Global Mobility Tax

Belgium | Expat regime — legislation voted!

Summary

Very recently, the law on miscellaneous provisions was voted on; the final text is still to be published in the Belgian Official Gazette. This new legislation brings important changes to the Belgian expat regime (one of many measures – more news to come).

As mentioned in previous news updates, the purpose of this law is to enhance the attractiveness of the Belgian special tax regime for incoming taxpayers and researchers, in order to attract (and retain) international talent in Belgium.

The detail

The changes under the new legislation include:

• An increase of the annual maximum percentage for tax-free recurring costs proper to the employer, notably from 30% to 35% (payable on top of the qualifying gross remuneration)
• The abolition of the absolute cost ceiling of EUR 90.000 per year for these recurring costs proper to the employer
• A reduction of the minimum annual gross remuneration requirement from EUR 75.000 to EUR 70.000 (for incoming taxpayers)

It is important to note that these changes will apply retroactively as from income year 2025. In anticipation of the publication of the final text of law, timingwise, this triggers of course various practical considerations, as the year is closing and most 2025 year-end payroll calculations have been made. Moreover, in many cases, the implementation of the new rules will also have an impact on the underlying contracts/assignment letters and subsequent annexes.

Incoming taxpayers who started working in Belgium between 1 January 2025 and the 10th day following the (upcoming) publication of the new legislation in the Belgian Official Gazette, and who met all conditions for the expat regime except for the minimum annual gross salary threshold of EUR 75.000, will exceptionally still be able to submit an application towards the Belgian tax authorities for the application of the expat regime (assuming they meet the adjusted minimum annual gross salary of EUR 70.000). They will only be able to do so within a 3-month window, as from the 10th day after the publication of the text of law in the Belgian Official Gazette.

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

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