In order to make Belgium more attractive to talented workers from abroad, the government wants to adjust the special tax system for incoming taxpayers and researchers. A bill was therefore introduced for that purpose.
This scheme, intended for employees and researchers coming to Belgium to work temporarily, offers employers a tax-free, fixed-rate reimbursement of costs specific to the employment. Until now, that fixed rate amounted to 30% of the gross annual salary, up to a maximum of €90,000. A minimum salary of €75,000 also applied to incoming taxpayers. There was no salary limit for researchers, but strict requirements applied with regard to their degree qualifications and the use that was made of their time. Both schemes could be used for up to five years and possibly extended for three years, after submitting a formal application within three months following commencement of employment.
Practical experience has shown that since the reforms in 2022, the new system was too strict and made it difficult to recruit people from abroad. That is why the federal government has been relaxing some of the rules since 1 January 2025:
- The reimbursement of expenses is being increased from 30% to 35%;
- The ceiling of €90,000 per year will be abolished;
- The minimum salary is being decreased from €75,000 to €70,000 gross per year (not in the case of researchers, as no minimum salary applies to them).
These measures are intended to make the tax regime more balanced again. The new terms should already apply to reimbursements granted from 1 January 2025 onwards.
The text has since been approved in parliament and we are waiting for it to be published in the Belgian Official Gazette.
Would you like to learn more about this status for foreign workers (expats) or do you need help submitting an application to the tax authority? If so, do not hesitate to get in touch with us via payroll@crowespark.be.
