Will you emigrate to Spain Or do you reside there permanently? Then your tax residence shifts. For pensioners, the crucial question is: where is my Belgian pension taxed? The answer depends directly on the nature of your pension: private sector pensions are taxed in Spain, while state pensions generally remain taxed in Belgium.
Below you can read exactly how the rules of the double taxation treaty work between Belgium and Spain and which pitfalls to avoid.
1. Will my private sector pension be taxed in Spain?
Yes. If you have had a career in the private sector, your statutory pension is exclusively taxable in Spain once you are a tax resident there.
Under the double taxation treaty, Belgium is not allowed to withhold tax in this case. The Belgian Pension Service will give you a gross pension pay out. You are then obliged to declare this income in Spain through the annual personal income tax (IRPF or Impuesto sobre la Renta de las Personas Físicas).
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Important: You pay taxes in Spain according to progressive rates. These may differ from Belgian rates depending on the amount of your pension.
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Action point: Apply for the exemption from Belgian withholding tax in good time so that you do not pay twice and have to arrange complex refunds later.
2. What about state pensions (Statutory Officer)?
No, state pensions remain taxable in Belgium in most cases, even if you live permanently in Spain.
This is an important exception in international tax law (the public principle). Spanish tax authorities may not tax this particular pension income. However, this means not That you can conceal this income in Spain.
The principle of 'Exemption with Progression Reservation'
Although Spain does not tax your state pension directly, you must declare it. Spain uses this amount to pay the average tax rate determine which is applicable to your other income (such as interest, dividends or property income).
Expert Insight: "Many retired civil servants are mistaken about this. They think their pension is 'invisible' to the Spanish tax authorities. Failure to declare correctly can lead to fines and retrospective assessments, despite the pension itself being taxed in Belgium."
3. The pitfall of supplementary pension (Group Insurance/IPT)
Note: Paying out supplementary pension capital while you are tax resident in Spain often results in a significantly higher tax burden than in Belgium.
In Belgium, you often benefit from favourable rates (e.g. 10%) when paying out at retirement age. Spain generally does not have this favourable regime for capital payments and taxes this as movable income or employment income, depending on the exact policy and benefit form.
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Strategic advice: Consider having your supplementary pension capital paid out before you move your tax residency to Spain. Timing is essential in your estate planning.
4. Regional disparities and wealth taxation
Spanish personal income tax consists of a state part and a regional part. The final tax bill depends on the Comunidad Autónoma (region) where you live.
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Differences: Rates in Andalusia differ from those in the region of Valencia or Catalonia.
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Family situation: Your family situation and possible disability are taken into account, which may entitle you to specific tax-free sums.
5. Practical steps when moving house
To ensure the continuity of your pension payment, you need to follow the records correctly.
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Reporting requirement: Enter your move minimum two months before departure to the Federal Pension Office.
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Life certificate: As a resident in Spain, the Pension Service will periodically ask you to fill in a 'life certificate', have it stamped by the local Spanish authorities (municipality) and send it back.
Frequently asked questions (FAQ)
Where do I pay tax on my pension when I move to Spain? It depends on the source. A private sector pension is taxed in Spain. A state pension usually remains taxed in Belgium, but must be declared in Spain for calculating the tax rate on other income.
Should I have my group insurance paid out before emigrating to Spain? From a tax point of view, this is often strongly recommended. Spain often taxes pension capital payments more heavily than the favourable rate you enjoy in Belgium. Always consult a tax expert beforehand to analyse your specific policy.
Will I be double taxed on my pension? No, thanks to the double taxation treaty between Belgium and Spain, double taxation is avoided. You pay either in Belgium or Spain, depending on the type of pension. However, you must take administrative steps to apply for exemptions correctly.
Does my move affect the amount of my gross pension? No, your accrued pension rights will be preserved. The Belgian government continues to pay out the pension. Only the tax deductions (net result) change due to the change of your tax residence.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
