Global Mobility Tax

Belgium | 2026 budget agreement in Belgium

Summary

On November 24, 2025 the Belgian government reached a long-awaited multi-year budget agreement, following intensive negotiations. A severe budgetary crisis, or even the fall of the government, has thus been averted. The new budget agreement contains a mix of new taxes, selective indexation restrictions, sector-specific VAT increases, and postponed tax reductions. While several details still require legislative work, the direction is clear: Belgium is moving towards a more revenue-driven and sustainability-oriented tax framework.

The detail

What is included in the 2026 budget agreement?

The new budget agreement addresses a number of remaining budgetary issues for 2026 and sets a consolidation trajectory of EUR 9.2 billion by 2029. For the 2026 budget, it has been agreed that the Summer Agreement, a political agreement dating back to the summer of 2025, will be effectively implemented. This means that among others the capital gains tax, pension reforms, and labour market reforms will ultimately be enacted (although some with minor adjustments). Below we provide you with a practical overview of the main personal income and employment tax related measures included in the recent budget agreement:

1. Introduction of a new capital gains tax: A 10% tax will be introduced in 2026, applicable to capital gains realised on financial assets (broad scope), with an annual exemption of EUR 10,000 (EUR 15,000 if the standard annual exemption is unused for five consecutive years).
2. Doubling of the annual tax on securities accounts: For individuals with securities accounts exceeding EUR 1 million, the tax rate will increase from 0.15% to 0.30%.
3. Increased tax rate for dividend distributions made by management companies: The reduced withholding tax rate which is applicable to dividend distributions by management companies in Belgium under the “VVPR bis regime”, will rise from 15% to 18% (a 3% flat tax increase). The overall tax rate of 18% will in principle also apply to distributions in the framework of the “liquidation reserve”, unless such distributions only take place when the company is liquidated. These changes will apply to newly created reserves from 1 January 2026 onwards.
4. Partial indexation cap in 2026 and 2028: The typical Belgian salary indexation mechanism remains applicable. However, for 2026 and 2028 it will only apply as we currently know it on salaries below EUR 4,000 gross. For employees whose salaries are above that threshold, the salary increase will be limited to the index applied on the threshold. Companies must nevertheless still pay half of the indexation on amounts above EUR 4,000 directly to the state treasury rather than the employees. This measure can be invoked a maximum of two times during the current governing period: once in 2026 and once in 2028. If multiple wage indexations occur, only the first indexation will be capped. Full indexation remains applicable in 2027.
5. Delay of planned personal income tax reduction: The previously planned reduction of personal income taxes from the Summer Agreement will only take full effect in 2030, under the next government, rather than in 2029. In that sense, of the originally planned EUR 4 billion tax relief, EUR 1 billion will be postponed to 2030.
6. Intensification of the fight against tax and social fraud: The government is strengthening enforcement with a fiscal prosecution unit and the addition of 377 inspectors to combat tax and social security fraud more effectively.
7. No further indexation of tax benefits for night and shift work and scientific research: The tax benefit of these regimes will no longer be increased in the upcoming years and will remain fixed at the 2025 level.
8. Lowering of health-care budget: The agreement puts a clear focus on reintegrating long-term ill people, currently estimated at a staggering 500.000. Re-screening 218.000 of them to assess physical ability to work should lead to a reintegration of at least 100.000 of them back into the labour market by 2030. Employers will be made responsible through a 30% contribution to sickness benefits for a period of up to 4 months after the end of the period covered by guaranteed wages.

Why is it especially relevant now?

The Budget Agreement provides a clear indication of the Belgian government’s priorities for this legislature: increase revenues and reduce expenditures to lower the budget deficit. With the new agreement now in place, it is anticipated that other planned reforms can also move forward, such as the anticipated changes with respect to the Belgian expat regime (currently still pending in parliament). Furthermore, it remains to be seen when other changes will actually be implemented, for example with respect to the mandatory use of the mobility budget (“mobility budget for everyone”), as the initial plan is/was to introduce this as of 1 January 2026.

Although many measures still require parliamentary approval (often the full parliamentary process is needed), it is clear that employers, employees, investors, and company directors will face significant changes in taxation and employment law. Early preparation is therefore essential to ensure smooth implementation of the new rules — particularly for organisations managing cross-border talent, complex Comp & Ben structures, or individuals with substantial investment portfolios. Even without the (final) legislation in place, preparatory work can be done and certain key decisions can be made. Indeed, impact modelling can start and internal alignment can be secured with respect to certain measures. Vialto Partners continuously monitors draft legislation and updates to guide organisations through these important changes.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively

Philip Maertens
Partner

Nic Boydens
Partner

Bart Elias
Partner

Want to know when a Regional Alert is posted?

Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.

Further information on Vialto Partners can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

© 2025 Vialto Partners. All rights reserved.