There is a new Belgium-France double tax treaty which is expected to enter into force on January 1, 2026.
Key Provisions
- Employment Income: The 183-day rule for tax residency will now be measured over any rolling 12-month period rather than just the calendar year.
- Investment Income: The treaty removes the foreign tax credit for dividends, likely increasing the Belgian tax burden, but eliminates the 15% withholding tax on interest.
- Capital Gains: Gains from selling shares in “real estate companies” (where over 50% of assets are property) will now be taxable in the state where the property is located.
- Clarifications: Exclusive taxation for directors is now limited strictly to board members, and income for French students under VIE contracts is only taxable in Belgium if a Belgian entity bears the cost.
