How to determine your tax residence?

What is tax residence?

Tax residence is a factual concept that determines in which country you are considered a resident for tax purposes.

It defines whether you are taxed in Belgium (or another country) on your worldwide income.

Why is this concept important?

In a context of international mobility, it is common to live and/or work in different countries. The question of tax residence then becomes essential in order to avoid double taxation or errors in tax returns.

Is domicile or place of residence sufficient to determine tax residence?

No, being domiciled at an address is not sufficient to establish your tax residence. This depends on your actual personal circumstances.

What does Belgian law say about this?

According to Article 3 of the Income Tax Code (CIR), residents of the Kingdom are subject to personal income tax.

This includes natural persons who have their domicile or the seat of their fortune in Belgium.

Please note: there are two important rules concerning tax residence in Belgium:

• Registration in the National Register: If you are registered in the Belgian National Register, you are presumed to be a tax resident in Belgium, which means that you are, in principle, taxable there. However, you can prove otherwise, for example if you actually live and work abroad.
• Married or legally cohabiting persons: If you are married or legally cohabiting, your tax residence is determined by the location of your joint household. This presumption is irrevocable: you cannot contest it.

How is tax residence determined in an international context?

If your tax residence is likely to be established in several countries due to an international situation (for example, if you work in Belgium but reside in France), the Organisation for Economic Co-operation and Development (‘OECD’) provides a series of hierarchical criteria for determining in which country you are considered a tax resident. These criteria are included in the double taxation agreements (‘DTAs’) between the various countries.

In the case of an international situation, we invite you to consult the DTA in force between Belgium and the other country concerned in order to verify the rules applicable to your case.

These conventions are publicly available at the following address: https://www.minfin.fgov.be/myminfin-web/pages/public/fisconet/document/3232bda5-33df-4fdd-b3b2-c7ada30b7da1.

What should you do if you are unsure about your situation?

Each case is unique and must be analysed according to your personal and professional circumstances. If in doubt, it is advisable to consult a tax specialist or international tax advisor.

To this end, it is important to note that the above information is provided for informational and general purposes only. It does not constitute tax advice or personalised consultation.