Liechtenstein has signed its first-ever tax treaty with Belgium, establishing a framework to eliminate double taxation for individuals and businesses operating across both countries, in line with OECD and BEPS standards.
Liechtenstein has announced the signing of its first income and capital tax treaty with Belgium on 4 May 2026 on the occasion of the 8th European Political Community (EPC) Summit in Yerevan.
This follows after Belgium and Liechtenstein officials have concluded negotiations for an income and capital tax treaty on 27 November 2024.
The double taxation agreement provides for the elimination of double taxation between Belgium and Liechtenstein. It creates a clear framework for individuals and legal entities in cross-border situations. The agreement is based on the international standard of the OECD and takes into account the requirements of the OECD/G20 BEPS (Base Erosion and Profit Shifting) Project to combat tax evasion and tax avoidance in a cross-border context.
The agreement contains provisions for the avoidance of double taxation on income and property taxes and stipulates that, in order to promote cross-border investment, no withholding taxes are levied on intra-group dividends, on loans between enterprises, or on royalties. In addition, the agreement governs the treaty treatment of asset structures, investment funds, and pension funds and establishes a mutual agreement procedure with an arbitration clause for the resolution of complex cases of double taxation. The exchange of information is conducted in accordance with the international standard, with the automatic exchange of information continuing to be carried out under the Agreement between the Principality of Liechtenstein and the European Union on the Automatic Exchange of Financial Account Information to Improve International Tax Compliance. Furthermore, mutual assistance in the collection of taxes has been agreed.
With this agreement, Liechtenstein is expanding its network of double taxation agreements and is strengthening the economic framework for investment between Liechtenstein and Belgium. The agreement enhances legal certainty for businesses and individuals and promotes bilateral cooperation.
The agreement will enter into force once ratification instruments are exchanged.
