{"id":4782,"date":"2026-10-08T09:00:20","date_gmt":"2026-10-08T07:00:20","guid":{"rendered":"https:\/\/balmontconseil.com\/blog\/convention-france-belgique-signee-en-2021-toujours-bloquee\/"},"modified":"2026-10-08T09:00:20","modified_gmt":"2026-10-08T07:00:20","slug":"convention-france-belgique-signee-en-2021-toujours-bloquee","status":"publish","type":"post","link":"https:\/\/balmontconseil.com\/en\/blog\/convention-france-belgique-signee-en-2021-toujours-bloquee\/","title":{"rendered":"France-Belgium Convention: signed in 2021, still blocked"},"content":{"rendered":"
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In summary\u2026<\/h2>\n

Franco-Belgian tax relations are governed by the convention of March 10, 1964<\/b>. A completely new agreement was signed on November 9, 2021<\/b> to replace it. It does not yet apply: both states must complete their ratification.<\/p>\n

The most significant change is neither a rate nor a threshold. It is the method for eliminating double taxation<\/b> : moving from exemption with a progressive reservation to a tax credit does not change who taxes, but it does change what you pay in total.<\/p>\n

This is one of the few areas where the switchover date is known in advance. Some operations benefit from being stopped under the current system, others from waiting. The mistake lies in not making a choice.<\/p>\n<\/div>\n

You have lived in Brussels for twelve years and have kept two apartments in Lyon. Or you returned to France after a career in Belgium and receive a pension from there. In both cases, your situation is based on a 1964 law that no one around you has consulted, and which is about to be replaced.<\/p>\n

1. Two texts, only one in force<\/strong><\/h2>\n

1964 applies until 2021 is ratified by both sides<\/strong><\/h3>\n

The convention of March 10, 1964, as amended by successive addenda\u2014including that of December 12, 2008, which rewrote the rules for cross-border workers\u2014remains the only applicable one. The convention of November 9, 2021, will replace it entirely: it will enter into force after the exchange of instruments of ratification and will apply to income received from the following January 1. The timetable depends on the two parliaments. We are therefore writing in the conditional tense regarding the date\u2014not regarding the content, which has been signed and is public.<\/p>\n

Specifically.<\/strong> Nothing has changed for you so far. But the switchover will not be neither progressive nor negotiable<\/b> It will take effect on January 1st, for everyone at the same time. A transfer signed on December 20th and the same transfer signed on January 10th will not be governed by the same legislation. This is what makes the issue exploitable: you have time to position yourself, provided you know which side of the date you want to be on.<\/p>\n

2. Tax exemption or tax credit: that's the real issue<\/strong><\/h2>\n

Two methods, two results, on the same income<\/strong><\/h3>\n

A tax treaty designates the state that has the right to tax, then tells the state of residence how to eliminate double taxation. The OECD model proposes two methods, and they do not yield the same result.<\/p>\n

With the\u2019exemption with a progressive exemption clause<\/b>, The country of residence removes foreign income from its tax base and only retains it to determine the applicable rate for the remaining income. The income is taxed only once, at the rate of the country of origin: if that country taxes little, you keep the difference. With the tax credit<\/b>, He includes this income in his tax base, calculates his tax on the total, and then credits the foreign tax up to his own share. You then always pay at least the rate of the country of residence, and the favorable difference disappears.<\/p>\n

Specifically.<\/strong> For a Belgian resident receiving French rental income, the difference is striking. Currently, France taxes this income while Belgium exempts it: your bill is the French bill. Under a tax credit system, Belgium recalculates her<\/b> Income tax is calculated on a total income including these rentals, then French tax is deducted. If Belgian tax is higher\u2014progressive tax rates and local surcharges\u2014you pay the difference. The property value and the rent haven't changed, but your tax burden has. Conversely, for a French resident receiving Belgian income, the income tax remains relatively stable\u2014but the income is included in your reference tax income, with the corresponding tax thresholds.<\/p>\n

For the technician.<\/strong> OECD Model Tax Convention, Article 23A (exemption with a progressive tax treatment) and Article 23B (ordinary tax credit). Article 19 of the Convention of 10 March 1964 organizes the elimination according to the logic of the exemption for Belgium, with a lump-sum credit on certain investment income. The Convention of 9 November 2021 is based on the post-BEPS OECD framework, with an effective tax liability clause: income not effectively taxed in the source state ceases to be exempt in the state of residence.<\/p>\n

On the French side, the method used in recent tax treaties is a tax credit equal to the French tax\u2014arithmetically equivalent to an exemption with an effective tax rate for income tax. The equivalence ends there: the income is included in both taxable income and the reference tax income, with the corresponding threshold effects.<\/p>\n

3. Real estate income, the most exposed item<\/strong><\/h2>\n

The only one that cannot be moved<\/strong><\/h3>\n

The property remains taxable in the state where it is located: 2021 will not change anything on this point. What changes is the treatment in the state of residence, and that is where the tax liability arises.<\/p>\n

The Franco-Belgian peculiarity lies in the difference between the two tax bases. France taxes the actual rent, net of actual charges, plus social security contributions. Belgium uses the cadastral income for properties rented for private use, including, since its 2021 reform, those located abroad. As long as it provides an exemption, this difference has no impact; under a tax credit, it becomes the tax liability.<\/p>\n

For the technician.<\/strong> French-source income of a non-resident: Article 164 B of the French General Tax Code (CGI); taxation according to the progressive income tax scale with a minimum rate of 20% and 30% (Article 197 A of the CGI), unless an average rate is requested on worldwide income. Social security contributions on investment income: Article L. 136-6 of the French Social Security Code; individuals affiliated with a social security scheme of another State covered by Regulation (EC) No 883\/2004 are exempt from the CSG-CRDS social security contributions and are only subject to the solidarity levy of 7.5%. This is a frequently overlooked point, and recovery is possible for years not yet time-barred.<\/p>\n

On the Belgian side, the exemption with a progressivity clause has never neutralized the additional municipal taxes on personal income: an "exempt" income already produces a cost there.<\/p>\n

4. Cross-border workers, pensions, dividends<\/strong><\/h2>\n

Three regimes that do not survive in the same way<\/strong><\/h3>\n

Border residents.<\/b> The scheme was already abolished for Belgian residents working in France by the amendment of December 12, 2008. It was maintained, on a transitional basis and under strict zone conditions, only for workers residing in the French border zone and employed in the Belgian border zone, with a planned extinction by 2033. The 2021 agreement does not reopen it: it formalizes its end.<\/p>\n

Pensions.<\/b> This is the area where the shift is most noticeable: it's a monthly payment, and it affects people whose income is no longer variable. Private and public pensions are not governed by the same rules, and their interaction changes with the legislation. A Franco-Belgian retiree needs to know, before the switchover, which country will tax their pension.<\/p>\n

Dividends.<\/b> The 1964 convention included, for Belgian residents, a flat-rate tax credit on dividends from French sources, the benefit of which had to be obtained through legal proceedings before the Belgian Court of Cassation. The 2021 convention does not renew this credit: an identified and quantifiable loss justifies a review of the investment allocation. before<\/i> entry into force.<\/p>\n

5. What we stop now, what we expect<\/strong><\/h2>\n

The date is the lever, not the assembly<\/strong><\/h3>\n