Living in Belgium and working in France: how is your salary taxed?

Double taxation treaty between Belgium and France

Belgium and France have concluded a double taxation treaty. This treaty determines which country has the right to tax your income and aims to prevent your salary from being taxed twice.

In most cases, the following principle applies: your salary is taxed in the country where you work, which is France.

Taxes and social security contributions in France

If you work as an employee in France, you fall under the French tax and social security system. This means:

• You pay social security contributions in France (pension, health insurance, unemployment, etc.);

• Your salary is subject to French income tax;

• You must file an annual French tax return.

Withholding tax (Retenue à la source – RAS)

Your French employer withholds tax directly from your salary each month through the withholding tax system (“retenue à la source” – RAS). This system is comparable to Belgian payroll withholding tax. For French residents, it is commonly referred to as PAS (prélèvement à la source).

Do you still need to file a Belgian tax return?

Yes. As a Belgian tax resident, you remain subject to Belgian tax filing obligations, even though your salary is taxed in France. You must therefore declare your French professional income in your Belgian tax return.

Exemption with progression (progression reserve)

Thanks to the tax treaty, Belgium does not tax your French salary again, but the income is taken into account to determine the applicable tax rate.

In practice:

• Belgium does not directly tax your French salary;

• The income is included to determine the tax rate applied to your other Belgian income, such as rental income or income from a second job;

• This may result in a higher tax bracket for your Belgian income.

Other important points for cross-border workers

Social security
If you work full-time in France, you are generally affiliated with the French social security system, contributing to pension, healthcare and unemployment schemes.

Health insurance in Belgium
Do you live in Belgium but work in France? You are entitled to medical care in Belgium via the S1 form:

• to be requested from the French social security authorities;

• to be submitted to your Belgian health insurance fund.

Pension rights
You build up pension rights in France for as long as you work there. If you have also worked in Belgium (or do so later), you will receive pension benefits from both countries upon retirement, with each country paying its respective share.