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Belgium vs. Spain: Where Are Taxes Lower?
Find out where taxes are lower: In Belgium or Spain? Decide where to set up your next business base.
Choosing your next destination as a digital nomad is exciting, but between packing and flights, you always find yourself wondering which country will be best for your income. To resolve this, it is essential to compare taxes in Belgium with those in Spain, as the figures can vary significantly depending on your business model.
Understanding these tax differences is key. This way, you can organise finances and enjoy your trip with peace of mind. Spain, with vibrant culture and warm climate, competes with Belgium, Europe’s heart, known for stability and excellent chocolate. However, when saving money matters, the picture changes and legal details make the difference.
In this article, we break down taxes in both countries affecting your finances in 2026. We analyse VAT and corporate tax. As a result, you can choose your base without surprises at month-end. We want you confident, knowing exactly what to expect from each tax authority.
Preparing an international move involves more than finding a coworking space. It also requires checking if a country supports entrepreneurs or imposes heavier administration. So, join us and discover which destination suits your remote work or digital business profile better.
Taxes in Belgium vs. Spain for businesses or corporate entities
If you plan to establish a company or business base, the 2026 tax environment shows important nuances in both countries.
Belgium and Spain have adjusted policies to remain competitive. However, they differ in initial benefits and general rates. Therefore, consider not only tax percentages, but also expense deduction flexibility.
1. Corporate tax in Belgium vs Spain
Spain’s general corporate tax rate stands at 25%. However, new companies benefit from a reduced 15% rate during their first two profitable tax periods.
This creates a strong competitive advantage. As a result, you can reinvest more capital during crucial early stages.
Belgium, meanwhile, keeps a standard corporate tax rate of 25%. Unlike Spain, it aims for long-term stability, offering predictability for foreign investments.
While Spain focuses incentives on startups, Belgium’s system stands out for deductions.If your company develops software or patents, effective rates may drop well below 25%. This means that, even though the nominal rate is the same as in Spain, the final bill in Belgium may be lower for technology companies with a significant amount of intellectual property.
2. Dividend withholding and start-up benefits
When a company distributes profits among its shareholders, tax pressure returns.
Belgium applies a dividend withholding tax of 30%. However, regimes like “VVPR-bis” reduce it gradually to 15% if shares remain held long enough. Thus, Belgium rewards long-term shareholders.
In contrast, Spain applies around 19% withholding for residents, while non-resident rates depend on double taxation treaties.
For digital nomads under Spain’s Startup Law, specific benefits simplify bureaucracy. For example, tax debts can be deferred without guarantees during early years, improving cash flow.
3. Deductible expenses and administration
A commonly overlooked point involves which expenses each country allows before tax calculation.
Spain applies strict rules to representation and meal expenses, requiring detailed invoices. Belgium, although strict, offers more flexibility for home office-related expenses, ideal for remote workers.
Moreover, Belgium has heavily digitalised company formation by 2026. You can create a company remotely within days.
Spain has improved with PAE (Entrepreneurship Service Point, known by its Spanish acronym of Punto de Atención al Emprendedor) which enables companies to be set up online. However, the notary step remains mandatory, slightly delaying operations.
Tax comparison for companies in Belgium and Spain
| Tax / Concept | Spain | Belgium |
| General Rate (Corporate) | 25% | 25% |
| Reduced Rate (New companies) | 15% (first two profitable years) | 20% (under SME conditions) |
| Dividend Withholding | 19% (residents) | 30% (standard) |
| Innovation Incentives | R&D+i Deductions | Up to 85% deduction (Innovation Income Deduction) |
| Digitalisation of administrative procedures | High (via PAE and Cl@ve) | Very High (100% remote process) |
| Instalment Payments | Mandatory (April, October, December) | Optional (penalties may apply) |
Final tax comparison in Belgium vs. Spain for businesses
As you can see, although the general rate matches, Spain becomes more attractive for newcomers launching their first company thanks to the 15% rate.
On the other hand, if your business focuses purely on technology or software, Belgium’s deduction system can become a strong ally. Consequently, it may reduce that initial 25% significantly.
Looking for seamless connectivity in your next destination? With Holafly monthly plans, you can activate your eSIM within seconds using a QR code. Forget unexpected roaming charges while managing taxes or attending video calls from Brussels or Madrid.
Taxes in Belgium vs. Spain for individuals or natural persons
If you choose freelance work or operate as a remote employee, this section impacts your daily life most. Here, gross income becomes net income, revealing the true cost of living in each country.
1. VAT in Belgium vs. Spain
Value Added Tax (VAT) affects all consumers. However, as a professional, you must manage it carefully. In Spain, the standard VAT rate remains 21% for 2026. Meanwhile, reduced rates of 10% and 4% apply to essentials, books, or medicines.
Belgium also applies a 21% standard VAT rate. However, reduced rates stand at 6% and 12% for certain goods and services. Although they may appear similar in day-to-day use, the processing of international invoices for a digital nomad is generally more streamlined in the Belgian system, which is well-accustomed to large-scale intra-Community trade.
2. Personal income tax in Belgium vs. Spain Spain
This is where differences become clear. Spain’s Personal Income Tax (IRPF) follows a progressive system. Therefore, higher income means higher tax rates. In 2026, rates range from 19% up to 47% for income above €275,000 ($300,000).
Belgium, meanwhile, applies one of Europe’s highest labour tax burdens. Rates start at 25% and quickly reach 50% for income above €44,000 ($48,000). However, deductions for dependants or professional expenses can reduce the final amount.
However, Spain holds a strong advantage: the Beckham Law. This special regime allows foreign nationals who move to Spain for work to pay a flat rate of 24% on their income for the first six years, provided they have not resided in Spain in the last five years. Therefore, high-income digital nomads often benefit significantly in Spain.
3. Wealth tax: A penalty on savings?
Here, Spain stands out with its Wealth Tax. By 2026, if you live in Spain and your assets (properties, bank accounts, investments) exceed $760,000 USD (€700,000), you may have to pay between 0.2% and 3.5% per annum on the amount exceeding that threshold.
However, each Spanish region applies different rules. For instance, Madrid or Andalusia offer nearly 100% relief. Meanwhile, Catalonia or Valencia apply stricter thresholds.
Belgium does not apply a traditional wealth tax. Instead, it taxes securities accounts above €1,000,000 ($1,090,000). If your investments are below that figure, Belgium is much more favourable to savers than many regions in Spain.
4. Inheritance and gifts: Planning ahead
No one wants to think about this whilst travelling, but if you decide to buy a property or settle down, you should be aware that Belgium has quite strict rules.
Inheritance tax is a regional tax (Flanders, Wallonia or Brussels) and can be very high. For direct heirs (children or spouses), rates range from 3% to 30%, but if you want to leave something to a friend or a distant relative, the tax can be as high as 80% in some regions!
Spain also administers this tax at regional level. However, many regions offer up to 99% tax relief for close relatives, which means the tax is effectively negligible. However, as with the wealth tax, if you inherit property in a region without these benefits, the rates can rise to as high as 34%.
5. Belgium’s new capital gains tax
A key update for 2026 involves Belgium introducing a 10% capital gains tax on profits exceeding €10,000 ($10,900).
Previously, Belgium offered major advantages, as many stock gains remained tax-free.
In Spain, profits from the sale of cryptocurrencies, shares or property are taxed as capital gains at rates ranging from 19% to 28% in 2026. Although the rate in Belgium appears to be lower (10% vs 19%), in Spain there is no such tax-free allowance of €10,000 ($10,900), so you pay tax on every single euro of profit.
Tax comparison for individuals in Belgium and Spain
| Tax / Concept | Spain | Belgium |
| VAT (Standard) | 21% | 21% |
| VAT (reduced) | 10% and 4% | 12% and 6% |
| Income Tax (IT) | 19%–47% | 25%-50% |
| Wealth Tax | 0,2%-3,5% (varies by region) | 0% (except securities accounts > $1M) |
| Capital Gains | 19%-28% | 10% (threshold €10,000 / $10,900) |
| Inheritance and Gifts | 7,65%-34% (substantial family allowances) | 3%-80% (high for non-relatives) |
| Nomads Special Regime | Beckham Law (24% flat) | No equivalent regime as powerful |
Tax comparison for individuals in Belgium vs. Spain
As shown, although the VAT rates are the same, the difference lies in income and wealth tax. Whilst in Belgium you start by paying 25% from the lowest tax brackets, in Spain you have the option of taking advantage of schemes such as the Beckham Law, which is a real game-changer for high earners.
Meanwhile, investors with large portfolios may prefer Belgium. It avoids taxing net wealth, unlike some Spanish regions.
Final tax comparison in Belgium vs. Spain
Choosing between Belgium and Spain shouldn’t be taken lightly. While one country may seem more expensive, deductions or special regimes can shift the balance in your favour.
Therefore, as a conclusion, if you’re a digital nomad with high income, Spain usually becomes the smarter choice thanks to the Beckham Law. This regime avoids progressive taxation and applies a flat rate, something Belgium can’t easily match.
On the other hand, if you run a tech company with strong intellectual property or proprietary software, Belgium offers a deduction ecosystem that may significantly lower your effective tax rate.
Want to know more? Don’t miss our guides on taxes in Spain and Belgium. It will help you gain a better understanding of the tax systems in both countries. You can also check taxes for digital nomads in Spain if you plan remote work.
Ultimately, your decision depends on whether you prefer Spain’s immediate incentives and sunshine, or Belgium’s stability and innovation benefits. Either way, keep your documentation updated so taxes don’t limit your lifestyle.
Frequently asked questions about taxes in Spain and Belgium
Generally yes, especially if you qualify for the Beckham Law, which limits taxation to 24%. In Belgium, income brackets rise quickly, and you may pay 50% if you exceed €44,000 ($48,000) annually.
Both countries have digitalised processes by 2026. Belgium is slightly faster in formal setup, while Spain offers more guidance and physical support points (PAE).
Belgium has a competitive advantage in this area thanks to its ‘Innovation Income Deduction’, which allows the tax base to be reduced by up to 85% for income derived from patents or protected software. It suits companies with strong intellectual property.
Spain applies a Wealth Tax if assets exceed certain thresholds, usually from €700,000 ($760,000). Belgium does not apply this tax, but charges a levy on securities accounts above €1,000,000 ($1,090,000).
The general rate is 21% in both countries. The difference lies in the level of bureaucracy: Belgium is generally more efficient at refunding VAT to businesses, whereas in Spain the process can take a little longer, depending on the regional administration.
