Offshore investment bonds are regarded as “Branche 23” products by the tax authorities in Belgium.
Insurance premium tax is levied at the rate of 2% of the contributions paid to the investment bond.
There is no Belgian tax on the following:
- Full or partial surrenders.
- The death of the last life assured.
- Fund switches.
There could be an inheritance tax liability on death, depending on the source of funds and marital status. If you are considering taking out an investment bond on a joint life basis it is imperative that you take advice since this could have unintended inheritance tax consequences.
The above article is based on our interpretation of Belgian law and we cannot accept any responsibility for any actions taken without us giving advice.