Government launches “people’s bond”
The federal parliament has voted in favour of a new bond for individual investors that asks 15% tax on interest instead of the usual 25%
Bond offers tax advantage
Starting in January, individuals can buy a bond, which has a term of minimum five years and offers a tax advantage: instead of the normal 25% tax paid on interest earned from the bond, investors will pay only 15%. Interest on the bond will be set by the banks at a market rate.
In return for allowing the government to effectively borrow from citizens, all investments in the system will be guaranteed to a ceiling of €100,000 – the same as if the money were left in a normal savings account. The bond therefore offers the same risk but a higher earnings rate than savings accounts.
The people’s bond is available at any bank for any client, staring at €200. Once invested, the money is blocked for five years.
www.volkslening.be
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