Belgian Expat Regime becomes more attractive under new rules

Belgian Expat Regime: Key Facts

Expats – officially referred to as “incoming taxpayers” (BBIB) and “incoming researchers” (BBIO) – benefit from a special Belgian tax regime that was thoroughly reformed by the tax authorities and legislator in 2022. This status is intended for foreign employees/company directors and researchers temporarily working in Belgium and is subject to specific conditions: the recruitment must be linked abroad, the individual must have had no ties with Belgium during the 60 months prior to taking up employment, and for BBIB a minimum gross annual salary of EUR 75,000 applies (for BBIO there is no salary requirement, but there are specific diploma or experience criteria and a requirement to devote at least 80% of working time to research activities).

The regime allows employers to grant a tax-free lump-sum expense allowance of maximum 30% of the gross salary (capped at EUR 90,000). Additionally, certain exceptional expenses such as relocation, housing set-up, and school fees can be granted, provided they are supported by documents. The application must be submitted digitally within three months of starting employment in Belgium; late submissions are definitively inadmissible.

Changes to the Expat Regime

With the publication of the Law on Various Provisions in the Belgian Official Gazette, the tax system for incoming taxpayers and researchers is retroactively amended as of 1 January 2025.

From a fiscal perspective, the regime is relaxed. What are the changes exactly?

• The percentage of tax-free employer-provided expenses increases from maximum 30% to 35% of the gross remuneration.
• The annual cap of EUR 90,000 is abolished.
• For the special tax regime for inbound employees (BBIB), the minimum gross remuneration is lowered from EUR 75,000 to EUR 70,000. For inbound researchers (BBIO), there remains no minimum salary requirement, but a diploma requirement applies.

It is important to note that these relaxations apply only for tax purposes. For social security, the rules in effect on 1 January 2022 remain applicable which entails an additional complexity when processing the special tax regime.

With the changes to the expat regime as of 1 January 2025, “being prepared is half the work.” Companies are well advised to act promptly: identify employees now eligible under the new threshold (those with gross salaries between EUR 70,000 and EUR 75,000), adjust remuneration packages so that the 35% tax-free allowance is correctly applied, and update employment contracts and HR documentation. This ensures you benefit from the fiscal advantages while remaining fully compliant.

Should you have any questions regarding the impact of these updates on your organization, we are happy to review your situation with you.