How do you get a tax advantage?
To qualify for a tax advantage, you must of course meet certain criteria.
Long-term Savings Insurance
- You take out savings insurance with an insurer.
- Guaranteed capital* and a fixed interest rate for each deposit.
ING Life Pension Plan, developed by NN Insurance Belgium NV, is a branch 21 savings insurance policy under Belgian law.
More information about Life Pension Plan can be found in the documents below. They are also available free of charge in French, Dutch, and English at your ING branch.
*ING and NN Insurance are members of the Guarantee Fund for Financial Services. In case of default of NN Insurance (due to bankruptcy or non-payment), there is a compensation which is limited to the surrender value of the contract and to a maximum of 100,000 euros per person and per institution.
There are several criteria you must meet to qualify for the tax advantage, including:
- living in Belgium
- being between 18 and 64 years of age (on 31 December of the year in which you start)
- paying your personal tax in Belgium
The tax treatment also depends on your personal situation and you should take into account that the criteria may change in the future. The criteria applying to long-term savings are different from those applying to pension savings.
How much is such a potential tax advantage?
If you qualify for the tax advantage, it will be a percentage of the amount you saved in the previous income year. For income year 2022 (= assessment year 2023) these figures apply:
- 30% tax advantage if you save up to €990 per year. (For example, if you saved €990 euros in 2022, your tax advantage will be €297 in 2023).
- 25% tax benefit if you save between €990 and €1,270 euros per year. (For example, if you saved €1,270 in 2022, your tax advantage will be €317.50 in 2023).
Can I combine both?
You can make payments into a pension savings fund and a pension savings insurance in the same year, but you can only get the tax advantage on one of them.
Another option is to choose one of them and combine it with long-term savings. For income year 2022 (= assessment year 2023) the following amounts apply in such a scenario:
- maximum 30% tax advantage if you save up to €2,350 per year. (For example, if you saved €2,350 in 2022, your tax advantage will be €705 in 2023).
However, the tax advantage may be limited. This can have an impact if you also have a mortgage loan for example. Long-term savings are entered in the same section of the tax return as some tax deductions for mortgage loans. If you have not yet reached the limit of the tax deductions for these types of loans, you can use long-term savings for the rest.
The maximum annual premium entitling you to tax relief, also depends on your professional income.
Pension Savings Fund
- Your capital is invested in shares, bonds and cash.
- The aim is to achieve a higher return. However, there is market risk involved. Capital and returns are therefore not guaranteed.
Star Fund is a collective investment fund (of the pension savings fund type) under Belgian law with a variable number of units. It is managed by NN Investment Partners.
More information on the Star Fund can be found in the documents below. They are also available free of charge in French, Dutch, and English at your ING branch.
Pension Savings Insurance
- You take out a savings insurance with an insurer.
- Guaranteed capital* and a fixed interest rate for each deposit.
ING Life Star Plan, developed by NN Insurance Belgium NV, is a branch 21 savings insurance policy under Belgian law.
More information on Life Star Plan can be found in the documents below. They are also available free of charge in French, Dutch, and English at your ING branch.
*ING and NN Insurance are members of the Guarantee Fund for Financial Services. In case of default of NN Insurance (due to bankruptcy or non-payment), there is a compensation which is limited to the surrender value of the contract and to a maximum of 100,000 euros per person and per institution.
Also interesting!
*About the financial services guarantee fund
ING and NN Insurance are affiliated to the Financial Services Guarantee Fund. If NN Insurance defaults (due to bankruptcy or non-payment), compensation is limited to the surrender value of the contract subject to a maximum of 100,000 euros per person and per institution.