Declaring or not my income earned during my Working Holiday Visa in Belgium: everything you need to know

If you are a young Belgian working abroad, for example in Australia, Canada, or New Zealand, on a Working Holiday Visa (WHV), you may be wondering whether you need to declare your foreign earnings in Belgium. Many young WHV hesitate, fearing double taxation or complicated tax procedures. This article will explain how to proceed and what you need to know to remain compliant with Belgian tax authorities.

Do I need to declare my income earned on a Working Holiday Visa if I work abroad?

If you are on a Working Holiday Visa in Australia, Canada, or New Zealand, you may be wondering whether you need to declare your foreign earnings in Belgium. The general rule is that you are not required to declare this income in Belgium, provided you are a tax resident in the country where you work. This means that if you work in Australia, for example, and your income is subject to Australian tax, you will not be taxed twice.

Belgium and these countries have agreements to avoid double taxation , which allows you to avoid paying taxes on your income in both Australia, Canada, or New Zealand, and Belgium. However, it is important to report your situation to the Belgian Federal Public Service Finance (FPS Finance) to avoid any confusion.

What steps do I need to take to report my income earned abroad?

Although your income is not subject to Belgian tax, you must still inform the Belgian Federal Public Service Finance (FPS Finance) of your stay abroad and the opening of your bank account under your Working Holiday Visa . This step is essential to prevent the Belgian tax authorities from considering you as having tax obligations in Belgium.

You generally just need to fill out an online form or reply to the letter sent to you by the Belgian Federal Public Service Finance (FPS Finance) regarding the opening of your foreign bank account. This notification informs the Belgian tax authorities that you do not need to declare your foreign income, as it is already subject to local tax.

How to avoid double taxation between Australia, Canada, New Zealand and Belgium?

Young Belgians going on Working Holiday Visas to countries like Australia, Canada, or New Zealand don't have to worry about double taxation thanks to the tax treaties signed between these countries and Belgium. These agreements prevent you from paying taxes both in your host country and in Belgium.

These tax treaties determine the country where you are considered a tax resident. If you are a tax resident in the country where you work (such as Australia), your income will only be subject to local tax, and not Belgian tax. However, you must ensure you complete all the necessary administrative formalities to avoid any misunderstandings with the Belgian tax authorities.

When and how do I declare my income in Belgium?

Generally, you are not required to declare your Australian, Canadian, or New Zealand income in Belgium, as long as it is correctly declared and taxed in the country where you work. You only need to inform the Belgian Federal Public Service Finance (SPF Finances) that you are on a Working Holiday Visa in another country and that you have opened a bank account under this program.

The Federal Public Service Finance may contact you to confirm this information, particularly regarding your foreign bank account. Once these formalities are completed, you will no longer have to worry about double taxation.

Conclusion

In summary, if you are a young Belgian working in Australia, Canada, or New Zealand on a Working Holiday Visa , you do not have to declare your foreign income in Belgium, thanks to tax treaties that prevent double taxation . You simply need to inform the Belgian Federal Public Service Finance (FPS Finance) of your situation and notify them of the opening of your foreign bank account. By following these steps, you will avoid any tax complications.