In previous articles we discussed and commented on the (new) special tax regime for expats in Belgium. As you may recall, the current tax regime was introduced by the Programme Law of 27 December 2021 and has applied since 1 January 2022 (with transitional measures for expats still benefiting from the former expat regime – the “1983-regime”). We bring you the latest changes introduced by the Law of 18 December 2025.
'The system allows employers—provided the conditions are met—to grant tax free and social security free allowances as reimbursements of costs proper to the employer. These tax free allowances are to be paid on top of the contractual salary.'
What is the Expat Tax Regime?
The Belgian Expat Tax Regime allows employers—provided the conditions are met—to grant tax free and social security free allowances as reimbursements of costs proper to the employer. These tax free allowances are to be paid on top of the contractual salary. The idea is to make recruitment of foreign high potentials more attractive to employers and expats alike.
We’ve previously covered the Expat Tax Regime in New year, New Tax Regime for Expats (2021) and Final Curtain for the 1983 Expat Tax Regime (2023). Please click on the links for a more in-depth view on the matter.
Two Distinct Categories
The full name of the current regime is the “tax regime for inbound taxpayers and inbound researchers”, as it distinguishes between two categories:
- Inbound taxpayers: BBIB/ RSII (NL: Bijzonder Belastingstelsel voor Ingekomen Belastingplichtigen, FR: Régime Spécial d’Imposition pour les Impatriés;
- Inbound researchers: BBIO/RSICI (NL: Bijzonder Belastingstelsel voor Ingekomen Onderzoekers, FR: Régime Spécial d’Imposition pour les Chercheurs Impatriés).
Key Regime Characteristics
Nationality: does not affect eligibility for this special tax status, however, during 60 months (5 years) prior to the start of employment in Belgium:
– one should not have been considered a Belgian tax resident;
– one should not have lived within 150km from the Belgian border;
– one should not have been subject to Belgian non-resident tax in respect of Belgian source professional income.
Eligible Employers: any employer with a company number can hire an expat under the special tax regime for expats, provided the conditions mentioned are met;
Tax Residency: expats who obtain the expat status (and their family) are subject to the normal rules on tax residency. Expats living in Belgium with their family are treated as Belgian tax residents. If the home state continues to consider the expat (and their family) as tax residents, Belgium will treat them as tax non-resident upon the condition of providing an annual tax residency attestation; this means that double tax treaties have full application under the current expat tax regime;
Time Limit: there is a time limit on the current expat status: there is an initial period of 5 years, with a possibility for an extension with 3 years (maximum of 8 years);
Change of Employer: changing employers in Belgium does not automatically result in the loss of the expat status; the new employer will have the possibility to also make an application for the expat status, but there will be no new 5-year term (as the eligibility starts as from the first employment date in Belgium, even with a change of employer, this date remains the anchor point);
Eligible Persons to the regime are still key functions/executives and researchers, though there are some special conditions which are different for the two categories of expats as defined under the expat regime:
BBIB/ RSII – for inbound taxpayers (employees or company directors):
– the expat must be recruited directly from outside Belgium or seconded to a Belgian employer;
– and earn a minimum yearly gross salary of €70.000 which is taxable in Belgium (excl. of the 30% cost allowance – see further);
BBIO/RSICI – for researchers (employees only):
– the expat must be recruited directly from outside Belgium or seconded to Belgium (see above);
– no minimum salary level;
– the expat needs to qualify as researcher: alone or in group, at least 80% of working time is research time (as defined in the law) and must hold a qualifying diploma or at least 10 years equivalent experience (diploma = doctor or master-level in defined science domains).
Employee Benefits: the expat is entitled to following benefits under the current expat status:
– tax free allowances as reimbursement of costs proper to the employer up to 35% of the gross salary (no cap) paid on top of the contractual salary;
– the employer’s engagement to use the ‘30% system’ to reimburse costs cannot be used to reach the €70.000 minimum salary.
Three Important Changes
CHANGE 1: the minimum annual gross salary is reduced from the previous €75.000 to €70.000 EUR;
CHANGE 2: the maximum tax-free allowances the employer can pay is increased from 30% to 35% of the gross salary;
CHANGE 3: the annual amount of tax-free allowances (previously set at €90.000) is no longer capped.
Entry into Force
In respect of these changes, it is important to provide further information on the entry into force of the changes as the three changes mentioned above are “retroactively” applicable as from 1 January 2025.
For employers who hired someone between 1 January 2025 and 9 January 2026 – who did not previously qualify but now do under the amended rules – the deadline for filing an application will not be the normal 3 months as of arrival in Belgium, but 3 months as of the 10th day after publication of the law in the Belgian State Gazette:
- Publication in the Belgian State Gazette: 30 December 2025
- Application deadline: 9 April 2026
In other words: if you’ve hired someone between 1 January 2025 and 9 January 2026, you still have time to apply for the Expat Tax Regime providing your employee meets the new requirements.
Social Security Treatment
A final noteworthy point of attention is the social security treatment of the expat’s tax-free allowances.
As you may remember from previous articles, the tax free allowances paid in application of the special tax regime are exempt from social security contributions (employee and employer’s contributions).
Surprisingly, the Belgian social security authorities have announced (‘Instructions for Employers‘ – 2025/4) that the Royal Decree of 28 November 1969 – which holds the current exemption of social security contributions for tax free allowances paid under the expat status – will not be aligned with the changes recently brought to the expat tax regime under tax law.
This means the exemption of social security contributions remains to be applied on the above-mentioned maximum 30% cost allowances capped at €90.000 on yearly basis.
Still feeling lost? ABRA’s Tax & Legal experts are at your service, or reach out directly to this article’s author Brigitte Lievens.
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