In the media, Belgium is often cited as one of the most taxed countries in the world. Yet many investors know that it is possible to legally and easily avoid taxation on many investments.
The Belgian paradox.
Belgium is one of the densest European countries with a high standard of living and a high-performance social security and health care system. It is also one of the most developed countries in terms of infrastructure and economic versatility. Despite the closure of some important industrial sectors in the early 2000s, Belgium remains competitive largely due to two factors:
- A geographical position in the heart of Europe.
- A highly educated and well-trained population.
However, Belgium has often been singled out for allowing wealthy personalities and large companies to benefit from advantageous tax conditions. Ironically, Belgium is one of the most heavily taxed countries in the world...
The strategy of the ostrich.
Rather than taking a position on taxation on capital gains or on non-taxation, once again Belgium is playing the card of lack of clarity. The Belgian tax authorities had to take preventive measures to frame the taxation of cryptocurrencies, all without political validation. Today only large traders and cryptocurrency miners can be taxed. All individuals who do not have so-called professional activities are therefore not subject to any tax. This rule suits many Belgians but also the political power that can boast of taxing the intensive speculators, all without touching the small and medium-sized private investors.
Belgium and France, arm wrestling.
While Belgium and France are very friendly countries, not to say brother countries, Belgium is running counter to France which does not like Paris. Brussels is already and for a long time home to French tax exiles who are fleeing taxes on the big fortunes too high. While Paris applies a strict policy towards cryptocurrencies, the Belgians are more distant with the banking lobby despite a strong presence of the latter in its company. This behaviour has once again the effect of attracting French individuals who on its soil have made a fortune in investing cryptocurrencies.
A liberal and socialist vision.
Flexible decisions for the compromise king country. If Belgium is a country that seems discreet internationally, don’t be mistaken, the small country is often at the heart of international intrigues. It is an important pivot in terms of diplomacy and it is in this same country that the headquarters of the European institutions and NATO are located. The ability of the small country to take advantage of a neutral and sometimes ambiguous position is felt even in its taxation. This is indeed a national mentality which has the particularity of being common to all its regions and communities.