Mortgage in Spain for Belgian buyers

The Spain-Belgium Double Tax Convention (1995, revised 2009 protocol) governs how income, capital gains and inheritance are taxed between both countries.

If you remain Belgian tax resident (less than 183 days/year in Spain):

• IRNR (Spanish non-resident tax): 19% on imputed rental income (1.1-2% of cadastral value), even when not rented
• If rented: 19% on net rental income; deductible expenses include mortgage interest, IBI, community fees, insurance, repairs
• Belgian salary, pension, ONP/AGD payments: remain taxed in Belgium with treaty credit mechanism
• Capital gains on sale: 19% Spanish CGT first; Belgian relief via treaty (general capital gains often exempt in Belgium)
• No wealth tax in Belgium — your Spanish property does not create a wealth-tax issue at home (unlike France)

If you become Spanish tax resident (>183 days/year):

• Worldwide income subject to Spanish IRPF (19-47% progressive)
• Belgian pension reportable in Spain with treaty relief
• Modelo 720 required if Belgian assets >€50k per category
• Beckham Law option if relocating for work — flat 24% on Spanish income for 6 years

Action point: if you live in Flanders, Wallonia or Brussels, your regional inheritance tax differs significantly. Coordinate Spanish succession planning with a Belgian notary familiar with your region.

Inheritance planning is the most complex tax topic for Belgian property owners in Spain — and the most often overlooked.

Belgian side:

• Flanders: 3-27% for spouse/children, 25-55% for siblings, 45-65% for distant relatives
• Wallonia: 3-30% spouse/children, 20-65% other
• Brussels-Capital: 3-30% spouse/children, 20-65% other
• Foreign immovable property is generally not taxed in Belgium under treaty, but reporting requirements may apply

Spanish side:

• Spanish property triggers Spanish ISD (Impuesto de Sucesiones y Donaciones) — paid in the autonomous region where the property is
• Andalusia, Madrid: heavily bonificada (often near 0% for direct heirs)
• Catalonia, Balearic: progressive scale, less bonificada

EU Succession Regulation 650/2012: as a Belgian citizen, you can elect Belgian law to govern the succession of your Spanish property by including a clause in your Belgian will or Spanish-Belgian declaration. This typically simplifies the process.