Pension Rights Between Ukraine and Belgium
Belgium is known for its diamond trade, chocolate, waffles and distinctive culture. It is a popular destination for tourists, but it has also become a place of residence and employment for many Ukrainians. For those who have worked in Belgium or moved there after retirement, important questions arise concerning pension entitlement, recognition of foreign insurance periods, taxation and the payment of Ukrainian pensions abroad.
Recognition of employment and insurance periods accumulated in Belgium for Ukrainian pension purposes depends on the international social security framework applicable between the two countries. In the absence of an agreement providing for the aggregation or mutual recognition of insurance periods, employment in Belgium is not automatically included in the insurance record required for a Ukrainian pension. Likewise, Ukrainian insurance periods are not automatically recognised for Belgian pension purposes solely on the basis of Ukrainian legislation.
If a person has already been granted a pension and subsequently moves to Belgium, a separate question arises as to how that pension will be taxed and whether residence abroad affects the right to continue receiving pension payments.
Ukraine and the Kingdom of Belgium have concluded a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital. The Convention contains specific provisions governing pensions and other similar remuneration. The applicable tax treatment depends on the type of pension, the recipient’s tax residence and the other circumstances specified by the Convention.
Separate provisions apply to remuneration and pensions connected with government service. Depending on the circumstances, such payments may be taxable in the state in connection with whose government service they are made or in the other contracting state, taking into account factors including the recipient’s residence and nationality.
It is therefore important to distinguish between recognition of Belgian insurance periods for Ukrainian pension purposes, taxation of pension income and payment of an already granted Ukrainian pension to a person residing in Belgium. These are separate legal issues and are governed by different rules.
The Constitutional Court of Ukraine addressed the issue of pension payments to Ukrainian pensioners residing abroad in its Decision No. 25-rp/2009 of 7 October 2009. The Court declared unconstitutional provisions of Ukrainian pension legislation that made pension payments to persons permanently residing abroad dependent on whether Ukraine had concluded an international pension agreement with the relevant country.
Accordingly, the absence of a bilateral pension or social security agreement should not, by itself, constitute grounds for terminating an already granted Ukrainian pension solely because the pensioner resides in Belgium. A person who has acquired the right to a Ukrainian pension does not automatically lose that right by moving abroad.
At the same time, the right to continue receiving an already granted Ukrainian pension should not be confused with the recognition of periods of employment accumulated in Belgium when determining entitlement to a Ukrainian pension. The Constitutional Court’s position on pension payments abroad does not, by itself, create a mechanism for adding Belgian insurance periods to a person’s Ukrainian insurance record.
Ukrainians who have worked in Belgium should therefore retain documents confirming their employment, earnings and participation in the Belgian social security system. When applying for a pension or arranging pension payments while residing abroad, the legislation and international arrangements applicable at that time should be examined to determine how the person’s Ukrainian and Belgian pension rights are affected.
