How do US expats live with high income taxes in Belgium?

Question

I have been presented with an opportunity by my company (based in the US) to move to their Brussels office. I have read on several websites that the income tax is insanely high in Belgium and was wondering if I can do anything to offset it. Are there any tax breaks associated with being an expat? If so, how do I exercise them? If not, how do people normally live when more than 50% of their income goes to the government? I currently live in CT, where cost of living is relatively inexpensive, and I am only taxed 25%.

Thanks for your quick responses. I'm not sure if I qualify as a non-resident or a regular expat working FT in Belgium. I understand the latter has to pay the same taxes as a Belgian resident.

Answer 1

If you're an American citizen temporarily residing in Belgium, you may qualify to be taxed at different rate. Certainly something to carefully check out first. Taxation provides excellent medical care--including home visits in middle of night--and some other things you won't have to pay for. Should be exempt from their Social Security. It's a lovely little country and a great place to spend a year or two. The people are great linguists and it's so convenient to all of Europe. Your potential employer should be able to provide some info on taxes.

Answer 2

Belgium has the highest overall tax rate of any western industrialized country. The USA has the lowest. You would be entitled to foreign income exclusion and a credit for any Belgian income tax paid.

Answer 3

Providing you meet a certain number of conditions, you can use the special 'non-resident' status in Belgium. ING will give you all the relevant information on the advantages of this status, such as exemption from securities tax and stock market tax in Belgium.

http://www.ing.be/private/topics.jsp?topic=expats&docid=025620_EN&menopt=the|exp|bel|dai

Answer 4

Ask your company about a 'tax equalization' package. Its complicated, but the basic idea is that you only pay taxes in an amount roughly equal to what you would pay if you never left home. It helps a lot, but it makes income tax return preparation a real ***** for a long time.