Belgium's revamped expat regime: simpler, more transparent and attractive

Attracting and retaining international talent is becoming increasingly important for Belgian companies. The legislator responded to this with a thoroughly reformed expat regime (special tax regime for incoming taxpayers and researchers), which has been greatly simplified in recent years.

The most recent changes, which took effect retroactively on Jan. 1, 2025, also make the system even more interesting. In this article, we will tell you what has changed and how you can benefit from the expat regime.

1. The old expat regime: complex and difficult to apply

The former expat regime, which had its origins in a 1983 administrative circular, was known ascomplex, technicalanddifficult to apply.

The core of the system consisted oftax fictions, such as:

• the assumption that the expat was not a Belgian tax resident, even with actual presence;
• The exclusion of foreign working days through the so-called travel exclusion;
• tax equalization and tax protection mechanisms.

This led to highly complex individual calculations, an ongoing need for recalibration (changes in travel behavior, family situation, job function, tax-free allowances under expat status, etc.) and significant implementation and follow-up costs.

Moreover, its correct application required specialized software and in-depth fiscal engineering. As a result, the system remained in practice primarily formajor multinationals.

Therefore, a new system was introduced in 2022. That system is now being further refined and relaxed. The result?A much simpler, more transparent and attractive expat regimefor Belgian employers.

2. The current expat regime: simpler and more attractive

2.1. Who is eligible?

The regime is designed for:

• employeesandbusiness leaderswho are recruited or seconded from outside Belgium;
• researcherswho meet specific diploma or experience requirements.

Important criteria include:

• No tax residence in Belgiumor have been subject to non-resident (Belgian) tax on professional income in the previous five years;
• no residencewithin 150 kmof the Belgian border in the five years prior to employment;

The nationality of the employee is not a factor.

2.2. How does it work?

The ‘special tax system for inbound taxpayers and researchers,’ a new system introduced Jan. 1, 2022, allows employers, in addition to contractual wages,tax-free allowancesTo be granted as reimbursement ofcosts proper to the employer.

With the December 2025 law change, the regime becameeven more appealingmade. The result is a more accessible and simpler expatriate system for both employers and employees.

The current expat regime is made up of3 key elements:

Minimum wage

• With the introduction of the new expat regime in 2022, a minimum wage of €75,000 gross per year was imposed on expats who are not researchers.
• Starting Jan. 1, 2025, the legislature is lowering the entry threshold to€70,000 gross/year.
• Thus, more middle and senior profiles will be eligible, especially in sectors where salaries hover around that level. In fact, practice shows that a lot of expatriates became ineligible due to the high minimum wage limit.
• For researchers, nothing changes: their access depends on degree or experience and a position with sufficient R&D focus, not on salary.

Maximum tax-free expense allowance

• Since 2022, employers could grant up to 30% of gross annual salary tax-free as reimbursement of expenses proper to the employer. This percentage applied both fiscally and socially, as well as applied on top of wages.
• As of Jan. 1, 2025, this rate increases from 30% to35%, significantly increasing the net benefit to expatriates or further reducing the cost of a total expatriate pay package.

Annual ceiling

• The tax-free expense allowance in 2022 was limited not only by the percentage but also by alimit of €90,000 per year. That made the system less interesting for higher profiles, technology sector expats or international executives.
• As of Jan. 1, 2025the ceiling of €90,000 disappears completely. This increases competitiveness relative to other countries with no ceiling. Especially for companies that need to fill international leadership roles, this is an important change.

2.3. When do the changes go into effect?

Changes signed into law in December 2025 apply retroactivelyas of January 1, 2025.

For employees who started in Belgium between Jan. 1, 2025 and Jan. 9, 2026, and who fell just short under the old rules, the following applies:

• new deadline for application: no later than April 9, 2026
• condition: at least €70,000 gross annual salary
• contract must be adjusted

This once again opens the door for talent that previously fell by the wayside.

3. Attention: difference between tax authorities and NSSO

Although the tax law now allows 35% of gross annual salary as the maximum tax-free expense allowance,the NSSO is not following this (for now). Although lobbying on this is still in full swing.

That creates a duality:

• first 30%: exempt from tax and NSSO
• additional 5%: exempt from tax, but (possibly) not from NSSO

This can lead toadditional complexityin your payroll, as long as the NSSO does not harmonize its position with the tax adjustment.

Conclusion

The Belgian expat regime today is amore accessible strategic toolfor companies looking to attract international talent.

Thanks to simplification, thenot an exclusive niche toolmore, but a viable option for many more employers.