Spaargids.beYou do not pay withholding tax on an initial tranche of 1,020 euros in savings interest per taxpayer. What does that mean in concrete terms? What about a joint account? And what should you do with the rest of your money? Spaargids.be offers answers.
By Tom Dejonghe, in collaboration with Spaargids.be
24-04-24, 11:35
Latest update:
11:53
Source:
Spaargids.be
How does the exempt amount work?
You may also have a Belgian regulated savings account. In concrete terms, this means that the account must legally comply with a number of strict rules. And, it is important to know, that you do not have to pay withholding tax on a first tranche of savings interest.
This tax-exempt interest amount increased to 1,020 euros this year, after being 980 euros for four years. This concerns an amount per taxpayer. In other words: if the account is in two names, the exempt amount doubles to 2,040 euros. You only pay 15 percent withholding tax on the extra interest.
Example: on the ING Savings Account you currently receive 2.25 percent interest, good for 1,020 euros in interest with 45,333 euros in your account for a year.
Compare savings accounts in your search for the highest return? Our comparator will help you get started.
And what about the ‘excess’ of savings?
What do you do with the money on which you would pay withholding tax – if any, of course? There is certainly no point in transferring the money to another savings account in your name, because the tax-exempt maximum applies per taxpayer, not per account. So for the total interest per year on all savings accounts in your name (including interest on accounts in the name of any minor children).
Can you do without your money for a while without taking any risks? Then you can, for example, put your remaining money on a term account to make. Your money is not available during the term, but you will receive your invested capital back with predetermined interest. Compare term accounts here with terms between 3 months and 10 years.
Finally, you can also invest through a branch21 savings insurance, if you can spare your money for several years – with a guaranteed basic interest rate and no 30 percent withholding tax if you invest for more than eight years or take out additional death cover. You can compare such savings insurance policies quickly and easily on this page.
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