On 6 April the legal portal Lexgo published Circular 2026/C/51, through which Belgium’s tax authority clarifies sweeping improvements to the special expatriate regime for inpatriate employees and researchers. Key fiscal perks—including a tax-free allowance that rises from 30 % to 35 % of gross pay and the removal of the €90,000 annual cap—apply retroactively to 1 January 2025. Importantly, employers may amend existing contracts up to 30 June 2026 to apply the new parameters, provided labour-law formalities are observed. The minimum salary threshold for the standard inpatriate track (BBIB) drops from €75,000 to €70,000, making the scheme accessible to a wider pool of mid-senior specialists. PwC Belgium, which helped draft the guidance, notes that payroll departments must issue corrective payslips and wage-tax returns when back-dating benefits. While the fiscal changes increase Belgium’s attraction for mobile talent, the National Social Security Office has yet to align fully: it still caps the allowance at 30 % even though it now recognises the lower salary threshold. The resulting mismatch means some employers could face higher social-security contributions unless further harmonisation is secured. Global mobility managers should run scenario analyses before retroactively lowering headline salaries; in some cases, the higher tax-free allowance may outweigh social-security differentials, but not always. Companies bringing staff on short notice for EU projects may also see faster work-permit approvals, as regional authorities treat the improved regime as evidence of Belgium’s commitment to talent competitiveness.
Source: Lexgo
