Belgium–UK taxation: which country taxes what?

Who taxes what?

UK pensions: the 1 January 2013 cut-off

The 1987 Belgium–UK treaty, as amended by its 2009 protocol, taxes pensions in the paying country. A UK workplace or personal pension paid to a Belgian resident is therefore taxed in the UK, and Belgium exempts it with progression: it must be declared and raises the rate on your other Belgian income. The exception: if the scheme already paid out before 1 January 2013, all payments stay taxable only in Belgium. For the UK State Pension, the Belgian administration considers it taxable in the UK even when it started before 2013, a reading some advisers dispute.

Pension lump sums and transfers

The UK 25% tax-free lump sum from a post-2013 scheme is normally exempt in Belgium with progression. A lump sum or transfer that does not fit that framework can be taxed in Belgium at progressive rates up to 50%, plus the communal surcharge. Check the classification before drawing a large amount.

Working between Belgium and the UK

Salary is taxed where the work is physically done. A Belgian resident working in the UK is taxed in the UK on those days, and Belgium exempts that part with progression; days worked from home in Belgium stay taxable in Belgium. A short UK assignment of up to 183 days, paid by a non-UK employer, stays taxable in Belgium. Since Brexit, the EU–UK Trade and Cooperation Agreement keeps you in one social security system at a time, generally the country of work.

ISA, UK accounts and investments

An ISA has no special status in Belgium: dividends and interest earned inside it are taxable in Belgium at 30%, and from 2026 capital gains fall under the new 10% tax. UK bank and brokerage accounts must be reported in the Belgian return (code 1075) and to the Central Point of Contact of the National Bank of Belgium. UK brokers do not withhold Belgian tax, so the investor declares everything.

UK property

Rental income from a UK property is taxed in the UK and exempt with progression in Belgium. It must still be declared in the Belgian return.

Frequently asked questions

Is my UK pension taxed in Belgium?

If the scheme started paying after 1 January 2013, it is taxed in the UK and only counted for the rate in Belgium. If it was already paying before that date, it is taxed only in Belgium.

Is my UK State Pension taxed in Belgium or in the UK?

The Belgian administration treats it as taxable in the UK and exempt with progression in Belgium. For State Pensions that started before 2013, this reading is disputed.

Is my ISA tax-free if I live in Belgium?

No. Belgium does not recognise the ISA wrapper: dividends and interest are taxable at 30%, and gains from 2026 fall under the 10% capital gains tax.

Is the 25% tax-free lump sum taxed in Belgium?

From a scheme that started after 2013, it is normally exempt in Belgium but counted for the rate. Check the classification before a large withdrawal.

I work in the UK but live in Belgium: where do I pay tax?

In the UK for the days worked there, in Belgium for days worked from Belgium. You declare the UK salary in Belgium, where it is exempt but raises the rate on other income.

Do I need to declare my UK bank account in Belgium?

Yes: in the annual return (code 1075) and to the Central Point of Contact. Interest and dividends on it must be declared yourself.