Last Updated on 31st October 2024
Belgium has long been a highly desirable destination for professionals keen to live and work in the economic and political heart of Europe and for expats looking for a country with excellent living standards, superb infrastructure, and a unique culture and history.
While Belgium offers many advantages, it remains a fairly costly place to live compared with some of the other popular locations within the EU. This makes budgeting and tax planning essential for prospective retirees and expatriates of all ages.
This guide looks at the current average living costs, from purchasing a home to paying taxes as a non-citizen, and some of the cities and regions within Belgium that are among the most and least expensive in the country.
Average General Living Costs in Belgium
It is a generally accepted fact that living costs in Belgium aren’t particularly low by European standards, but the context of relocating from the UK often means you’ll find most outgoings and costs a little more affordable within the same budget.
The latest statistics indicate that living costs in Brussels, as Belgium’s capital, remain substantially lower than in London:
- Everyday living costs are 19.8% cheaper, excluding accommodation
- Rental prices are 56.5% lower than those in London
- Grocery prices are slightly lower at 0.9% beneath London averages
Local purchasing power in Brussels is also 3.2% higher than in London, which may relate to the fact that, although the average net salary in Brussels is slightly below that in the British capital, property prices and rental costs are typically more affordable.
Housing is where the big differences apply because owning or renting a home in Belgium, inside or outside the capital, is accessible. You’d need to budget around €5,333 (£4,440) per month to obtain the same standard of living as you’d expect for a £6,800 budget in London.
For instance, in Brussels, the cost of renting a central one-bedroom home is around €1,120 (£933) a month compared to £2,152 – a contrast of over 56%—and buying an apartment in the middle of Brussels will cost roughly €4,200 (£3,497) per square metre, compared to £13,783 in London.
Likewise, although utility costs in Belgium are considered high compared to other countries in Western Europe, they are still favourably lower than those in the UK, with an average monthly cost per household of €195 (£162), more than 34% lower than the nationwide average in Britain.
Budgeting for Belgian Tax Obligations as an Expatriate
One reason Belgium is considered costly is that the tax regime commands relatively high levies, balanced by high-quality public services. Given the standards of the public education system, only a tiny proportion of people living in Belgium choose to pay for private schooling, for example.
Tax revenues fund a world-class healthcare system, generous social security benefits, and a wide range of public services, although expats will usually still require private health insurance to comply with the terms of their visa or residency permit.
That said, understanding your tax position is crucial since it can have a direct impact on how far your income will stretch, especially if you are reliant on an overseas role or pension funds that are paid in an alternative currency.
Generally, you’ll be treated as a tax resident once you register with your local municipality and when Belgium is considered your primary home, although some expats remain non-residents, usually because they split their time between Belgium and the UK equally.
As a quick overview, the personal income tax rates in Belgium begin at 25% against earnings of up to €15,820, with the highest rate of 50% payable on incomes of €48,320 and above. However, there is an annual personal allowance of €10,160.
Taxpayers may also be allowed to reduce their income tax liability based on outgoings linked to mortgage payments, pension savings, and childcare costs.
Communal taxes levied by the local municipalities can vary from zero to 9% of your income tax obligations, with a 7% average. Non-residents pay a flat-rate 7% surcharge, which in some scenarios may apply to foreign income.
Elsewhere, investment income, interest and dividends attract a flat-rate 30% tax charge if paid by a Belgian institution, with a small exemption of up to €833 on dividends and an allowance of €1,020 on savings accounts.
Areas and Cities in Belgium at Either End of the Cost of Living Scale
Like every country, some parts of Belgium, particularly the major cities with more prestigious postcodes, properties, and conveniences, have higher general living expenses.
Brussels is the most expensive place to live in Belgium although housing costs remain considerably lower than in other capitals like Berlin or Amsterdam in neighbouring Germany and the Netherlands.
Other Belgian cities and regions such as Wallonia, Namur, Mons and Charleroi have the lowest monthly costs nationally, followed by Bruges, one of the smaller cities that remains a popular visitor destination with beautiful architecture and a good public transport system.
Antwerp and Leuven command a slightly higher monthly budget, although the cost of living remains lower than that in Brussels.
One of the benefits of living in Belgium as a small country is that many expats relocate to areas with lower expenses but that are still within travelling distance of the capital. For example, the estimated monthly costs for a household in Bruges are around 13% lower, but residents can be in Brussels in less than an hour by train.
Planning for Your Life Overseas in Belgium
The figures discussed here are indicative and based on averages. It’s always important to consider your own circumstances, expectations, income, and investment assets before any overseas relocation, factoring in other aspects like potential childcare or private education fees, how your income might change in an overseas country, and whether your tax residency position might impact your expendable income.
The best advice is to take as much time as necessary to create a detailed, future-proof budget, incorporating all of the outgoings and lifestyle choices you anticipate and ensuring your income, savings, assets, and investments will guarantee a comfortable life, and living standards, as an expatriate living in Belgium.
If you’d like more tailored advice or help evaluating your financial standing and making key decisions about pension transfers, restructuring investments, or transitioning your wealth, you are welcome to contact the Chase Buchanan Wealth Management local team in Brussels or our UK Administration Centre to arrange a convenient time to talk.
*Information correct as at October 2024