Non-tax savings are life insurance policies consisting of a combination of a formula with a guaranteed return from the insurance company (branch 21) and/or a formula offering a return linked to investment funds (branch 23). The branch 23 portion does not offer any guarantee of return or capital, but has the potential to generate higher returns than traditional banking products.

Tax savings use the same vehicles but benefit from a tax reduction through two vehicles:

The pension savings plan allows you to pay premiums into a tax-free basket until you reach retirement age, subject to certain conditions:

• You must be at least 18 years old and you can make a final payment no later than 31 December of the year you turn 64.

• The tax reduction only applies if you save for at least 10 years. Starting before your 55th birthday is optimal but not mandatory.
• Your insurance contract must name you as the beneficiary and, in the event of death, your relatives up to the second degree plus your spouse or legal cohabitant. This means that if you do not have relatives in this order, you cannot take out pension insurance. For example, you cannot name your de facto cohabitant as the beneficiary.
• The basic ceiling, which is €990 maximum (in 2023): this gives you a 30% tax reduction.

The long-term savings plan allows you to pay premiums into a tax-free basket until you reach retirement age, subject to certain conditions:

• You must receive net taxable professional income in Belgium that exceeds the sum of your non-taxable income.

• The contract must have a minimum term of 10 years.
• You must take out the policy before the age of 65.
• The policyholder must be the same person as the insured and the beneficiary in the event of survival.
• The premium ceiling is calculated based on your net income and gives you a 30% tax reduction. It is €2,350 in 2023.