Belgium's Special Tax Regime for Inbound Taxpayers

Effective January 1, 2022, a new special tax regime came into effect for inbound employees and researchers working in Belgium.

Eligibility Criteria

To qualify for the regime, the following conditions must be met:

The employee or company director must:

Be hired directly from abroad by a company (or its establishment) registered with the Crossroads Bank for Enterprises, for the purpose of carrying out a taxable employment activity in Belgium; or
Be seconded to Belgium by a foreign company within a multinational group to one or more affiliated companies (or establishments) registered with the Crossroads Bank for Enterprises, also for the purpose of performing taxable work in Belgium.

A minimum annual gross remuneration of EUR 75,000 is required. This threshold does not apply to researchers. The treshhold of EUR 75.000 has been reduced to EUR 70.000 as from income year 2025.
The individual must not have had any prior ties with Belgium in the 60 months preceding the employment start date. This means:

No taxation as a resident or non-resident on professional income in Belgium;
No residence within 150 kilometers of the Belgian border.

Key Advantages

Eligible employees under this regime can benefit from the following:

The employer may provide a tax-free cost allowance ("cost proper to the employer" or CPE) of up to 30% of the gross salary, with a maximum of EUR 90,000, without the need for supporting documentation. As from income year 2025:

The maximum CPE percentage has been increased to 35%; and
The limit of EUR 90.000 has been abolished

This 30% allowance is exempt from Belgian social security contributions for both the employer and the employee.
In addition to the flat-rate CPE allowance, certain specific expenses can also be reimbursed tax-free if properly documented. These include:

Moving and relocation expenses,
One-time furnishing expenses (up to EUR 1,500 in the year of arrival),
School fees for children aged 5 and above, limited to compulsory educational costs.

Duration and Continuity

The regime applies for an initial period of 5 years from the start of Belgian employment. It can be extended for an additional 3 years, provided all original conditions continue to be met.

The tax regime may still apply even in the event of a change in employer, as long as all other eligibility requirements are satisfied.

Tax Residency

By default, individuals benefiting from the regime will be considered Belgian tax residents, requiring them to declare their worldwide income in Belgium.

However, it remains possible to claim non-resident tax status if the individual can present a valid annual certificate of tax residency from another jurisdiction. Furthermore, any applicable double taxation treaties can be invoked to avoid taxation on the same income in both countries.

Administrative Formalities

To activate the regime, the following steps must be taken:

An application must be submitted by the employer (with the employee's consent) within three months of the employment start date.
An annual list of all beneficiaries must be submitted by January 31 of the following year (specific format and details pending confirmation).

A new application will be required in the event of an extension beyond the initial five-year term.