Belgium Expat Tax Regime Guide

New Regime (Post-2022) — 85% Foreign-Source Exclusion

• The 85% exclusion: Under the new regime (applicable from 1 January 2022), qualifying expatriates can exclude 85% of their foreign-source employment income from Belgian personal income tax. The foreign-source portion is determined by the number of days the expat works outside Belgium in a calendar year — each remote working day from abroad counts as foreign-source. The formula: (days worked abroad ÷ total working days) × total gross salary = foreign-source income. The excluded portion is capped at €1,000 per day of the "expat advantage" (the salary component that relates to the international assignment — typically the base salary differential).
• Eligibility criteria: To qualify, the expat must: (a) have been recruited abroad (the expat must have lived outside Belgium for at least 3 years before the start of the assignment — the "foreign recruitment test"), (b) hold a position requiring specialised expertise or a managerial role (the "specialised knowledge" test — the employer must justify that the role cannot be filled locally), (c) be transferred to a Belgian company (the "group of companies" rule — the expat must be hired by a Belgian entity within the same multinational group), and (d) work in Belgium for at least 60 days per calendar year (the minimum presence test).
• 5-year limit: The regime is capped at 5 consecutive years, starting from the date the expat is first included on a Belgian payroll. The 5-year period does not reset if the expat changes employer within Belgium (it is a personal regime, not employer-specific). If the expat leaves Belgium and returns later, the period continues from where it left off if the break is fewer than 3 years. If the break exceeds 3 years, the 5-year period restarts from zero.
• Tax treatment of the excluded portion: The excluded 85% is not subject to Belgian personal income tax but remains subject to social security (RSZ/ONSS). The employer must still report the full salary (including the excluded portion) on the payroll — but marks the excluded portion as "belastingvrij" / "exonéré" in the payroll declaration. The employee's taxable basis for personal income tax is 100% of salary minus 85% of the foreign-source portion = 15% of foreign-source income + 100% of Belgian-source income.

Old Regime (Pre-2022) — Transitional Rules

• Old regime — the 50% professional expense allowance: Under the old regime (applicable until 31 December 2021), qualifying expatriates could claim a 50% fixed professional expense deduction on their total Belgian employment income (the "forfaitaire beroepskosten" / "frais forfaitaires professionnels" at 50% of salary, capped at €59,380 in practice). This effectively reduced the tax burden by allowing half the salary to be treated as tax-exempt professional expenses. The old regime also allowed: (a) the exclusion of the "expat advantage" (the additional compensation for the international relocation) — typically 20–40% of base salary taxed at source at a reduced rate, and (b) the reimbursement of actual relocation costs (temporary accommodation, school fees, shipping) tax-free.
• Transition for expats in the old regime: Expatriates who were already in the regime before 1 January 2022 can remain under the old rules until the earlier of: (a) the end of their 5-year period (calculated from their original start date), or (b) 31 December 2023 (the sunset date for the old regime). From 1 January 2024, all expats must transition to the new regime. The transition is relatively smooth — the new regime's 85% exclusion typically provides a similar or better outcome for most expats. However, expats who had a very high "expat advantage" (above €1,000/day) may find the new cap more restrictive.

Application Process

• Employer application: The employer must apply for the expat regime on behalf of the employee. The application is filed with the FOD Financiën — Expatriates Service (SPF Finances — Service Expatriés). The application must include: (a) a detailed job description justifying the specialised expertise/managerial role, (b) proof of foreign recruitment (the CV, the recruitment letter, proof of residence abroad for 3+ years), (c) the employment contract showing the salary breakdown into Belgian-source and foreign-source portions, (d) the commitment to spend 60+ days per year in Belgium. The application is typically processed within 2–3 months.
• Approval and renewal: The regime is approved for an initial period (typically 3 years) and can be renewed for a further 2 years (to reach the full 5-year maximum). The renewal application must be filed before the initial period expires. The employer must demonstrate that the expat continues to meet the eligibility criteria. There is no renewal beyond 5 years — the regime is a one-time 5-year benefit.
• Payroll implementation: Once approved, the employer adjusts the payroll to reflect the exclusion. The employer withholds wage tax (bedrijfsvoorheffing) only on the taxable portion of salary. The employer files the quarterly payroll declaration (DMFA/DIMONA) showing the full salary and the excluded portion. The employee does not need to file a separate tax return for the excluded income — it is pre-filled in the annual tax return (the "aanslagbiljet" / "avertissement-extrait de rôle" will show the excluded amount.

For the full details on Belgian income tax for expats and residents, see our Personal Tax Guide →. For the cross-border employment and social security implications, see our Cross-Border Tax Guide →. For the post-assignment exit rules, see our Leaving Belgium Guide →. For the official rules, see the FOD Financiën expat circular.