Circular letter on the tax changes to the special tax regime for inbound taxpayers and inbound researchers
As already mentioned in our previous newsletter, at the end of 2025 certain changes were implemented in respect of the special tax regime for inbound taxpayers and inbound researchers retroactively - effective 1 January 2025 -, i.e. the annual salary threshold was lowered from EUR 75,000 to EUR 70,000, the tax exempt allowance (the so-called ‘costs proper to the employer’) increased from 30% to 35% maximum and the annual allowance cap of EUR 90.000 was abolished.
On 1 April 2026, the Belgian tax authorities have issued a Circular letter commenting on the tax implications of the retroactively implemented changes and clarified the following:
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Inbound taxpayers and inbound researchers who already benefitted from the special tax regime prior to the implementation of the above changes
The employer and inbound taxpayer/researcher are free to update the employment contract with retroactive effect to reflect the positive impact of the increased allowance, i.e. by lowering the gross salary and by increasing the percentage of the tax free allowance.It is, however, imperative that such a retroactive change to the employment contract is agreed upon by 1 July 2026 at the latest and that the relevant payroll documents (fiscal voucher 281.10 and wage tax withholding returns) covering income year 2025 are corrected.Any update beyond this date will not be accepted.
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Inbound taxpayers whose employment relationship started between 1 January 2025 and 9 January 2026 and who were initially not eligible to benefit from the special tax regime (annual salary threshold not met) but who have become eligible now as a result of the recent legal changes
A special application deadline applies for this particular category (ending on 9 April 2026) and, provided that this is met, their employment contract can also be updated similarly to what is outlined under point 1 above.
For the sake of completeness, as already outlined in our separate newsletter, the above changes only apply at a tax level, not at a social security level (as reiterated by the Belgian social security administration in the administrative instructions covering Q1 2026).
! It's time to act!
E-mail tax@propay.be if:
- You would like more information about the special tax regime;
- You would like assistance with the preparation and submission of the (special) application for special tax regime;
- You would like assistance in relation to re-evaluating existing compensation packages and/or updating employment contracts.
