Belgium vs Iceland
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇧🇪 Belgium — Regional & Municipal Income Taxes
Belgium's 3 regions (Flanders, Wallonia, Brussels) and 589 municipalities each add centimes additionnelles (additional centimes) to federal income tax. Municipal rates range from 0% to 9.5% of federal income tax, averaging ~7%. Flanders, Wallonia, and Brussels have differing property tax (précompte immobilier) rates and housing policy incentives. The withholding tax on investment income (précompte mobilier) is federal at 30%. Belgium has no inheritance tax at federal level — it's regional.
🇮🇸 Iceland — Municipal Income Tax
Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.
Belgium vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇧🇪 Belgium has a higher top income tax rate (25–45% vs ~36.94%). 🇮🇸 Iceland is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (6–21% vs 11–24%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 33%), benefiting investors.