The tax approach to foreign capital has changed significantly in recent years. International data exchange, compliance by banks ... As a result, more and more foreign capital (foreign bank accounts and life insurance contracts) are known to the Belgian tax authorities. Transactions of foreign capital are, therefore, closely monitored. A fact you may have noticed. But how do you comply with Belgian law? What can you do to avoid tax and criminal sanctions? The solution: tax regularisation, but that legislation expires at the end of 2023. Nelissen Grade will advise you.
Repatriating foreign money
Transferring foreign money to a Belgian bank account is not so easy in practice. Transactions from foreign accounts prove to be a hot issue for banks. If you do not comply, capital can be blocked, not accepted or returned to the original account.
The cause? Tax transparency has been in the spotlight over the past decade. European member states exchanged data among themselves, banking secrecy was relaxed and cash payments were restricted ... Banks are also obliged to investigate the origin of foreign capital. You must be able to prove that you have paid the necessary taxes.
“There was a prevailing perception that investing abroad was more successful. Easy and tax-free. But this is not the case: you are also taxed on your foreign income. And some taxpayers are now bearing the consequences of this.”– Karen Niesten, NG partner
Want to legally transfer foreign money to Belgium?
Tax regularisation as a remedy for your (foreign) capital
Belgian banks have a reporting obligation that requires them to pass on data to competent authorities. If you do not follow the tax rules, you risk being prosecuted for money laundering. And that can have far-reaching consequences: from forfeiture to fines. That is why our lawyers are happy to meet with you.
There are solutions available, such as tax regularisation. The legislator created a legal framework within which you can regularise your capital. If you fail to meet your tax obligations, you can pay a one-off 40% levy to rectify this. In exchange for this tax regularisation, you will be exempt from criminal prosecution.
“Tax regularisation is like a confession You reveal the origin of your capital and whether you have paid taxes. If not, doing penance is necessary through the payment of a regularisation tax.”– Karen Niesten, NG partner
Nelissen Grade will assist you with the tax rules and regulations.
Law firm Nelissen Grade assists you with the analysis of your foreign capital and the regularisation of foreign money
The legislation for tax regularisation expires this year. To avoid incurring criminal penalties afterwards, you can make use of this regularisation until the end of 2023. Our lawyers will guide you through every step of the tax regularisation of your foreign capital.
#1 Investigate. We investigate the origin of your capital. Since Belgian banks only have a retention obligation of (at least) 10 years, we also dive into foreign and other archives.#2 Compliance. Our tax lawyers carry out a risk analysis and a compliance investigation of your Belgian or foreign capital.
#3 Regularisation. Nelissen Grade assists you in applying for your tax regularisation. This will straighten out your situation legally and fiscally.
#4 Repatriation. With more than 20 years of experience in this field, our lawyers know the tax laws inside out. We assist you in repatriating your life insurance contracts or foreign investments.
Law firm Nelissen Grade is a specialist in tax law.