72-year-old Belgian retiree in Paraguay: from €26,000 in annual taxes and €800,000 in inheritance tax to a sunny retirement in 2026

"I worked for 45 years in Belgium. As an industrialist, I started my company at 27 and sold it at 65. For 45 years, I paid my taxes—all my taxes. Employer contributions, employee contributions, professional withholding tax, movable withholding tax, municipal tax, inheritance tax on my parents' estate, social security contributions. Belgium took everything from me, down to the last cent. At 72, I decided enough was enough. I'm living my final years for myself."

Georges Van den Berg is 72 years old. He is a Belgian retiree, former head of a Walloon industrial SME (manufacturing metal parts for automobiles) which he founded and managed for 38 years before selling it in 2019. His assets total ~€3.5 million (sale proceeds + real estate + financial portfolio + Belgian life insurance). Since moving to Paraguay in 2025, he receives his pension and investment income with drastically reduced taxation, while enjoying a quality of life he could never have afforded in Belgium for the same budget.

Here is his story—reconstructed from representative profiles of Belgian retirees who have settled in Paraguay. Names and some details have been changed to preserve confidentiality.

The Situation in Belgium: The Affluent Retiree Caught in a Bind

Georges' Income in Belgium

• Legal Pension: ~€2,200/month gross (self-employed pension, capped despite 45 years of contributions). Net after professional withholding tax and INAMI contributions: ~€1,850/month.
• Supplementary Pension (PLCI + EIP/PCLI): capital of ~€350,000 liquidated at 65. Invested in a securities account: return ~4%/year = ~€14,000/year gross.
• Financial Portfolio: ~€800,000 in stocks, bonds, funds. Return ~4.5%/year = ~€36,000/year gross.
• Rental Property (2 apartments in Namur): rent ~€18,000/year gross.
• Belgian Life Insurance (Branch 21 + 23): ~€400,000 outstanding.
• Total Gross Income: ~€94,000/year (~€7,800/month)

Belgian Taxation for the "Affluent" Retiree

Belgium is often presented as a tax haven compared to France due to the absence of ISF/IFI and untaxed capital gains. But for a retiree with diversified income, the reality is different:

Income Type	Gross Annual Amount	Belgian Taxation	Estimated Tax
Legal Pension	€26,400	Progressive scale 25-50% + municipal surcharges (~7%)	~€6,500
Movable Income (dividends, interest)	€50,000	Movable withholding tax 30% (final)	~€15,000
Rental Income	€18,000	Indexed cadastral income × 1.4 + progressive scale. In practice: ~25-35% effective on revalued cadastral income.	~€3,000
INAMI/AMI Contributions	—	3.55% on gross pension	~€940
Solidarity Contribution	—	0-2% depending on pension income	~€400
Tax on Securities Accounts (> €1M)	—	0.15% on value > €1M	~€300 (if applicable)
Total Annual Levies			~€26,140
Effective Rate on Gross Income			~27.8%

The effective rate of 27.8% is lower than that of an equivalent French resident (~35-45%), but remains significant: €26,000/year in taxes for a retiree who has already paid taxes for 45 years. Georges: "I funded the Belgian state for 45 years. My company employed 60 people. I paid millions in employer contributions. And at 72, they're still taking €26,000 a year from me. At what point is it enough?"

The Trap of Belgian Inheritance Taxes

But the real trap is not current taxation—it's inheritance. Inheritance taxes in Wallonia (Georges' region) are among the highest in Europe:

• Direct line (children): progressive scale 3-30%. Above €500,000: 30%. This is the highest marginal rate in Belgium (Wallonia).
• For an estate of €3.5M transferred to 2 children: estimated taxes ~€700,000-€900,000
• No significant allowance: unlike France (€100,000 per child), Wallonia only has progressive brackets without a true allowance.

Out of a €3.5M estate, Georges risked leaving €700,000-€900,000 to the Walloon state instead of passing it on to his children and grandchildren. It was this inheritance calculation that triggered the decision to expatriate—more than the current taxation.

The Decision: Leaving at 72

Motivations

• Inheritance: reduce inheritance taxes by €700-900,000 by relocating assets outside Belgium.
• Current Taxation: reduce the €26,000/year in levies on retirement and investment income.
• Climate: "I'm 72. My joints can no longer tolerate Belgian winters. The humidity, the cold, the grey skies 8 months a year—that's over. I want sun."
• Cost of Living: Belgium is expensive for a retiree (house to maintain, heating, insurance, food). Paraguay offers a higher standard of living for a lower budget.
• Adventure: "My wife passed away 4 years ago. My children are adults and independent. I'm alone in a big house in Namur. Why stay? For the pleasure of watching the rain through the window? I still have 10-15 good years ahead of me. I'm going to live them."

Concerns of a Septuagenarian

• Health: "At 72, this is my number one concern. Can Paraguayan hospitals treat me if I have a heart problem? A stroke? Cancer?"
• Isolation: "I'm a widower. My children are in Belgium. If I'm alone in Paraguay and I fall in my apartment, who will find me?"
• Language: "At 72, learning Spanish? My children thought it was impossible."
• Distance: "Namur-Asunción is 12,000 km. If a grandchild is born or a friend dies, I'm 20 hours away by travel."

What Convinced Him

• Meeting other Belgian expatriate retirees: Georges contacted a Belgian retiree who had been living in Asunción for 3 years through an expatriate forum. They chatted for 2 months via Zoom. "He told me: 'Georges, come. You'll see, it's better than you think.'"
• 3-week reconnaissance trip: visited Asunción, met the French-speaking community, visited private clinics, visited apartments, had lunches in expatriate neighborhoods. "After 5 days, I knew. This is it."
• The inheritance calculation: €700,000-900,000 in avoided inheritance taxes = an irrefutable argument. "I'd rather give that money to my grandchildren than to the Walloon state."

The Move: A Belgian Retiree in Asunción

The Process

• Paraguayan tax residency obtained in 3 months (from €1,400)
• Deregistration from the Belgian national register (Namur municipality) and registration with the Belgian consulate in Buenos Aires (consulate responsible for Paraguay)
• Notification to the FPS Finance (Belgian tax administration) of the transfer of domicile
• Moving from the house in Namur: put up for sale (sold after 8 months, ~€380,000) rather than renting (Georges no longer wanted to manage Belgian real estate)
• 2 rental apartments in Namur: kept for now (Belgian rental income maintained, taxed in Belgium)
• Financial portfolio transferred to an international broker (Interactive Brokers) via US LLC
• Belgian life insurance: kept (no redemption, continuous capitalization)

Accommodation

Georges chose a 2-room apartment in a secure residence in the Manorá neighborhood:

• Rent: 650 USD/month (~€600). 75 m², bright, balcony, residence with 24h guard, swimming pool, green space.
• "My house in Namur was 180 m² and I used 60. Here, I have 75 m² well-arranged and I live in the whole space. It's enough for a single man. And the residence is lively—I meet neighbors, I say hello to the guard, I'm not alone in a big empty house."
• Furniture bought locally: €2,500 to furnish everything (new furniture, bedding, dishes, small appliances). "In Belgium, just the living room table was worth more than all the furnishings in my Paraguayan apartment."

Home Help

Georges employs a home helper 5 half-days a week:

• Cleaning, shopping, meal preparation, laundry
• Cost: 280 USD/month (~€260)
• "In Belgium, I had a cleaner 4 hours a week for €200 a month after ALE. Here, I have someone 5 half-days a week for barely more. She cooks, she shops, she looks after me. It's a luxury I could never have afforded in Belgium at that price."
• The home helper is also a safety net: "If I fall, if I'm sick, if I need help—she's there 5 days out of 7. My children in Belgium are reassured."

Health: The Retiree's Number One Concern

Access to Healthcare in Asunción

Georges conducted extensive research on the Paraguayan healthcare system before leaving:

• Private Clinics: Sanatorio Migone, Santa Clara, Italiana, Francesa—high-standard private clinics with modern equipment (scanner, MRI, operating room). Georges is registered at the Italiana clinic (Italian community in Paraguay, good reputation).
• Treating Physician: French-speaking cardiologist trained in Argentina. Consultation: 40 USD (~€37). "In Belgium, my cardiologist charged me €85. Here, €37. For the same competence—he studied in Buenos Aires, one of the best medical schools in Latin America."
• Medications: well-stocked pharmacies. Common medications (statins, antihypertensives, etc.) cost 30-70% less than in Belgium. "My box of statins: €8 here vs. €25 in Belgium (same molecule, same dosage)."
• Dentist: modern practice in the neighborhood, 25-40 USD/consultation. "My scaling costs €30. In Belgium, it was €80 before reimbursement."

Health Insurance

• International health insurance: €350/month (April International contract, worldwide coverage, repatriation included). More expensive than for a younger person, but essential at 72.
• Coverage: hospitalization, consultations, examinations, surgery. Annual ceiling: €1M. Deductible: €200/year.
• Medical evacuation: in case of a complex pathology untreatable in Paraguay, evacuation to Buenos Aires (1h30 flight) or São Paulo (2h flight). Both cities have international-level hospitals (Hospital Italiano Buenos Aires, Hospital Sírio-Libanês São Paulo).
• Belgian mutual insurance: terminated (no longer Belgian domicile = no longer INAMI coverage). Compensated by international insurance.

Health Assessment after 14 Months

• 2 routine cardiology consultations (ECG + blood test): ~€100 total
• 1 control thoracic CT scan (former smoker): ~€120
• Dentist (2 check-ups + 1 crown): ~€250 total
• Physiotherapist (back pain): €20/session, 10 sessions = €200
• Annual pharmacy (chronic medications): ~€400/year (vs. ~€800/year in Belgium after reimbursement)
• Total health expenses year 1: ~€1,070 (excluding insurance). In Belgium: comparable but with the complexity of the third-party payment system.
• "The quality of care pleasantly surprised me. It's not the Liège university hospital, but for the routine medicine of a retiree, it's largely sufficient. And my cardiologist takes the time to explain things to me—not 5 minutes in a rush like in Namur."

Taxation in Paraguay: The Optimized Belgian Retiree

Income in Paraguay

Income Type	Gross Annual Amount	Taxation in Belgium (before)	Taxation in Paraguay (after)
Belgian legal pension	€26,400	Belgian personal income tax + municipal = ~€6,500	Belgian-Paraguayan convention: pension taxable in country of residence → 0% in Paraguay (foreign source) OR Belgian withholding according to convention. In practice: INAMI withholding 3.55% (~€940) and solidarity contribution (~€400) maintained by the ONP. Net: ~€25,060.
Movable income (dividends, interest via US LLC)	€50,000	Movable withholding tax 30% = €15,000	0% Paraguay (foreign source via US LLC + Interactive Brokers) = €0
Rental income (Namur, retained)	€18,000	~€3,000 (revalued cadastral income + scale)	Still taxed in Belgium (Belgian real estate) = ~€3,000. Not taxed in Paraguay.
Proceeds from house sale (€380,000, reinvested)	Return ~4% = ~€15,200	Movable withholding tax 30% if in Belgium = ~€4,560	0% Paraguay (US LLC)
Total levies		~€26,140	~€4,340 (INAMI + solidarity + residual Belgian property tax)

Annual tax savings: ~€21,800/year. In 10 years: ~€218,000 in avoided levies. But the major saving is on inheritance.

Inheritance Strategy

This is the core of Georges' strategy. By transferring his residence and progressively relocating his assets outside Belgium:

• Assets outside Belgium: financial portfolio via US LLC (~€1.15M + €380,000 house proceeds) + life insurance transferred to a Luxembourg contract (~€400,000) = ~€1.93M outside Belgium.
• Residual assets in Belgium: 2 rental apartments in Namur (~€350,000). Taxable in Belgium upon death (Walloon inheritance taxes).
• Inheritance taxes: on the €1.93M outside Belgium, Walloon taxes no longer apply if Georges has not been a Belgian resident for 5+ years at the time of death (Belgian grace period = 5 years, not 10 as in France).
• Taxes on the €350,000 in Belgium: Walloon inheritance taxes on Belgian real estate = ~€45,000-€55,000 (vs. ~€700,000-€900,000 on the entire €3.5M estate if he had remained in Belgium).
• Inheritance savings: ~€650,000-€850,000

Georges: "My accountant did the math in front of me. If I die in Belgium with €3.5M in assets, the Walloon State takes €700,000-€900,000. If I die in Paraguay after 5 years, it takes €45,000-€55,000 (only on residual Belgian real estate). The difference—€650,000-€850,000—goes to my children and grandchildren. I have 3 grandchildren. That's €250,000 more for each of them. How could I NOT leave?"

Active Transmission Strategy

Georges is not just waiting. He actively transfers during his lifetime:

• Donations via Luxembourg life insurance: beneficiary clause for the benefit of children and grandchildren. Transmission outside inheritance. 0% in Paraguay if beneficiaries are outside Belgium.
• Manual donations: €100,000 per year distributed between his 2 children. In Belgium, manual donations (without notarized deed) are not taxed if made more than 3 years before death. From Paraguay: no gift taxes (outside Belgium).
• Progressive sale of Namur apartments: objective = zero Belgian assets within 3-5 years. Proceeds reinvested in Paraguay (local real estate) or via US LLC. Total elimination of exposure to Walloon inheritance taxes.

See our detailed guides: international inheritance and donations and transmission.

Monthly Budget for a Retiree in Asunción

Item	Namur (before)	Asunción (after)
Housing	€0 (owner, but household expenses ~€450/month: heating, water, electricity, property tax, insurance, maintenance)	$650 USD/month (all-inclusive rent, secure residence)
Home help	€200/month (4h/week via ALE)	$280 USD/month (5 half-days/week)
Food	€450/month	$300 USD/month (groceries + home help cooking)
Restaurant	€200/month (2-3 outings)	$200 USD/month (4-5 outings, asado, restaurants)
Transport	€250/month (car, gas, insurance, maintenance)	$80 USD/month (Bolt exclusively, no car)
Health insurance	~€180/month (complementary Belgian mutual insurance)	€350/month (April International, worldwide coverage)
Direct health (consultations, medication)	~€100/month (after reimbursement)	~$90 USD/month
Leisure (reading, cinema, outings)	€150/month	$100 USD/month
Travel (returns to Belgium, Buenos Aires)	€0 (was in Belgium)	€400/month provisioned (2 round trips to Belgium/year + BA weekends)
Internet + phone	€65/month	$50 USD/month
Monthly total	~€2,045	~$2,550 USD (~€2,370) including €400 travel

The monthly budget is comparable (~€2,370 in Asunción vs ~€2,045 in Namur). But the quality of life is incomparably better:

• Home help 5 half-days/week (vs 4h/week in Belgium)
• Secure residence with swimming pool and 24-hour guard
• Restaurant 4-5x/week (vs 2-3x)
• Sunny climate 300+ days/year (vs Belgian gloom)
• No more car to maintain (Bolt everywhere)
• Cheaper and faster medical consultations

And most importantly: €21,800/year less in deductions + €650,000-850,000 in avoided inheritance taxes. The cost of living budget is similar, but the overall savings are colossal.

Daily life of a 72-year-old retiree in Asunción

Georges' typical day

• 7 AM: wake up, breakfast on the balcony (coffee, fresh tropical fruits — mango, papaya, pineapple). Reading Belgian newspapers online (Le Soir, L'Écho).
• 8:30 AM: morning walk in the neighborhood (30-40 minutes, mild weather in the morning even in summer)
• 9:30-11 AM: Spanish lessons (3x/week, home tutor, $10 USD/hour). "At 72, memory is not as sharp. But Spanish, when you speak French and a little Dutch, is doable. In 10 months, I can order at a restaurant, talk to the doctor, chat with my neighbors. It's not Cervantes, but it's functional."
• 11 AM-12 PM: reading, crosswords, correspondence (emails to children and grandchildren, weekly Zoom with family)
• 12:30 PM: lunch prepared by the home help (simple and tasty Paraguayan cuisine: Paraguayan soup, grilled meat, mandioca, vegetables)
• 2-4 PM: nap or quiet activity (documentary, reading, online chess)
• 4-5:30 PM: residence pool or walk in Parque de la Salud (nearby park)
• 6 PM: aperitif on the terrace with other residents (Paraguayan retirees, Argentinian neighbor)
• 7:30 PM: dinner (local restaurant 2-3x/week, home help cooking on other evenings)
• 9 PM: reading, Belgian or French TV (streaming), bedtime

Social life

• Francophone community: "I joined the group of Francophones in Asunción. There are retirees like me, but also young entrepreneurs. The mix of ages is refreshing. In Belgium, my friends were all retirees. Here, I have lunch with thirty-somethings who are starting businesses. It keeps me young at heart."
• Neighbors: "My neighbors in the residence are a 65-year-old Paraguayan couple and a 58-year-old Argentinian. We meet at the pool, we have aperitifs together. No need to speak perfect Spanish — a glass of wine is a universal language."
• Petanque club: "Yes, there's a petanque court in Asunción — the French community set it up. I play on Sunday mornings. It's surreal: petanque under palm trees at 28 degrees in the middle of winter."
• Grandchildren: FaceTime every Wednesday with the 3 grandchildren. "My 8-year-old grandson asked me to teach him Spanish. We do words together on video. It's become our thing."

Challenges and surprises for a 72-year-old retiree

Challenges

• Summer heat: "December-February, it's 35-40°C with high humidity. For a 72-year-old Belgian, it's tough. I've learned to live at the Paraguayan pace: activity in the morning, siesta in the afternoon, going out in the evening. And air conditioning is life. Some retirees go to Europe during the Paraguayan summer — I'm considering it for next year."
• Family distance: "It's the only real sacrifice. When my grandson had his end-of-year school show, I watched on FaceTime. It's not the same as being in the room. I go back to Belgium twice a year (Belgian summer and Christmas). It's enough, but it's still a miss."
• Paraguayan administration: "It's not Belgium. The queues, the stamps, the forms in Spanish. Fortunately, my home helper accompanies me for the procedures. And the paraguay-resident team manages the essentials."
• Lack of European culture: "No opera, no classical concerts, no European-level museums. Asunción is a functional city, not cultural. Buenos Aires compensates — I go there once a month for a concert or an exhibition at MALBA."

Surprises

• Kindness: "Paraguayans are kind in a way I hadn't seen in 72 years of living in Belgium. At the supermarket, a young man helped me carry my bags to the Bolt. The residence guard greets me every morning with a big smile. The home helper bakes me cakes for my birthday. It's a human warmth I didn't expect."
• Cost of healthcare: "I paid €180 for mutual insurance + €100 out-of-pocket in Belgium. Here, €350 for international insurance + €90 in direct costs = €440 total. More expensive on paper, but care is faster, the doctor takes their time, and I don't wait 3 weeks for an appointment. Excellent value for money."
• Food: "Paraguayan meat is the best I've ever eaten. And I'm Belgian — we know good food. A 400g beef fillet for €8 at a restaurant. In Belgium, it was €35. My cholesterol doesn't thank me, but my palate does."
• Spanish at 72: "I learned. Slowly, with mistakes, laughing. But I learned. My teacher says my accent is 'charming' — that's a euphemism for 'atrocious'. But I communicate. It's proof that you're never too old to learn."

Belgian specificities to manage

Belgian legal pension received abroad

• The Belgian pension continues to be paid abroad by the FPS (Federal Pension Service)
• Deductions maintained: INAMI/AMI (3.55%) + solidarity contribution (0-2%)
• Professional withholding tax: in principle, the Belgian-Paraguayan convention (if applicable) determines the country of taxation. In the absence of a specific convention covering pensions, Belgium may maintain a withholding. In practice: Georges receives his pension net of deductions (~€25,000/year net). This pension is not taxed in Paraguay (foreign source, 0% territoriality).
• Life certificate: required annually by the FPS (proving you are still alive). Obtained at the Belgian consulate in Buenos Aires or directly in Asunción via the Paraguayan municipality.

Belgian waiting period for inheritance rights

• In Belgium, the "waiting" period to avoid regional inheritance taxes is 5 years (not 6/10 years as in France)
• If Georges dies less than 5 years after leaving Belgium, the Walloon Region can still apply its inheritance taxes on the worldwide estate
• After 5 years of expatriation in Paraguay: Walloon rights no longer apply (except on property located in Belgium = the 2 apartments in Namur)
• Georges arrived in 2025. In 2030, the 5-year waiting period will be over. By then, he plans to sell the apartments in Namur to eliminate any residual exposure.

Belgian life insurance and Luxembourg transfer

Georges transferred his Belgian life insurance (branch 21 + 23) to a Luxembourg contract:

• Redemption of the Belgian contract: 0% exit tax (no tax on Belgian life insurance redemption after 8 years for branch 21)
• Re-subscription with a Luxembourg insurer: capital ~€400,000
• Advantages: Luxembourg security triangle, tax portability (0% in Paraguay), beneficiary clause for children
• Upon death: capital transferred directly to designated beneficiaries, outside Belgian and Paraguayan inheritance = 0% if beneficiaries outside Belgium

Review after 14 months

Indicator	Belgium (before)	Paraguay (after)
Annual tax deductions	~€26,140	~€4,340 (residual Belgian)
Tax savings/year	—	~€21,800
Projected inheritance savings	—	~€650,000-850,000
Monthly cost of living	~€2,045	~€2,370 (incl. travel to Belgium)
Quality of home help	4h/week	5 half-days/week
Climate	Gloom 8 months/year, 5°C average winter	300+ sunny days, 12-20°C winter
Loneliness	Alone in large empty house	Lively residence, neighbors, community, daily help
Activity	Monotonous routine	Spanish, pool, petanque, BA trips, social life

Georges summarizes: "In Belgium, I was an old man alone in a large, damp house waiting for death while paying my taxes. In Paraguay, I'm an active retiree who's learning Spanish, swimming every day, eating the best steaks in the world, and passing on his heritage to his grandchildren instead of the Walloon State. I should have left at 65."

Conclusion

Georges' story debunks the stereotype that Paraguay is only a destination for young digital nomads. At 72 years old, widowed, with assets of €3.5 million, Georges found exactly what he was looking for in Paraguay: reduced taxation (€21,800/year in current savings), an optimized inheritance strategy (€650,000-850,000 in avoided taxes for his children and grandchildren), a superior quality of life (daily home help, swimming pool, sun, gastronomy), and above all, personal renewal (Spanish, travel, social life, sense of adventure).

Paraguay offers Belgian retirees (and Francophones in general) a unique package: 0% territoriality on foreign income, 0% inheritance tax in direct line (vs 30% in Wallonia), comparable cost of living but superior quality of life, adequate medical access with international insurance, a welcoming Francophone community, and Buenos Aires as a cultural extension 1.5 hours away.

For assets of €3.5 million, the inheritance savings alone (€650,000-850,000) justify expatriation. The current tax savings (~€21,800/year × 10-15 years = €218,000-€327,000) are a bonus. The quality of life — sun, home help, gastronomy, adventure — is the gift.

Georges concludes: "At 72, people tell me I'm brave. No. Bravery would have been to stay in Belgium and accept that the state would take €800,000 from my grandchildren. Leaving is just common sense. And a bit of sunshine."

Are you a Belgian (or Francophone) retiree considering Paraguay? Contact our team for a personalized retirement plan: Paraguayan residency, Belgian inheritance strategy, life insurance transfer to Luxembourg, secure housing search, coordination with your notary and Belgian accountant. Your later years deserve sunshine, not fiscal gloom.