Belgian Dividend Exemption Frozen at €833: What Investors Need to Know (2025-2030)

Executive Summary

The Belgian government has frozen the dividend tax exemption at €833 for assessment years 2025 through 2030 (income years 2024 through 2029). This means the exemption will not increase with inflation during this period, resulting in an estimated €50 to €75 loss per investor compared to normal indexation.

Maximum refund: €249.90 (30% of €833) per taxpayer per year through 2030.

For investors who hold individual stocks and receive dividends, this is a significant development. While the exemption itself remains in place, the freeze effectively reduces its real value over time as inflation erodes purchasing power.

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What Changed?

Under normal circumstances, the dividend exemption amount is adjusted annually based on inflation (a process known as indexation). This ensures the exemption keeps pace with the cost of living.

However, as part of budget austerity measures, the Belgian government decided to freeze several tax benefits at their 2024 levels. The dividend exemption is one of these frozen benefits.

The legal basis for this freeze is Article 178 §3 of the Income Tax Code 1992 (WIB92), as amended by the Programmawet van 18 juli 2025.

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Historical Exemption Amounts

The dividend exemption has evolved over the years. Below is the full history, including the frozen period:

As you can see, the exemption remained at €800 for several years before jumping to €833 in assessment year 2025. Without the freeze, normal indexation would have continued to increase this amount by approximately €10 to €15 per year.

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Who Is Affected?

The freeze affects all Belgian tax residents who receive dividend income from individual stocks. This includes:

• Dividends from Belgian companies (e.g., AB InBev, KBC, UCB, Ageas)
• Dividends from foreign companies (e.g., Apple, Shell, Nestlé)
• Dividends from shares in your own company (e.g., management company dividends)

Who Is NOT Affected?

Important: Dividends from ETFs, mutual funds (SICAV/BEVEK), or other collective investment vehicles do not qualify for this exemption and are therefore not affected by the freeze.

If you exclusively invest in accumulating ETFs, this freeze has no impact on your tax situation. The exemption only applies to dividends from individual stocks.

Important: Gross vs Net Calculation

The exemption base differs depending on the dividend's origin:

• Belgian dividends: Exemption applies to the gross dividend amount
• Foreign dividends: Exemption applies to the net dividend amount (gross minus foreign withholding tax)

Example:

• Belgian stock: €100 gross dividend → €100 counts toward the €833 exemption
• US stock: €100 gross with 15% US withholding → €85 net counts toward the €833 exemption

This is an important distinction when calculating whether you have reached the exemption limit.

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How to Claim the Exemption

Claiming your dividend exemption refund is straightforward. Follow these steps:

Step 1: Gather Your Dividend Statements

Collect all dividend statements from your broker(s) for the income year. You need:

• Total gross dividends received from individual stocks
• Total Belgian withholding tax (roerende voorheffing) paid on those dividends

Step 2: Calculate the Refundable Amount

The maximum refundable amount is 30% of €833 = €249.90.

If your total dividends are less than €833, the refund is 30% of your actual dividend amount.

Example:

• Dividends of €500: refund = 30% x €500 = €150.00
• Dividends of €833 or more: refund = 30% x €833 = €249.90

Step 3: Enter the Amounts in Your Tax Return

Enter the withholding tax amount in codes 1437/2437 in your annual tax return (Tax-on-web or paper form).

Step 4: Receive Your Refund

The tax authorities will calculate your refund automatically and include it in your tax assessment notice (aanslagbiljet). The refund is applied against your total tax liability.

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Special Rules for Married Couples

Each taxpayer has their own €833 exemption. This means a married couple or legal cohabitants can potentially claim up to €499.80 in total refunds (€249.90 x 2).

Community of Property (Wettelijk stelsel)

Under the default Belgian matrimonial regime (community of property), dividends from jointly owned shares are split 50/50 between spouses. Each spouse then applies their own €833 exemption to their share.

Example: A couple jointly owns shares that pay €2,000 in dividends. Each spouse declares €1,000, and each claims the maximum €249.90 refund. Total refund: €499.80.

Separation of Property (Scheiding van goederen)

Under separation of property, each spouse declares only dividends from shares held in their own name. The €833 exemption applies to each spouse individually.

Tip: If one spouse has more than €833 in dividends and the other has less, there is no possibility to transfer the unused portion. Each exemption is personal and non-transferable.

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Practical Examples

Example 1: Single Investor

Sarah is a single investor who received €1,200 in dividends from her portfolio of Belgian and European stocks in 2025.

• Total dividends: €1,200
• Withholding tax paid (30%): €360
• Exemption: €833
• Refund: 30% x €833 = €249.90

Sarah enters €249.90 in code 1437 of her tax return and receives this amount back.

Example 2: Married Couple Maximizing the Exemption

Marc and Julie are married under community of property. Their joint portfolio paid €3,000 in dividends in 2025.

• Each spouse declares: €1,500
• Each spouse's exemption: €833
• Each spouse's refund: 30% x €833 = €249.90
• Total refund: €249.90 x 2 = €499.80

Example 3: Investor Below the Threshold

Thomas received only €400 in dividends in 2025.

• Total dividends: €400
• Withholding tax paid (30%): €120
• Exemption used: €400 (below €833 limit)
• Refund: 30% x €400 = €120.00

Thomas gets all his withholding tax back because his dividends are below the exemption threshold.

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Multiple Brokers and Foreign Dividends

The €833 Limit Applies Across All Brokers

If you have accounts with multiple brokers (e.g., Bolero and Interactive Brokers), the €833 exemption applies to your combined dividend income from all brokers. You cannot claim €833 per broker.

Foreign Withholding Tax Is Separate

Foreign withholding tax (e.g., 15% US WHT under the treaty, 26.375% German WHT) is a separate matter. The Belgian dividend exemption only concerns the Belgian withholding tax (roerende voorheffing) of 30%.

Foreign WHT is generally not refundable through your Belgian tax return, although it may be partially offset through the FBB (forfaitaire buitenlandse belasting) credit in certain cases.

Declaring Foreign Broker Dividends

If your foreign broker does not withhold Belgian WHT, you must:

1. Declare the dividends in codes 1444/2444 (income without Belgian WHT)
2. Declare foreign accounts in code 1075
3. The tax authorities will calculate both the tax due and the exemption refund

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Official Legislative Sources

The freeze of the dividend exemption is based on the following legal texts:

• Wetboek Inkomstenbelastingen 1992 (WIB92), Article 21, first paragraph, 14°: establishes the dividend exemption
• WIB92, Article 178 §3: governs the indexation mechanism and the freeze
• Programmawet van 18 juli 2025: the law that enacted the freeze through assessment year 2030

Confirmations from Trusted Sources

This freeze has been confirmed by multiple authoritative sources:

• Liantis (social secretariat and tax advisory)
• Wikifin (FSMA's financial education platform)
• KBC/Bolero (Belgian bank and broker documentation)

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Tax Return Codes Reference

Here is a quick reference of the most important tax return codes related to dividend taxation:

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What Happens After 2030?

Starting from assessment year 2031 (income year 2030), the dividend exemption is expected to resume normal indexation. The exact amount will depend on the consumer price index at that time.

If inflation averages 2% to 3% per year during the freeze period, the exemption could jump from €833 to approximately €900 to €950 once indexation resumes. However, this depends on future legislative decisions and the government may choose to extend the freeze.

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How Belgian Tax Calculator Helps

Our platform automatically tracks your dividend income across all brokers and calculates your optimal exemption claim. Key features:

• Automatic dividend tracking from imported broker data
• Multi-broker aggregation to ensure you stay within the €833 limit
• Pre-filled tax return codes so you know exactly what to enter
• Married couple optimization to maximize your combined refund

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This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax advisor for advice tailored to your situation.