Belgium has for a long time maintained a reputation as one of the countries with the highest tax burden on labor in Europe. To remain competitive and attractive to foreign talent and highly skilled professionals, the government recently established a favorable tax regime for expats.
Following a transition period, a new statutory expat regime took full effect on January 1, 2024, replacing the former administrative system. While initial adjustments seemed less advantageous, recent legislative changes and administrative clarifications have significantly improved the appeal of the Belgium expat tax regime.
The new expat regime
The Program Law of December 27, 2021 successfully replaced the former administrative expat tax system with a new statutory framework. Thanks to a transitional arrangement, both systems were able to coexist until the end of 2023. Since January 1, 2024, only the new regime has been in effect.
The current framework distinguishes between two categories:
- The special tax regime for incoming taxpayers (BBIB),
- The special tax regime for incoming researchers (BBIO).
Both regimes apply to incoming taxpayers and researchers who have started working in Belgium on or after January 1, 2022. While the new framework offers greater legal certainty, early iterations faced criticism as less favorable than the old system in certain aspects. This was primarily due to:the introduction of a minimum remuneration threshold for the BBIB, and the limitation on employer-specific expenses that could be added to the remuneration.
Recent relaxations to the expat tax regime
As part of the Easter Agreement, the regime was relaxed through the Act of December 18, 2025.
These changes were introduced after the business community and international employers criticized the limited attractiveness of the new regime. With this reform, the legislature aims to make Belgium more competitive again, which will result in attracting foreign talent and international expertise.
Reduction of the minimum gross taxable income threshold for the BBIB
To qualify for the BBIB, an employee or executive originally had to receive an annual gross taxable income of more than 75,000 EUR for work performed in Belgium.
That threshold has now been lowered to 70,000 EUR. In addition, it has been stipulated that this amount may be adjusted every three years based on the smoothed health index.
When calculating this compensation:
- The gross annual salary before deducting social security contributions is used as a basis.
- Excluded payments include severance compensation, temporary wage loss indemnities,, and exempt remuneration under Article 38 of the WIB92.
- Discretionary bonuses lacking certainty at the time of the BIBB application are excluded.
- For split-payroll employees, only the portion of compensation corresponding to work actually performed in Belgium counts toward the threshold.
- Note: This minimum wage requirement does not apply to the BBIO. For the BBIO, a degree requirement is sufficient. Furthermore, the BBIO is restricted strictly to employees rather than company executives.
Higher flat-rate expense allowance and removal of the cap
A core component of the tax benefits for expats in Belgium involves employer-provided allowances. A key advantage of both the BBIB and the BBIO is that the employer can grant a tax-free and social security contribution-free flat-rate expense allowance of 35% on top of the salary. Until recently, this allowance was capped at 30% of the gross salary, with an absolute ceiling of 90,000 EUR per year.
These allowances are now considered to be a reimbursement for expenses specific to the employer and may include:
- one-time expat relocation costs;
- expenses for furnishing a primary residence in Belgium;
- school tuition fees for children;
- other recurring expenses directly resulting from professional relocation in Belgium.
Administrative clarifications on the expat regime
Published on April 1, 2026, Circular 2026/C/51 provides additional explanations regarding the new relaxations:
- The minimum remuneration of 70,000 EUR, effective January 1, 2025, must be calculated on a pro rata basis in the year of arrival, departure, or termination of the regime, depending on the number of days during which the conditions of the regime were met;
- The abolition of the 90,000 EUR ceiling automatically means that the pro-rata allocation based on that ceiling is also eliminated. Thus, it no longer applies to the recurring costs specific to the employer, both under the BBIB and the BBIO.
- Existing participants can adjust their employment contracts retroactively until June 30, 2026, to adopt the 70,000 EUR threshold or apply the uncapped 35% expense allowance.
- Taxpayers who began employment between January 1, 2025, and January 9, 2026, were granted an extended deadline until April 9, 2026, to submit their BBIB applications.
On the other hand, the Act of December 18, 2025, provides for the retroactive submission of an application for the application of the BBIB for new hires.
Taxpayers who began employment in Belgium between January 1, 2025, and January 9, 2026, were exceptionally permitted to submit an application for the expat regime until April 9, 2026. This constituted a deviation from the normal application deadline of three months after the start of employment.
New tax regime for expats in Belgium: Conclusion
With these legislative changes, the Belgian expat tax regime has once again become significantly more attractive and competitive in the European market, both for the employees and the companies looking for international talent.
LexQuire provides expert legal guidance for expats and businesses looking to identify and implement the relevant adjustments regarding the expat tax regime in Belgium. Feel free to contact one of our specialists.
