Dividends, (pension) savings and tax-free income: what's new in 2025

The annual indexation of the tax thresholds means your tax advantage will increase in 2025. Let's take a look how exactly this will happen.

Life became a little more expensive in 2024. The price of goods and services rose, which means the tax thresholds for 2025 are now also set to go up. As a private individual, your tax advantage will therefore increase slightly this year. More specifically, the ceilings will rise by 3.1%.

These changes apply to the 2025 income year and therefore relate to the tax return you will be submitting in 2026.

1. Pension savings: increased ceilings

Pension savings have become even more interesting, as you can pay in a little more this year.

• Under the 30% scheme, you can now pay in 1,050 euros (that's 30 euros more than last year). This means you can receive a tax reduction of up to 315 euros.
• Under the 25% scheme, the ceiling will increase by 40 euros to 1,350 euros, which equates to a tax reduction of up to 337.5 euros.

It is important to know that this money will not simply be given to you, i.e. your tax benefit will not be paid back into your account. It will be deducted from the income tax you have to pay. If you are not liable to pay any income tax (in the event of a very low income, for example), nothing can be deducted.

2. Long-term savings: a higher tax benefit

The maximum you can pay into long-term savings is increasing to 2,530 euros in 2025 (this is 80 euros more than last year). In the context of long-term savings, you can receive tax relief for the money you pay into certain life insurance policies. This is also the case for some loan repayments for a second home (purchased before 2024).

3. Dividends: a higher exempt amount

Dividends are profit distributions from companies to their shareholders. In principle, you pay 30% withholding tax on such dividends in Belgium.

Your bank or broker deducts this withholding tax and pays it to the tax authorities. However, you can recover some of this tax on your tax return. Dividend income that is exempt from withholding tax is increasing from 833 euros to 859 euros per person in 2025. At the maximum withholding tax rate of 30%, this means you can recover up to 257.70 euros.

Belgian and foreign dividends, cooperatives and companies with a social purpose are eligible for the exemption. Stock dividends ("in kind") are also exempt, provided that the same conditions are met.

Dividends obtained from legal constructs, investment funds and ETFs or bond coupons are not eligible.

Please note that this exemption does not happen automatically, so don't forget to enter it on your tax return (code 1437/2437)!

4. Savings accounts: higher exemption

The tax-exempt ceiling for savings interest is rising from 1,020 to 1,050 euros per person, which makes savings somewhat more attractive. Your bank will deduct 15% in withholding tax on savings interest that exceeds this limit.

This tax-free ceiling of 1,050 euros applies to most savings accounts in Belgium. They are regulated by the government. The tax is different for other savings products that are not regulated, time deposit accounts, for example. This exemption does not apply to them.

5. Other changes due to indexation

Indexation does not only affect savings and investments:

• More tax-free income: A larger part of your income will not be touched by personal income tax in 2025. This is due to the rising tax-free threshold.
• Tax advantage for the cost of care: Tax-deductible childcare costs are also increasing, giving families some extra breathing space.
• Indexation of the rateable value of property: Property tax is calculated based on the rateable value of a property, which is also indexed in Belgium. This means annual property tax is also increasing in 2025.

Here is an overview of all the changes.

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