This is it, 236 days after the federal elections of 9 June 2024, the die was finally cast on Friday 31 January 2025. With the words “Alea iacta est”, the new Belgian Prime Minister, Bart De Wever (BDW), confirmed the birth of the so-called “Arizona Coalition”. This remarkable coalition consists of liberals, socialists, Christen Democrats and Flemish-nationalists (N-VA). The colors of the participating political families can be found in the flag of the American state Arizona: blue (liberals), red (socialists), orange (Christen Democrats) and yellow (Flemish-nationalists).
Belgium has a new and rather impressive Government Agreement. The basis for the government negotiations has always been BDW’s socio-economic “Supernote”. This master plan (which is now cast in a Coalition Agreement) is a very detailed and comprehensive document, which was modified and reworked multiple times during the coalition talks. Going forward it will serve as the framework and basis for the new government’s policies and for the initiation of new legislation.
Making the expat regime more “attractive” again
The idea is to make the special tax regime for incoming taxpayers and researchers more attractive again in order to bring (and maintain) international talent to Belgium.The tax-free amount for recurring costs proper to the employer will be increased from 30% to 35%. Moreover, the absolute cost ceiling of EUR 90.000 will be abolished. Last but not least, the minimum annual gross remuneration will be lowered from EUR 75.000 to EUR 70.000 (this threshold will typically still have to be prorated in the year of arrival, departure, or end of employment under the regime).
The announced changes to the Belgian expat regime will for sure have a positive impact on inbound international employment situations. Indeed, it should become more feasible for companies to attract more high-earning profiles to Belgium, given the increased maximum of the tax-exempt cost allowances and the abolishment of the EUR 90.000 limit. Also, more individuals should have access to the regime, taking into account the decrease of the minimum salary threshold.At this point, it is not yet clear when these proposed changes would come into effect. It goes without saying however that these changes will entail some additional contractual obligations where costs would be increased in line with the new possibilities.
A higher net salary… starting as of 2027
As of 2027, the net wages for everyone who works should increase, with a focus on the wages below the median level. In combination with other measures, the new Federal Government wants to bring the difference in terms of net income between working and not working to (more than) EUR 500 per month. But that will take some time. It is anticipated that the reduction of the tax burden for workers (and thus the increase of their net wages) will not have its full impact until 2029.
This should mainly be achieved by increasing the standard personal tax-free allowance (for those individuals who are working), a modification of the social job bonus and a reduction (no longer abolishment!) of the special social security contribution, a contribution which was introduced back in 1994 as an additional funding of Belgian social security. Under the new Federal Government, the reform will become ‘single friendly’ (as the current special social security contribution is detrimental for singles).A tax reform of EUR 6.5 billion is in the air. Out of that number a portion of EUR 4.4. billion will be used to lower the burden on labor. The tax reform will pursue the principles of justice, neutrality and simplicity. It will be financed up to approximately EUR 5 billion, which means that the so-called “tax cut” will end up being EUR 1.5 billion.
50% reduction of the marital quotient
In order to eliminate discriminatory tax treatment between cohabitation forms, the tax benefit of the marital quotient will be reduced. This mechanism allows married or legally cohabiting couples to shift up to 30% of the higher-earning partner’s income to the lower-earning (or non-earning) partner where this portion is taxed at a lower tax rate, thus reducing their overall tax burden by taking advantage of the lower progressive tax brackets. This benefit will be reduced by half towards 2029. For retired people, the marital quotient will perish over time.
Equal increase of the lump-sum tax-free amount for dependent children
The new Federal Government wants to treat every child as equally as possible. The increase of the tax- free amount will be modernized and brought more in line with contemporary sociological realities. In the future, for every child the same increase will be given up to a certain maximum amount. This specific reform is in principle neutral from a budget perspective. In addition, the increase of the lump-sum tax-free amount for single parents will only be granted to truly single parents.
Abolishment and updates for tax reductions, exceptions and exemptions
The new Federal Government will abolish or update a series of tax reductions and deductions, including:
Introduction of 10% solidarity contribution (capital gains tax)
The introduction of a capital gains tax on shares has somehow always been on the menu of Mr De Wever and was heavily discussed during the past months. This capital gains tax ultimately also made it to the new Government Agreement. It is no longer labeled as a “tax” but rather a solidarity contribution. What’s in a name? The objective still remains: taxing future realised capital gains on financial assets (such as shares, bonds, trackers, funds and other investments such as crypto-activa), built-up as of the introduction of the solidarity contribution. Historic capital gains will thus be exempted from taxation.
As capital gains will be taxed, capital losses (i.e. sale of financial assets with a loss) within the year will become deductible, without carryforward possibility. However, in order to reduce the impact of the solidarity contribution for small investors, an exempted amount will be introduced. This tax-free threshold will ultimately be set at EUR 10.000. Moreover, it will become subject to annual indexation, and will become available through the individual tax return.For entrepreneurs who have a substantial interest of at least 20% in a company, the realised capital gain upon selling of the shares will be exempted up to EUR 1 million.
In the previous version of the supernote it was mentioned that employees who receive stock options from their employer would become subject to a solidarity contribution, which ought to be a compensatory measure for the fact that stock options (within the Belgian stock option legislation) are typically not subject to social security contributions. However, by way of last minute change in the final sprint of the formation talks, this is no longer on the table, meaning that there will be no solidary contribution imposed for employees in this context.
What about interest and dividend income?
It is remarkable that the Coalition Agreement no longer seems to contain any concrete measures in relation to tax exempt interest and dividend income. Today, EUR 859 (maximum amount for tax year 2026, income year 2025) of dividend income is tax exempt. Moreover, interest on (regulated) savings accounts are exempt up to EUR 1.050 (maximum amount for tax year 2026, income year 2025). Indeed, previous versions of the BDW Supernote contained a concrete proposal to extend the existing tax exemption to interest income from other accounts, state bonds and even to other movable income such as dividend income within a broad tax exempt basket. However, it is stated in the Coalition Agreement that it will be investigated how the current movable withholding tax exemptions for interest and dividends can be simplified and become more comprehensible, without reducing them. Potentially this can be seen in the context of the Belgian tax exemption for income from regulated savings accounts, which is deemed not in line with European legislation. If Belgium is convicted by the European Court of Justice, the Minister of Finance will (within a timeframe of 3 months) propose a budget neutral suggestion towards the Federal Government, harmonizing the existing tax reductions and tax exemptions regarding savings income, with more flexibility for individual taxpayers.
Addressing improper use of management companies
To curb tax optimization through management companies, the minimum managerial remuneration (towards the company director) required to qualify for the reduced corporate income tax rate of 20% (on the first EUR 100.000 taxable profit) will be increased from EUR 45.000 up to EUR 50.000. A company director’s income typically consists of the periodical gross director income, but can also include various benefits in kind (company car, smartphone, laptop, etc.) and it can even be complemented with tantièmes.Moreover, it is anticipated that in the future, up to maximum 20% of the annual gross director income may consist of benefits in kind. This may cause certain company directors who have a management company to revisit their “remuneration package”. Of course, additional bonuses on top of the gross director income will still be possible.
There will be changes to the dividends-received deduction (DRD) regime for companies in Belgium. The mechanism of the deduction of definitely taxed income, provides that profit distributions from subsidiaries to the parent company are tax-free if they were already taxed at source. The system of “DRD Beveks” which allows entrepreneurs to invest (via an investment company) in shares in a tax-friendly manner, without having to comply with the strict conditions of the DRD-regime, would remain. However, a capital gains tax of 5% will be introduced upon “exit”. Most likely the same principles as the solidarity contribution will be applied, whereby the capital gain will only be taxed to the extent that it was built-up since the introduction of this tax measure.This beneficial “DRD Bevek” regime would only remain effective if the (receiving) company pays the minimum managerial remuneration towards the company director. This condition will particularly be important in practice for management companies and SMEs where the company director receives insufficient salary.
The liquidation reserve and VVPRbis regime will be harmonized to the maximum extent. Currently, owners of a company can transfer money from the company to their private assets in a tax-efficient way through the mechanism of a liquidation reserve. The moveable withholding tax rate on liquidation reserves will be increased from 5% to 6,5% (as of 1 January 2026 for newly created liquidation reserves) and the waiting period for a tax favourable distribution will be shortened from 5 years to 3 years. This change will raise the effective rate from 13.64% to 15%, which is similar to the VVPRbis regime. The mechanism of the VVPR-bis regime allows small companies to distribute dividends at a reduced rate. The VVPR-bis regime will remain intact. Early distributions (within the three-year waiting period) will be taxed at the normal moveable withholding tax rate of 30%.
New deduction for self-employed individuals
In an attempt to boost entrepreneurship, a new deduction for self-employed individuals (ondernemersaftrek/déduction pour entrepreneurs) will be introduced. This will allow a self-employed person (in main and secondary occupations) to deduct a first bracket of their profits or benefits (after offsetting tax losses and deducting professional expenses).
Abolishment of the system of tax increases in case of insufficient advance payments
Up to now companies, company directors, one-man businesses and cooperating spouses should better make quarterly advance tax payments towards the Belgian tax authorities, in order to avoid standard tax increases. This system of tax penalties will be abolished for self employed persons with profits or benefits. Moreover, a fifth period will be introduced for advance payments. Those taxpayers who pay by 20 February (of the tax year), will be entitled to a tax bonification (instead of a tax increase).
Reforming the tax penalty policy
The new government will adapt the current approach to imposing tax penalties. For initial good faith errors (first mistakes), an automatic penalty of 10% tax increase will no longer be imposed, but the taxpayer will only receive a notice. Generally, the focus should be on clarification and adjustment rather than sanctioning.
Tax on securities accounts: no increase
Despite previous messages during the government negotiations, the current 0,15% tax rate on securities accounts with balances exceeding 1 million euros will remain unchanged. BDW had proposed to increase this to 0,25%, but that is no longer on the table. However, going forward, the new Federal Government will investigate how evasion of the tax on securities accounts can be dealt with.
Reform of the stock exchange transaction tax
To encourage (sustainable) investments, it is anticipated that the transaction tax on the buying and selling of securities will be modernised and simplified, improving the level playing field between investment vehicles, -companies and funds. Furthermore, the coalition partners agreed to revive the Cooreman-De Clercq law, which was initially introduced in the 1980s to promote Belgian shares among households. The existing tax reductions for start-ups and scale-ups will be integrated into one reduction.
Tax deductibility of hybrid cars: a new hope?
The costs of hybrid (company) cars will remain tax deductible for 75% and this until 31 December 2027. In 2028 these costs will become tax deductible for 65%. Moreover, in 2029 this will be 57,5%. Moreover, fuel costs of hybrid cars will remain tax deductible for 50% until the end of 2027.However, the government will provide an exception to this limited deductibility for hybrid cars with emissions of up to 50 grams/km. If the percentage according to the deduction formula exceeds 75%, the higher percentage may be applied until the end of 2027.As a result, if the company car policy still allows this (because the Belgian company car fleet has been pushed heavily into electrification), employees and company directors may potentially still consider ordering a hybrid (instead of a full electric) company car for their upcoming car swap.
Phase-out of federal interest deduction
The federal interest deduction for the non-own dwelling will be phased out. Throughout the past months, this abolishment has always been part of the proposed tax measures in the Supernote. The federal interest deduction is the only remaining tax benefit related to loans for non-primary residences (when a taxable cadastral revenue is included in the tax return).
Copyrights regime: erasing the Vivaldi effect
Two years ago, under the previous Federal Government (Vivaldi), the beneficial tax regime for copyrights in Belgium was significantly tightened and made less attractive. Moreover, a legal twilight zone was created (who is exactly in scope?), giving rise to a new tax ruling practice. The new Federal Government (Arizona) will neutralise (and thus ‘undo’) the changes of the previous government and return to the copyright regime which existed before 2023, with a flat movable withholding tax rate of 15%, a lump-sum cost deduction and a broad scope of application. Digital professions (e.g. IT-programmers) will again be able to benefit from the reduced tax rate.
Simplification: removal of the burdensome Form 270 MLH
As of tax year 2024 (income of the year 2023) a specific annex to the income tax return was introduced in Belgium, notably the form 270 MLH, triggered by the introduction of article 307, §2/2 of the Belgian Income Tax Code 1992. This relatively new form is a mandatory annex to the annual income tax return for legal entities and natural persons in Belgium who rent real estate or hold real estate rights (leasehold, building right, usufruct). For taxpayers who are natural persons, the reporting obligation is only applicable to the extent that they deduct the rental payments in their individual income tax return. Legal entities are obliged to report regardless of whether they deduct these expenses. The new Federal Government wants to abolish this 270 MLH formality as soon as possible and introduce an alternative which is administratively less cumbersome for taxpayers, taking into account the information which is already available to the tax administration.
Wage withholding tax incentives
The new Federal Government will strive to ensure maximum legal certainty and stability throughout the entire legislative term regarding the scope of the existing exemptions from the remittance of wage withholding tax. For night and shift labour, a system will be implemented after the temporary measure (“bis-variant”) expires to maintain its fundamentals and benefits. The government will consider whether adjustments should be made in function of the possible changes to the nightwork provisions.In general, for all of the exemptions from the remittance of wage withholding tax, the government will conduct a spending review to examine the effectiveness of the outputs.
The current partial exemption from the remittance of wage withholding tax in relation to R&D is essentially a system whereby companies engaged in R&D can reduce their labor costs by retaining up to 80% of the wage withholding tax withheld on salaries paid to certain researchers. This tax measure will be further clarified and qualitative improvements will be made to ensure maximum legal certainty, efficiency, budgetary oversight and stability.The scope of this partial exemption to transfer wage withholding tax will be reformed for research conducted at universities, high schools, university hospitals and scientific research funds. Furthermore, the government will provide clarification on scope of application for recognized scientific institutions by establishing objective criteria and transparent rules.
Key labour market measures with an impact for employers
The Coalition Agreement aims to thoroughly modernise the labour market and the Coalition Note thus also contains a number of labour law measures. An important consideration is that the note explicitly refers to the involvement of the social partners in a number of matters, but also states it will take the necessary measures when they should not come to an agreement on said matters. Below, we list some key items with direct impact for employers and employees.
More flexibility when it comes to working time
Belgian labour law is well known for its strict and complex rules with regard to working time. Over the past few years, there have been some attempts to provide more flexibility to both employers and employees (e.g. the introduction of the four day working week), but in practice we do see that such schemes are in practice hardly implemented by employers because of their procedural complexity. The Coalition Agreement now intends to reform and modernise Belgian labour law in this respect to allow for more flexibility.
As one of such measures, the Coalition Agreement mentions the abolition of the prohibition to perform nightwork as well as of the mandatory closing day. Furthermore, in order to be competitive again with our neighbouring countries, night work in the distribution sector (and related sectors such as e-commerce) would only start at midnight instead of 8 p.m.Several other measures to increase flexibility will be taken. Employers will e.g. no longer be obliged to include all working schedules in the work regulations and an ‘annualisation’ of working time will become possible for both parttime and fulltime employees. Working part-time for less than ⅓ of a fulltime will be possible and there will be a more structural, unified and flexible system on making overtime more (para)fiscal friendly up to 180 hours annually, next to an overall expansion for voluntarily performed overtime without a need for motive nor compensatory rest, whereby part is compensated on a gross for net basis, plus an extra expansion in the catering industry.
Reintroduction of the probation period & termination of contracts
Furthermore, the Coalition Agreement also foresees more flexibility when it comes to the termination of employment contracts. One of the measures that has been announced is the reintroduction of the probation period. This means that it would become possible again for both parties (employers and employees) to terminate the employment agreement with a notice period of 1 week during the first 6 months of the contract.
Additionally, severance payments will be ‘activated’ and moreover limited to 52 weeks for new hires (threshold currently obtained after 17 years of seniority). Next to that, the number of special protection indemnities that can be combined in case of dismissal will be limited. It is however unclear whether the limitation refers to the cumulation of said indemnities or that less situations will be covered by a dismissal protection. In any case it is the intention to limit the protection against dismissal for non-elected candidates at a social election to 6 months.
Long-term illness: sick note
Under the previous government (Vivaldi) a rule was introduced in 2022 allowing employees to stay home sick without the obligation to provide a sick note for the first day of illness up to 3 times a year. This was done to ease the workload for general practitioners (doctors) and reduce the cost of non-urgent consultations. Smaller employers can derogate from this. As part of a policy to combat increased absenteeism, the ability to take up to three sick days per year without a medical certificate will be reformed so that this can only be done twice per year.
Employers must help pay for long-term sick employees
The Coalition Agreement also provides for employers to take responsibility for their long-term sick employees, aged between 18 and 54. Companies, with the exception of SME’s, will become responsible for the payment of 30% of the sickness benefit currently paid to these employees by the government, after the period of guaranteed pay has expired, and this for a period of two months. This will be a part of a whole set of other (reintegration) measures aimed at reducing the number of long-term sick employees, currently at an all-time high.
Extension on student work
Furthermore, the Coalition Agreement foresees several measures to make it easier for students to work. Currently, students are allowed to work 475 hours per year in a (para)fiscal friendly way. This was temporarily increased to 600 hours per year in the last two years. The ceiling will be even further increased to 650 hours and this increase will be made permanent. Moreover, student work will be allowed as of 15 years. Additionally, the tax exemption for income from student work will be doubled and the maximum amount of the net means of existence to be considered dependent will be increased to EUR 12.000.
Flexi-job :
The maximum annual income that a person is allowed to earn with a flexi-job will be increased from EUR 12.000 to EUR 18.000 and the maximum hourly wage will be increased from EUR 17 to EUR 21 (subject to further indexation). Flexi-jobs will be allowed in more industries (opt-out mechanism), and the prohibition of having a flexi-job at a related company will be abolished.
Loan of personnel :
It is the intention, in consultation with the social partners, to expand the possibility of temporary and/or smooth transfer of personnel to another employer. This will be put within the legal framework of temporary employment to guarantee protection. The social partners will be asked to implement temporary agency employment of indefinite duration.
Automatic indexation of salaries: not abolished but subject to review :
The automated indexation of salaries and wage norm is to be reviewed, not to be abolished. It is deemed key to maintain and safeguard the purchasing power of employees. By 31 December 2026, the social partners in Belgium are requested to come up with advice regarding the reform of the system of automatic indexation and wage norm. In doing so, they should investigate a new calibration point in time, taking into account a broader definition of wage costs and the historical handicap which was built up in this respect. This should allow employers to keep their salary costs more at level with competition in neighboring countries. In the meantime the minimum salary will be increased.
Collective bonus systems :
By virtue of the abovementioned tax reform it should again become more interesting to reward employees in cash, rather than via other benefits in kind. The existing collective bonus systems (CBA 90 bonus, profit premium, …) will be simplified and the scope of application will be harmonized, without resulting in additional tax costs for employer and employees.
Flexible reward: legal framework
It is the intention of the new Federal Government to provide a legal framework regarding the system of flexible reward. The idea is to reduce the pressure on gross pay by limiting “salary sacrifices” to a maximum of 20% of the annual gross salary. Additional bonuses can still be awarded on top of the salary. Administrative simplicity is key here.
Reform of the mobility budget
The existing mobility budget will be reformed into a “mobility budget for everyone”. The starting point will be the provision by the employer of a budget where the car, as well as other means of transportation, can be spent on the basis of their actual value. In addition, the new mobility budget will replace existing arrangements for employer interventions in the commuting and private travel of the employee, with the aim of simplifying the existing system.
The new scheme will be treated favourably from a (para)fiscal perspective, to guarantee the attractiveness of this new system. The necessary transitional measures will be foreseen. The mobility budget will be systematically offered, as an option, by employers to employees entitled to a company car.
Status quo for the Belgian stock option and warrants regime
At this point, there seems to be no indication left that changes would be made to the Belgian stock option and warrants regime.
Framework for costs proper to the employer
An interesting point in the Government Agreement is the mentioning that there will be a framework for costs proper to the employer as soon as possible. Please note that this does not concern costs proper to the employer in the framework of the expat regime.
Reinforcing of meal vouchers
In order to increase the purchasing power of their employees, companies will be able to grant meal vouchers with a maximum value of EUR 12, instead of the current maximum of EUR 8 per meal voucher. It has been since 2016 that the ceiling for meal vouchers was increased. Other cheques such as ecovouchers, culture vouchers.. will cease to exist over time.
Pension measures
It is no secret that the overall pension cost in Belgium will increase significantly in the coming decades due to the aging of the population and thus more and more people who will retire. The summit of costs has certainly not yet been reached. Therefore, the new Federal Government recognises that profound structural changes are urgently needed to reform the pension system and ensure a sustainable and equitable system for future generations.
The structural step-by-step pension reform (taking into account acquired rights) will rely on an adequate statutory pension that ensures a basic level of financial security after retirement for everyone. In addition, the link between effective work performance and the accrual of pension rights will be strengthened so that people are rewarded for their work. Furthermore, the new Federal Government will seek harmonization between the different pension systems for employees, civil servants and self-employed individuals to ensure fairness and consistency.
Pension bonus-malus
The current pension bonus will be replaced with a new bonus. For those who continue working beyond retirement age and have 35 career years of 156 days with effective performance and 7.020 effectively worked days, the pension amount will increase with a bonus of 2% (until 2030), 4% (until 2040), 5% (as of 2040) per year of withdrawal after the legal retirement age.
For those who stop working earlier, the pension amount will be reduced as of 2026 by a malus of 2% (until 2030), 4% (until 2040), 5% (as of 2040) per year of early retirement before the legal age, if the retiree meets the career condition for early retirement but does not meet 35 career years of 156 days with effective work performance and 7.020 effective days worked.
Reduction of assimilated periods in the private sector
With respect to the build-up of legal pension rights for employees, the equalization of non-working periods (with working periods), will only be retained where this is socially justified, such as for periods of sickness, maternity and parental leave and for the various care leaves, but will be reduced for periods of e.g. bridge pension (SWT), long-term unemployment and landing jobs.
Focus on longer careers, but what about early retirement?
As of 1 January 2027, employees will be given the possibility of early retirement from the age of 60, provided they have accumulated a career of at least 42 years with sufficient actual work performance. In this respect, only the years during which at least 234 days of effective days were worked, will count for measuring the required career length. As a result, early retirement is made accessible for those who started working early in life and have built-up a long career.
Minimum pension :
Going forward, the eligibility for the minimum pension will be based on effective work performance and career years performed in the 3 systems combined (for employees, civil servants and self-employed workers).
Reinforcement of second-pillar complementary pensions
In addition to a strong first pillar statutory pension, the new Federal Government wants to offer all employees (including those working under employment contract in the public sector), a decent supplementary pension for which an employer contribution of 3% is provided by 2025 at the latest.
Furthermore, the new Federal Government will explore how a disadvantageous tax treatment can be avoided when taking out supplementary pension in the form of an annuity (versus a lump-sum capital payment which is taxed beneficially).
Increased solidarity contribution on high pension capitals
The new Federal Government will increase the solidarity contribution on pension capitals, whereby this increase will only apply to the portion of the capital which exceeds a threshold of EUR 150.000.
Simplification of the second pension pillar for self-employed individuals
The different regimes in the second pension pillar for self-employed individuals (VAPZ/PCLI, IPT/EIP, POZ/CPTI) will be harmonised and simplified. Moreover, in this respect, the 80%-rule (for pensions built up in a supplementary pension plan) will be reformed.
The rules that allow self-employed persons to build up an additional pension will be simplified. The maximum contribution percentage of the classic Free Supplementary Pension for Self-Employed individuals (VAPZ/PCLI) will increase from 8,17% (of the net taxable income) to 8,5% as of 2026. The maximum contribution rate for the Social Free Supplementary Pension for Self-Employed individuals (SVAPZ/PCLI sociale) will be adapted accordingly.
The new Federal Government will ensure that self-employed individuals in a secondary profession can contribute to the Free Supplementary Pension for Self-Employed Individuals (VAPZ/PCLI) as of 2026. In doing so, equal conditions will be guaranteed between self-employed in a secondary occupation and those who exercise their self-employed activity as their main occupation.
Earning extra income while retired
Those who are retired and still wish to earn additional income after a full 45-year career will be able to count on a more beneficial tax treatment, notably a liberating tax of 33%.
Unemployment with employer complement only in limited cases
The system of unemployment with employer complement (former bridging pension scheme) will, going forward, only be allowed in case of a medical SWT regime, as well as for employees employed by companies who have stated their intention to restructure or proceed with a collective dismissal prior to the date of the Coalition Agreement. Periods in this system will be equalised for pension purposes but based on a limited fictitious salary.
End of career jobs
End of career jobs (part-time work ½ or ⅘) in the private sector remain possible for employees as of age 55, if they can prove a career of at least 30 years (with a minimum of 156 days worked each of those years). This condition will be gradually increased to 35 years in 2030. Periods in this system will be equalised for pension purposes but based on a limited fictitious salary.
General remarks :
The new coalition informed the country of its intent to implement ‘the strictest migration policy of all time’. The new Belgian government aims to focus on labour and student migration, seeking a balance between supporting those who need assistance and ensuring that migration adds value to the Belgian labour market. We will highlight the key changes in labour migration, family reunification, obtaining Belgian nationality, integration requirements, and student migration as these are the most relevant topics from a global mobility perspective.
Labour Migration
The government is committed to improving the single permit procedure by streamlining processes and reducing processing times. At the same time, measures will be introduced to protect workers from social violations by their employers. Further digitalization of procedures is being considered, along with simultaneous processing by both the Regional and Immigration authorities to enhance efficiency.
Family Reunification
This is one of the most important immigration routes to Belgium, but according to the Coalition Agreement, it has too many shortcomings. However, the government aims to strengthen integration efforts and reduce the risk of poverty among individuals entering Belgium through the family reunification procedure. In light of the above, the family members of third-country nationals residing in Belgium will only be able to apply for family reunification after completing a defined waiting period, which will vary depending on the family construction. Highly skilled students and labor migrants will be exempt from this waiting period when applying for family reunification.
Nationality Requirements
Individuals seeking to obtain Belgian nationality will be required to pass a nationality exam, which will consist of two components:
Additionally, the fee for the nationality declaration will be increased to EUR 1,000, with future adjustments based on indexation.
Integration Obligations
A third-country national will be required to sign a newcomer statement when submitting a visa or residence application. This statement emphasizes the State’s neutrality and the principle of gender equality. Failure to sign the newcomer statement, comply with its principles, or demonstrate sufficient integration efforts may result in the refusal or revocation of a visa or residence permit. The Coalition Agreement does not foresee any exceptions to this obligation, meaning that labour migrants may also be required to sign the newcomer statement.
Student Migration
To attract international talent, the government plans to introduce faster procedures for student visa applications, acknowledging the war for talent. However, the pledge of financial support option will be restricted, requiring students to provide direct proof of sufficient financial means instead.Furthermore, the rules concerning standing surety for third-country nationals coming to Belgium for study purposes will be more strict in the future. An individual can only agree to stand surety for one student and said individual must be either a Belgian national or an individual holding a permanent residence permit and living in Belgium.
What’s next?
The time to act has come and there is no time to waste. The new Belgian Federal Government, De Wever I, will for sure face its own institutional, budgetary, economic, demographic, environmental and geopolitical challenges during the coming 5 years. To quote the new Belgian Prime Minister, Bart De Wever: “the journey ahead will not be a walk in the park”.
Taking into account the above, we can already expect an avalanche of new legislation, touching amongst other fields taxation, labour market and pensions. For example, significant tax policy changes are anticipated… Of course, it remains to be seen how and when the proposed measures will be enacted and implemented, as this will need to go through the parliamentary process before it can really become text of law.
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
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