Due to come into force on 1 January 2017, the new rules mean occupational pensions provided by a Belgium-domiciled insurance company to a non-resident are not subject to tax as long as there is no taxable revenue incurred in the country that is linked to the pension.
Belgium said the move would “confirm its position as the country of first choice for the establishment of pan-European pension funds”.
Under the new system, pension funds and insurance companies will be required to provide the authorities information on the scheme and their members to qualify for the tax break.
Leading life companies in Belgium include AG Insurance, Axa Belgium and KBC Assurances.
The move comes as in recent months a number of Dutch pension funds have relocated to Belgium due to the nation’s more flexible approach.