Belgium Insurance Tax Guide

Insurance Premium Tax Rates

• Fire and property insurance (Brandverzekering / Assurance incendie): 4.41% of the gross premium. This includes: home insurance (woonverzekering / assurance habitation), commercial property insurance, industrial fire insurance, and business interruption insurance. The 4.41% rate is the standard for most property and casualty insurance.
• Motor vehicle liability insurance (BA-motor / Assurance RC auto): 9.25% of the gross premium for compulsory motor third-party liability insurance. This is the highest regular insurance premium tax rate in Belgium.
• Other motor insurance: Comprehensive motor insurance (omnium / casco — covering damage to the insured's own vehicle) is taxed at 4.41% (same as property insurance).
• Health and accident insurance (Ziekteverzekering / Assurance maladie): 1.5% of the gross premium. This includes: hospitalisation insurance, dental insurance, outpatient care insurance, and accident insurance. The reduced rate reflects the social importance of healthcare coverage.
• Life insurance (Levensverzekering / Assurance-vie): 0% — life insurance premiums are exempt from insurance premium tax. This includes: (a) individual life insurance (tak 21, tak 23), (b) group insurance (groepsverzekering / assurance de groupe), (c) pension savings insurance (pensioenspaarverzekering / assurance épargne-pension).
• Other exempt insurance: The following are also exempt from insurance premium tax: (a) transport insurance (goederenvervoer / transport de marchandises — maritime, air, road, rail), (b) reinsurance, (c) export credit insurance, (d) insurance for international organisations and embassies, (e) social security insurance (compulsory health insurance — the "mutualiteit" / "mutuelle" contributions).

Life Insurance — Tax Treatment

• Tak 21 (Guaranteed return / Gewaarborgd rendement): A life insurance policy with a guaranteed minimum interest rate (the "rekenrente" / "taux technique"). The return is not taxed annually — only upon disbursement (the "fiscale uitgestelde belasting" / "impôt différé"). At disbursement: (a) if taken as a lump sum at retirement (after age 60): taxed at 10% (IPT/VAPZ) or 16.5% (pensioensparen), (b) if taken as a monthly annuity: taxed at progressive rates (25–50%) with a portion exempt, (c) if surrendered early: the gain is taxed at 30% (the roerende voorheffing rate).
• Tak 23 (Investment-linked / Beleggingsgebonden): A life insurance policy where the return depends on the performance of underlying investments (funds, shares, bonds). The same tax deferral applies — no annual tax on investment returns within the wrapper. At disbursement: taxed in the same way as Tak 21. Tak 23 policies are used for long-term wealth accumulation (the "30-year rule" — if the policy is held for at least 30 years, the disbursement is tax-free).
• Tax deduction for pension contributions: Individual contributions to a pension savings insurance policy (pensioenspaarverzekering / assurance épargne-pension) are deductible: 30% tax credit on contributions up to €1,270, or 25% deduction on contributions up to €3,420.

Captive Insurance Companies

• Belgian captive regime: Belgium has a favourable regime for captive insurance companies (herverzekeringsvennootschappen / sociétés de réassurance). A captive is an insurance company owned by a non-insurance parent that insures the parent's risks. Belgium offers: (a) a reduced corporate tax rate (20% for SME captives on first €100K), (b) the notional interest deduction (NID) on the captive's equity, (c) an exemption from the annual insurance premium tax for reinsurance, (d) the ability to use the participation exemption (DVV) for dividends from the captive, (e) access to Belgium's extensive treaty network for premium flows.
• Regulatory framework: Captives are regulated by the National Bank of Belgium (NBB) under the Solvency II regime (proportionality rules apply — small captives benefit from simplified reporting and governance requirements). The captive must have substance in Belgium (registered office, director, compliance officer, auditor). The FSMA provides guidance on captive licensing.

For related reading, see our Corporate Tax Guide →, Personal Tax Guide →, and Pension Guide →.