Reform of the special regime for inpatriates: more flexibility and removal of the overall annual cap
The special tax regime for inpatriates is being overhauled. The draft law of 3 July 2025, together with the amendment of 16 September 2025, aims to simplify the rules and ease certain financial constraints. With the removal of the overall annual cap, a lower minimum remuneration threshold, and the introduction of transitional measures, the new framework brings several important changes. Below is an overview of the key updates to anticipate.
What does the regime look like today?
The special regime for inpatriates (in force since 1 January 2022) allows part of the gross remuneration to be treated as costs proper to the employer. This portion is excluded from the taxable base and is not subject to social security contributions.
Furthermore, some reimbursable costs are not taxable (subject to legal conditions), for example: recurring expatriation expenses, moving costs, housing set-up costs in Belgium, school tuition fees for the inpatriate’s children.
Current cumulative conditions (2022):
- No link with Belgium during the 60 months preceding the arrival (residence > 150 km from the Belgian border, no taxation in Belgium on professional income).
- Costs proper to the employer ≤ 30% of the annual gross remuneration.
- Overall cap on the tax-exempt reimbursements ≤ €90,000/year.
- Belgian gross taxable remuneration > €75,000/year.
- Duration: up to 5 years, extendable by 3 years if the conditions remain fulfilled.
What is changing?
|
Parameter |
Current rule |
2025 draft |
| Employer costs (percentage) |
30% |
35% |
| Overall annual cap |
€90,000 |
Removed |
| Gross remuneration threshold |
€75,000 |
€70,000 |
| Timing |
— |
Retroactive at the earliest from 01/01/2025 |
Key transitional measure:
Inpatriates who started their employment between 01/01/2025 and the 10th day following publication in the Belgian Official Gazette, who did not exceed €75,000 but reach €70,000, have 3 months (starting from that 10th day) to submit the application.
Question to consider: Do you have employees who started in 2025 just below €75,000… but above €70,000? They may now qualify for the special tax regime.
What about impatriate researchers?
With regard to the special tax regime applicable to inpatriate researchers, there is no minimum gross remuneration requirement. Consequently, the new €70,000 threshold does not apply to researchers. However, the other changes introduced by the reform also apply to them.
What measures can you anticipate as an employer?
1. Map your 2025 inpatriates
a. Which employees started their position ≥ 01/01/2025 and met the conditions other than the remuneration threshold?
b. Is their gross remuneration between €70,000 and €75,000 per year?
2. Recalibrate remuneration packages
a. Adjust the remuneration structure to optimize a portion of 35% as costs proper to the employer.
b. The benefit must be implemented in the inpatriate’s payroll.
3. Update HR documentation & contracts
a. Contracts/addenda: integrate the new parameters of the regime.
Although the law still needs to be formally adopted, it is already advisable for employers and the concerned taxpayers to prepare the necessary adjustments in order to ensure a smooth and compliant implementation once the new regime officially enters into force.
Our team remains at your disposal should you have any questions on this topic.
