Last Updated on 24th September 2025
Making decisions about the best ways to transfer, retain or restructure your retirement wealth is a big aspect of expat financial planning, especially if you’re expecting to relocate imminently or are moving to Belgium to enjoy a peaceful retirement.
However, in too many instances, we speak with expats who haven’t realised how contrasts in pension taxation could impact their wealth, or who have inadvertently been exposed to a substantial 25% transfer tax, eroding their pension value, which they could have avoided.
In this article, we’ll share some general insights into why pension management is so important for foreign national expats settling down in Belgium, while noting that the best strategies will always depend on your personal circumstances, the nature of your pension assets, and your expected retirement date.
Can I Claim a UK Pension From Belgium as an Expat Resident?
There is no rule that obligates expats to transfer their pension funds, and you may wish to leave a pension scheme in the UK, claiming from overseas. Although this isn’t typically the most tax-efficient option, and can come with issues around currency fluctuations, there are some scenarios where this may be advisable, such as:
- If you are moving to Belgium temporarily, or for a few years, but have every intention of returning to the UK before or on retirement.
- You hold high-value pension funds with guaranteed benefits, such as a defined benefit scheme or a final salary pension fund and would lose that protection if you were to transfer it.
Even if this ends up being the best route for you, it is still important that you understand the taxes payable on your pension as a Belgian resident.
Additionally, you will need to know how your access to tax reliefs and allowances will change to be able to make informed decisions – rather than assuming a pension will remain accessible and of its current forecast value when you come to depend on that income.
It is also worth noting that Belgian expat residents continue to be entitled to the UK State Pension, as in most overseas countries.
British citizens living in the European Union (EU) receive the annual uplift according to the ‘triple lock’ system and can nominate their preferred bank account, although you must notify the International Pension Centre of your move to ensure you continue to receive this.
How Is Pension Income Taxed in Belgium?
Your tax position will depend on whether you become a tax resident, which normally applies when you live primarily in Belgium, or are a non-resident, and split your time between other countries or spend the majority of the year in the UK.
The Belgian tax system means your obligations will differ depending on whether you draw down lump-sum payments or receive monthly pension benefits, as follows:
- Belgian tax residents who receive monthly pension incomes are taxed according to the personal income tax brackets, which start at 25% on earnings up to €16,320, and extend to a 50% rate on incomes over €49,840.
- Lump-sum drawdowns are subject to flat rate taxation, which starts at 10% – the exact rate will depend on your age and the type of pension fund you hold.
- Alongside federal taxes set by the Belgian government, the local municipalities can apply communal taxes, and these may be up to 9%, depending on where you live.
- Tax residents are taxed on all worldwide income, excluding situations where a pension is taxed at source in another country, and where a double tax treaty agreement is in place.
- Non-residents only pay Belgian tax on pension funds based in the country. Still, they might need to submit a tax residency certificate if they are also paying tax on the same income elsewhere to ensure they aren’t being taxed twice.
Legal residents are entitled to an annual allowance, which ensures lower incomes are not taxable – this is set at €10,910 currently, with further exemptions that apply to taxpayers with dependent children.
How Can I Transfer a UK-Based Pension Fund to Belgium?
Pension transfers are a complex area, which is why seeking advice about the most beneficial ways to manage your retirement wealth is strongly advisable. There are several options, the most suitable of which will depend on some of the many factors and variables we’ve already discussed.
Many expats opt for a transfer to a Recognised Overseas Pension Scheme, or ROPS, a fund that has been approved by HMRC and can accept UK pension transfers. At the time of writing, there are, though, only three recognised ROPS funds within Belgium, which means the breadth of choice is very limited.
Foreign nationals can consider transferring to another ROPS in a different EU country, with a large number of schemes in locations like Malta, for example. However, there is a likelihood that this transaction would result in paying the 25% Overseas Transfer Charge. This tax applies to international pension transfers made outside of the UK to a country where the holder is not a resident.
However, if you hold several smaller pension funds or have one fund valued at below £1.073 million, you can apply the Overseas Transfer Allowance of the same value. In this situation, transferring pensions individually, provided the total value is below the threshold, could be the best way to consolidate your pensions without a large tax deduction.
Alternatives such as a self-invested personal pension (SIPP) may also be appropriate, as a way to consolidate multiple pensions, access tax-free lump sums from age 55, and choose between UK-based and international SIPPs.
We recommend expats seek independent advice about these and other reinvestment options, because multiple other taxation and financial considerations will influence the right pension transfer decisions.
Consult the Belgian Expat Wealth Management Experts
Chase Buchanan Private Wealth Management’s Belgian team is always on hand to provide more personalised guidance, whether you’re unsure how or whether to transfer a UK pension fund, want to know how leaving your pension as-is would affect your tax status, or need clear, unbiased advice you can trust.
You are welcome to book a call with our local team in Brussels, arrange a time to visit us at our offices, or download our free guides to Retirement in Europe and Belgian Taxation for more information
All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.
*Information correct as at September 2025
