Global Mobility Tax

Belgium | New legislation freezes fiscal amounts

Summary

Last week, the law on miscellaneous provisions was voted on. This new legislation brings important changes to the Belgian expat regime, and it is a game changer with respect to family taxation (see our previous posts). Moreover, for certain tax benefits the brakes are hit because the typical annual indexation will be frozen at the level of the amounts applicable for assessment year 2025 (income year 2024).

The detail

Changes ahead: Freezing of certain fiscal amounts

The federal government wants to freeze the indexation of certain tax benefits at the level of the amounts applicable for tax year 2025. It wants to maintain this freeze up to and including tax year 2030 (income of 2029). Based on the newly adopted legislation, this list includes the following tax benefits:

• The exempt first tranche of income from regulated saving accounts (EUR 1.020 for tax year 2025)
• The exempt portion for dividends (EUR 833 for tax year 2025)
• The exempt first tranche of interests from companies with social purpose (EUR 200 for tax year 2025)
• The amount of loans granted to starters via a crowdfunding platform (EUR 16.270 for tax year 2025) of which the interests are exempted
• The tax basket for the federal long-term savings tax benefit (EUR 2.450 for tax year 2025)
• The tax benefit for the acquisition of employer shares (EUR 820 for tax year 2025)
• The tax benefit for gifts (minimum gift: EUR 40 / maximum gift: EUR 408.130 for tax year 2025)
• The tax benefit for pension savings (however the freeze of the indexation for pension savings will be postponed until tax year 2027 (income of 2026). To avoid that, this will affect the tax reduction for the amounts that were already saved by taxpayers in 2025. As a result, the maximum amount will be frozen at the level for tax year 2026, i.e. EUR 1.050 (for normal pension savings at 30%) and EUR 1.350 (for increased pension savings at 25%).
• The maximum amount of the commuting exemption, for commuting (between home and work) by means of transportation other than public transport or collective transport organised by the employer, will only skip one indexation (and will thus be frozen for one year).
• The maximum amount of the tax credit for dependent children will be permanently frozen at EUR 550 (limit for tax year 2025).

This is not a completely new measure, as it concerns the same items for which the indexation had been frozen during the tax years 2021 up to 2024.

The new freeze period will be applied for tax years 2026 (income of 2025) up to 2030 (income of 2029). Consequently, new indexations may again take place as of tax year 2031 (income of 2030), however without making up for the freeze period of tax years 2026-2030.

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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