Relaxation of the current expat status
The following tax adjustments apply retroactively from 1 January 2025:
- The tax‑exempt costs proper to the employer may amount to 35% of the annual taxable gross salary, instead of 30%.
- The ceiling for costs proper to the employer has been removed. Previously, this cap amounted to 90,000 euros.
- The minimum annual gross remuneration for employees who are not researchers has been reduced from 75,000 to 70,000 euro.
Employees who already fall under the expat status can also make use of the new and more favourable regime.
This creates opportunities for existing remuneration packages, and a re‑evaluation of the compensation package in light of these changes is therefore advisable.
Please note: social security does not follow the relaxations
Please note that the Belgian social security authorities (RSZ/ONSS) do not follow the relaxations regarding employer‑borne costs. For social security purposes, the exemption remains (for now?) limited to 30% and a maximum of 90,000 euro. The Belgian National Social Security Office (NSSO) has also confirmed in its instructions that it accepts the reduction of the minimum gross annual salary to 70,000 euro.
Extra attention in the year of recruitment
“New” expats arriving in Belgium generally are not entitled to holiday pay or a year‑end bonus. As a result, achieving the minimum remuneration during the first year of employment in Belgium may be challenging.
Since failure to meet the minimum remuneration requirement leads to a loss of expat status, it is crucial that the taxpayer concerned meets the 70,000 euro minimum remuneration requirement at all times (except for researchers).
Time for action?
The new rules offer opportunities but require a careful approach. We would be happy to review this together with you.
