Corporate taxation in Belgium: 2026 guide
25% standard rate, 20% reduced SME rate and its conditions, VAT 21/12/6%, registration duties per region, withholding tax and the 2026 tax changes.
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Q: How are companies taxed in Belgium?
Corporate income tax is 25%, with a reduced 20% rate on the first €100,000 for SMEs meeting the conditions (including a director's remuneration of at least €50,000). VAT is 21% (reduced rates 12% and 6%), and property registration duties depend on the region: 12% in Flanders, 12.5% in Wallonia and Brussels, with reduced rates for the own home. Since 2026, a 10% tax on individuals' capital gains and a 5% tax on DBI-BEVEK funds have been added.
What is the corporate income tax rate?
Belgian resident companies pay corporate income tax at the standard rate of 25% on their worldwide profits, subject to tax treaties. That rate places Belgium in the European mid-range; the system's attractiveness rests more on its special regimes (DBI, innovation income deduction) than on the headline rate.
Returns are filed electronically with the FPS Finance, based on the annual accounts filed with the National Bank of Belgium.
How does the reduced 20% SME rate work?
SMEs benefit from a reduced rate of 20% on the first €100,000 of taxable profit. The main conditions:
- Qualify as a small company under the Code of Companies and Associations (size criteria);
- Pay at least one individual company director a remuneration of at least €50,000 (amount applicable since assessment year 2025), with benefits in kind capped at 20% of that remuneration;
- Not be a financial or holding company beyond the statutory thresholds.
Above €100,000, profit is taxed at the standard 25% rate. The remuneration condition turns the director's pay policy into a tax parameter in its own right — a trade-off to model with an accountant, since the remuneration is itself subject to personal income tax and social contributions.
What are the VAT rates?
- 21% — standard rate, applicable by default to supplies of goods and services;
- 12% — reduced rate, notably for restaurant services;
- 6% — reduced rate for essential goods, books and certain construction works;
- Exemptions — notably financial and medical services.
Any company carrying on an economic activity must register for VAT (number in the format BE 0XXX.XXX.XXX). The OSS regime simplifies cross-border B2C sales in the EU. See our page VAT registration in Belgium.
What registration duties apply per region?
Registration duties on property purchases are regionalised — the rate depends on where the property is located, not on the buyer's seat:
| Comparison | Flanders | Wallonia | Brussels |
|---|---|---|---|
| Standard rate | 12% | 12.5% | 12.5% |
| Reduced rate (sole own home) | 2% | 3% | €200,000 abatement (main residence, max €600,000) |
| 2026 conditions | Tightened on 1 January 2026: full ownership only, registration within 3 years, occupation min. 1 year | Sole own home (15% for undeveloped land) | Region-specific abatement conditions |
Dividends: what withholding tax?
- 30% — standard withholding tax on distributed dividends;
- 15% — possible under conditions for SMEs through the VVPR-bis regime;
- 0% — dividends paid to an EU parent company (participation ≥ 10%, one-year holding, parent-subsidiary directive);
- 5–15% — usual treaty rates thanks to the network of more than 95 tax treaties.
Which favourable regimes remain?
- DBI regime: 100% deduction of dividends received from subsidiaries (10% participation or €2.5M, one-year holding, normally taxed subsidiary) and exemption of capital gains on shares under the same conditions — the core of the Belgian holding regime, detailed in our guide The holding company in Belgium (DBI).
- Innovation income deduction: 85% of net patent and software income deductible (effective rate of about 3.75%).
- SME tax shelter: tax reduction for investors in young companies.
Abolished regime: the notional interest deduction has not existed since tax year 2024. Older content still presents it as an advantage of the Belgian system — that is no longer the case.
What changes in 2026?
Section reviewed on 25 July 2026.
- 10% tax on individuals' capital gains (1 January 2026): capital gains realised by individuals on their financial assets are now taxed at 10% — a new parameter for shareholders and exit planning.
- 5% tax on DBI-BEVEK funds (1 January 2026): DBI SICAVs used for treasury management see their net return reduced.
- DBI reform (tax year 2026): the access route through the €2.5 million acquisition value now requires the participation to be booked as a financial fixed asset.
- Flanders — registration duties (1 January 2026): conditions for the reduced 2% rate tightened (full ownership only, registration within 3 years, occupation for at least 1 year).
What filing and compliance obligations does a company have?
Beyond the rates themselves, the compliance calendar drives a Belgian company's workload. The main recurring obligations:
- Annual accounts — filed each year with the National Bank of Belgium; they form the basis of the tax return.
- Corporate tax return — filed electronically with the FPS Finance.
- VAT returns — monthly or quarterly depending on the regime, plus intra-Community listings where applicable.
- UBO register — registration and updating of ultimate beneficial owners.
- Advance tax payments — companies that prepay too little face a tax surcharge; plan the cash calendar with your accountant.
A missed deadline usually costs more than the fees that proper follow-up would have required — factor support costs into the overall tax picture.
Setting up your company: tax from day one
The choice of form (SRL or SA), the level of contributions and the director's remuneration policy determine access to the reduced 20% rate and the VVPR-bis regime. These choices arise before incorporation — our guide Setting up an SRL in Belgium covers the steps and the financial plan, and our page Company formation describes how a lawyer can assist.
Official sources
References: FPS Finance (corporate tax, VAT, withholding tax), Belgian Official Gazette / Justel (legal texts) and the regional tax administrations for registration duties. Information verified as at the date at the top of the page — legislation changes, confirm your situation with a qualified professional.
Frequently Asked Questions
The standard corporate income tax rate is 25%. SMEs benefit from a reduced 20% rate on the first €100,000 of profits, subject to conditions — notably qualifying as a small company under the companies code and paying at least one individual director a remuneration of at least €50,000 (benefits in kind capped at 20% of that remuneration).
The standard rate is 21%. A reduced 12% rate applies notably to restaurant services, and a 6% rate to essential goods, books and certain construction works. Some transactions are exempt (financial and medical services).
Flanders: 12% (reduced 2% rate for the sole own home — tightened since 1 January 2026: full ownership only, registration within 3 years, occupation for at least 1 year). Wallonia: 12.5% (reduced 3% rate for the sole own home). Brussels: 12.5% with a possible €200,000 abatement for the main residence. New-build property is subject to 21% VAT instead of registration duties.
Since 1 January 2026: a 10% tax on capital gains realised by individuals on their financial assets, and a 5% tax on DBI-BEVEK funds. From tax year 2026, the DBI "€2.5 million" route requires the participation to be booked as a financial fixed asset. In Flanders, the conditions for the reduced 2% registration duty were tightened.
The standard withholding tax is 30%. It can drop to 15% under conditions (the VVPR-bis regime for SMEs), and dividends to an EU parent company (participation ≥ 10%, one-year holding) are exempt under the parent-subsidiary directive. Tax treaties often reduce the rate to 5-15%.
No. The notional interest deduction (deduction for risk capital) was abolished from tax year 2024. The favourable regimes still in force include the DBI regime (dividends), the innovation income deduction (85% of patent and software income) and the SME tax shelter.
Ready to take action?
This guide is an informative starting point. For legal advice tailored to your situation, we can connect you with an independent lawyer registered with a Belgian bar.