Expatriate Status: Recent Amendments and Clarifications under Circular No. 2026/C/51 of 1 April 2026

A. Former and New Expatriate Regimes

The former expatriate regime was based exclusively on the Circular of 8 August 1983.

By virtue of the Programme Law of 27 December 2021, the former “administrative” regime has been replaced by a new “statutory” regime (please refer to this article for more information).

Pursuant to a transitional provision, both regimes could coexist until 31 December 2023 inclusive. Since 1 January 2024, only the new expatriate regime is applicable.

The current legislation now distinguishes between the Special Tax Regime for Inbound Taxpayers (RSII) and the Special Tax Regime for Inbound Researchers (RSICI). These provisions apply to eligible inbound taxpayers and inbound researchers who start employment in Belgium as from 1 January 2022.

While the new expatriate regime provides greater legal certainty, it is less advantageous than the former regime in several respects, notably due to:

1. the introduction of a minimum remuneration requirement (applicable only to the RSII), and
2. the nominal limitation on employer-specific expenses that may be borne by the employer in addition to the expatriate’s remuneration (rendering the regime less attractive for high-income expatriates).

B. The Law of 18 December 2025 containing various provisions

As announced in the Easter Agreement and now formally confirmed by the Law of 18 December 2025, the special tax regime for inbound taxpayers (RSII) and inbound researchers (RSICI) has been amended. Entering into force on 1 January 2022 to replace the former special tax regime for foreign executives dating from 1983, this regime aimed to strengthen Belgium’s attractiveness for international companies.

a. Change to the RSII: Reduction of the Minimum Gross Salary from EUR 75,000 to EUR 70,000

In order to qualify for the RSII, the employee or company director concerned must receive in Belgium a gross taxable remuneration exceeding EUR 75,000 per calendar year for services rendered in Belgium.

The Law of 18 December 2025 lowers this minimum threshold to EUR 70,000. This amount may be adjusted every three years in line with the evolution of the smoothed health index.

Remuneration includes the annual gross remuneration for services performed in Belgium, prior to the deduction of social security contributions, but excludes severance payments, compensation for temporary loss of remuneration, and remuneration exempt pursuant to Article 38 of the Income Tax Code 1992. Bonuses and benefits whose allocation is uncertain at the time of the RSII application cannot be taken into account.

The minimum remuneration threshold applies solely to services performed in Belgium.

For inbound taxpayers benefiting from a split salary arrangement, the threshold condition must be assessed by taking into account only the remuneration relating to services rendered in Belgium.

No minimum gross salary requirement applies under the RSICI; only a diploma requirement must be met. Furthermore, the RSICI applies exclusively to employees and not to company directors.

b. Relevant Changes for RSII and RSICI: Increase of the Tax Allowance from 30% to 35% and Removal of the EUR 90,000 Cap

Under both the RSII and RSICI, employers may grant a lump-sum expense allowance, exempt from income tax and social security contributions, in addition to salary, up to a maximum of 30% of the gross remuneration, capped at EUR 90,000 per year.

This allowance is deemed to constitute reimbursement of employer-specific expenses, which may include

1. one-off relocation expenses,
2. costs related to furnishing a residence in Belgium,
3. school fees in Belgium for the taxpayer’s or their partner’s resident children, and
4. all other recurring expenses directly resulting from employment in Belgium.

The Law of 18 December 2025 increases this tax-free allowance from 30% to 35% and—more importantly – abolishes the annual cap of EUR 90,000.

From a social security perspective, the National Social Security Office (ONSS) continues to treat such allowances under the RSII/RSICI as exempt from social security contributions, notwithstanding the increase in the percentage and the removal of the cap.

In practical terms, certain high-income inbound taxpayers, for example a senior expert earning EUR 500,000, may now benefit from a tax exemption on up to EUR 175,000 of expenses. Similarly, employees earning approximately EUR 71,000, who were previously ineligible, may now fully benefit from the special tax regime.

C. Focus on the New Administrative Clarifications Set Out in Circular 2026/C/51 of 1 April 2026

Two clarifications are notably provided regarding the RSII remuneration threshold and recurring employer-specific expenses:

• As from 1 January 2025, for the year of arrival in Belgium, the year of departure, or the year in which the regime expires, the minimum gross salary is prorated on the basis of EUR 70,000 (instead of EUR 75,000), depending on the number of days during which the employment relationship and the regime conditions have been fulfilled.
• Furthermore, the abolition of the EUR 90,000 cap entails the disappearance of its prorating: this is no longer applicable to recurring employer-specific expenses under either the RSII or the RSICI.

With regard to the entry into force, the Circular confirms that the amendments have retroactive effect and apply to remuneration paid or granted as from 1 January 2025.

The Circular distinguishes between two situations following the amendments to the RSII and RSICI regimes, which apply retroactively to remuneration as from 1 January 2025:

• On the one hand, for inbound taxpayers and inbound researchers already eligible prior to the publication of the Law of 18 December 2025, the new tax limits may be applied as from 1 January 2025.

Existing employment contracts may, without constituting any legal obligation, be retroactively amended no later than 30 June 2026 to incorporate the new tax rules:

– RSII: remuneration threshold reduced to > EUR 70,000

– RSII & RSICI: employer expenses increased to 35%, without a EUR 90,000 cap

• On the other hand, for new entrants, the Law of 18 December 2025 allows for a retroactive application for RSII status, provided that the relaxed conditions are met.

Due to this retroactivity, an exception is provided for inbound taxpayers who commenced employment in Belgium between 1 January 2025 and 9 January 2026 and who initially did not meet the EUR 75,000 remuneration threshold, but who satisfied all other applicable conditions as well as the new minimum threshold of EUR 70,000.

These individuals were nevertheless entitled to submit an application to be subject to the inbound taxpayer regime by no later than 9 April 2026, constituting a derogation from the standard three-month period following commencement of employment.

Finally, the Circular does not clarify the position of the ONSS regarding these changes, which may give rise to a degree of legal uncertainty.

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These developments undoubtedly offer optimisation opportunities for both companies and the individuals concerned. However, they require a case-by-case assessment.

At Andersen in Belgium, our Global Mobility team provides appropriate legal support to identify the relevant adjustments and ensure their implementation. This assistance covers both tax law and social law (employment law and social security law).