Kosovo and Belgium have signed a new income and capital tax treaty aimed at eliminating double taxation, preventing tax abuse, and boosting cross-border investment, replacing the previous 1980 agreement.
Kosovo and Belgium have signed a comprehensive income and capital tax treaty on 16 April 2026, marking a significant step in strengthening economic ties between the two nations.
The agreement was formalised during the Spring Meetings in Washington DC by Kosovo’s Finance Minister Hekuran Murati and Belgium’s Deputy Prime Minister and Finance Minister Jan Jambon.
It focuses on eliminating double taxation with respect to income and capital taxes while preventing tax evasion and avoidance. Minister Murati highlighted that the treaty establishes more favourable conditions for investments and simplifies business operations in both countries.
The agreement applies to Belgium’s individual income tax, corporate income tax, legal entities income tax, non-residents income tax, immovable property withholding tax, and annual tax on securities accounts. On the Kosovo side, it covers personal income tax, corporate income tax, and property tax.
It provides for a 15% withholding tax on dividends, reduced to 0% where the beneficial owner is a qualifying company holding at least 10% of the payer’s capital for at least 365 days or a recognised pension fund.
Interest is generally subject to a 10% withholding tax, with exemptions for certain intercompany loans, qualifying pension funds, and government-related entities.
Royalties are exempt from withholding tax.
The new treaty will replace the outdated 1980 tax agreement between Belgium and former Yugoslavia, which currently applies to Kosovo. It will enter into force after 30 days following the exchange of ratification instruments between both countries.
