In which country do you pay your taxes?

This is regulated in the double taxation agreement between Belgium and Germany.

You pay tax in Belgium on the income you receive in Belgium. There may be some exceptions in this respect. It is best to contact Team GWO about this.

The amount of tax you pay depends on your personal circumstances. Among other things, it depends on whether you have dependants.

For example, if your partner has a low (or no) income or you have dependent children, you will pay less tax.

The personal circumstances of cross-border workers are not always taken into account in Belgium. This depends on whether 75% or more of your income is taxed in Belgium. You are only entitled to the same tax benefits as a person living in Belgium if this is the case.

In which country do you have to file your tax return?

You must take care of this yourself by going to the responsible tax office in Belgium when you start work. You will then receive a form for your tax return in Belgium. You must check with the German tax office as to whether you also have to file a tax return there.

In Belgium, you declare your Belgian income as a non-resident. You declare your German
(net) income to assess the 75% standard. In Germany, you declare your world income and everything you received in Belgium in addition to any other German income. Your Belgian income is not taxed again in Germany.

You apply for your Belgian tax return via their website.

Is mortgage interest tax deductible?

Unlike in Germany, it is possible in Belgium to claim mortgage interest on your own home when doing your taxes. However, this “housing cheque” (woonbonus in Flanders, cheque habitat in Wallonia) does not apply automatically, but requires that 75% of your income is taxable in Belgium in that calendar year. Other important conditions must also be met, in particular the year in which you bought your home.

Net income

The expected net income can be calculated in Belgium using various online procedures. This can also take into account tax benefits depending on the family situation, such as dependent children.

In any case, it is important to file a tax return in Belgium.

Posting and special groups

If you are employed in Belgium by your German employer (or a temporary employment agency), you may be subject to different rules. For example, you may be subject to the tax and/or social security system of your country of residence.

This also applies to long-distance drivers in international transport.

We recommend that you contact the GrenzInfoPunkt or Team GWO in such circumstances.