A Belgian tax resident must generally report worldwide income, even where the income is paid in the United States. The treaty then determines whether Belgium may tax the income or must exempt it.
Is a US state disability pension automatically exempt in Belgium?
No. The result depends on whether the payment qualifies as social security, a government-service pension or an ordinary private pension. The pension award and governing legislation must be reviewed.
Are capital gains from a US brokerage account taxable for income year 2025?
Capital gains realised in 2025 were generally exempt where they formed part of the normal management of private assets. Speculative, abnormal or professional transactions may be treated differently, and private losses were generally not deductible.
What changed for investments sold from 1 January 2026?
Certain realised gains on financial assets became subject to a normal 10% tax, with an annual exemption of €10,000 per person and a possible limited carry-forward. The value on 31 December 2025 is an important reference for assets acquired earlier.
Must an inactive US brokerage account still be declared?
Yes. The account must generally be registered with the CPC and mentioned annually in the Belgian return, even if it generated no income or transactions.
Is an IRA taxable in Belgium if no withdrawal is made?
Normally, no Belgian taxable event arises merely because investments grow inside an untouched IRA. The Belgian tax analysis becomes important when a distribution is planned.
Sources
SPF Finances — Foreign accounts (declaration to the CPC and in the tax return) — https://fin.belgium.be/en/private-individuals/international/foreign-income-accounts/accounts
ITAA — Personal income tax return 2026: deadlines, novelties and right to error — https://www.blogitaa.be/fr/2026/04/29/declaration-ipp-2026-delais-nouveautes-et-droit-a-lerreur-ce-que-vos-clients-doivent-savoir/
IRS — Convention between the United States and Belgium for the avoidance of double taxation (2006) — https://www.irs.gov/pub/irs-trty/belgiumtt06.pdf
SPF Finances — Exemption of dividends — https://fin.belgium.be/fr/particuliers/avantages-fiscaux/exoneration-dividendes
SPF Finances — Tax on stock exchange transactions (TOB) — https://fin.belgium.be/fr/particuliers/international/revenus-comptes-etrangers/taxe-operations-bourse
SPF Finances — Capital gains tax — https://fin.belgium.be/fr/particuliers/declaration-impot/revenus/taxe-plus-values
BDO Belgium — Capital gains tax on financial assets in 2026: complete guide — https://www.bdo.be/en-gb/insights/news-alerts/2026/capital-gains-tax-on-financial-assets-in-2026-complete-guide
Taxpatria — Belgian Ruling Office reconfirms favorable tax treatment for U.S. IRA distributions — https://www.taxpatria.be/belgian-ruling-office-reconfirms-favorable-tax-treatment-for-u-s-ira-distributions/
Taxpatria — Belgian Ruling Office confirms that IRA distributions can be tax-exempt — https://www.taxpatria.be/belgian-ruling-office-confirms-that-ira-distributions-can-be-tax-exempt/
IRS — Report of Foreign Bank and Financial Accounts (FBAR) — https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar
This article presents a general framework and does not constitute a personalised tax opinion. Tax rules and thresholds may change from year to year, and the correct treatment depends on the taxpayer’s precise residence history, pension documents, investment transactions and account structure.
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