Legal news
Belgium - The special tax regime for expatriates
1. Expatriates are now impatriates
For nearly 40 years, Belgium attracted foreign workers through a special tax regime for expatriate executives, known as “expats.” Approximately 20,000 executives and researchers benefited from this special tax regime until 2022.
Under the former regime, employers could provide tax-exempt allowances, but most importantly, the employee was considered a non-resident. They were not taxed in Belgium on the portion of their remuneration related to days worked abroad. Additionally, as a non-resident, they were not required to declare foreign-sourced income to the Belgian tax authorities.
In 2023, this regime, based on a 1983 administrative circular, was replaced by a new regime for “impatriate taxpayers and impatriate researchers” integrated into the Belgian Income Tax Code.
2. Conditions
2.1. No Prior Connection to Belgium
During the 60 months prior to their arrival in Belgium, the expatriate must :
- not have been taxed as a resident in Belgium.
- not have lived within 150 km of the Belgian border.
- not have been taxed as a non-resident on Belgian-sourced professional income.
Additionally, the expatriate must :
- have been recruited from abroad by a resident company, a Belgian branch of a foreign company, or a non-profit organization, or
- have been seconded/transferred to Belgium within a multinational group or a non-profit organization.
2.2. Minimum Remuneration Threshold : €75,000
The minimum annual salary required is €75,000. This threshold includes gross salary, variable remuneration, benefits in kind and bonuses, before deduction of the social security contributions. Any expenses covered and reimbursed by the employer are not included in this calculation. For an incomplete calendar year, the threshold is reduced pro rata temporis.
This threshold will be lowered to €70,000 in the coming months.
Exception for Researchers : the minimum salary threshold does not apply to researchers who meet one of the following conditions :
- They hold a master’s degree in fields such as agronomic sciences, applied sciences, industrial sciences, medical sciences, natural sciences, pharmaceutical sciences, veterinary sciences, or engineering.
- They have at least 10 years of proven experience in these fields.
Additionally, researchers must dedicate at least 80% of their working time to research activities.
Note : This exception does not apply to independent company directors.
3. Benefits of the New Regime
3.1. Employer-Specific Costs
Employers can reimburse or cover additional recurring costs related to expatriation (e.g., cost of living or housing) without these being considered taxable income. This tax- and social security-exempt reimbursement is capped at 30% of gross remuneration.
These exempt reimbursements cannot exceed €90,000 per year or reduce the portion of income subject to social security contributions below the €75,000 threshold.
Reimbursement is made on a flat-rate basis ; no supporting documentation is required.
The 30% rate will increase to 35%, and the €90,000 cap will be removed, allowing impatriates earning over €300,000 to receive higher reimbursements.
3.2. School Fees, Moving, and Installation Costs
Reimbursement of international school fees, as well as moving and installation costs, can also be covered as employer-specific costs, in addition to the 30% limit.
4. Procedure and Maximum Duration
The expatriate must apply for the regime within three months of starting their activity in Belgium.
Employers must annually (by January 31) provide a list of employees and directors who benefited from the special tax regime during the previous year.
The new regime is granted for a period of five years, with a possible three-year extension under certain conditions. It is no longer limited to a single employer.
5. Tax Residence
Unlike under the previous regime, the standard Belgian rules for determining tax residence apply.
If an expatriate cannot be considered a Belgian tax resident under national legislation, they must provide the Belgian tax authorities with a certificate of residence from their state of residence.
Belgian tax resident status means that expatriates covered by the special tax regime are liable to tax in Belgium on their worldwide income, if applicable. They are also covered by Belgium’s double taxation treaties.