CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Sommer / Summer 2025Having a permanent establishment in Belgium determines not only whether acompany is subject to Belgian corporate tax, but also affects the tax obligations ofthe posted employees. Generally, employees pay taxes in the country in which theyare considered permanent residents. However, if the employer has a permanentestablishment in Belgium, the employee also becomes taxable there. In most cases,this is considered more inconvenient than the company being subject to Belgiancorporate tax.III. Expat statusEmployment in Belgium is not all bad news. Belgium also offers a favourable taxregime for foreign executives and researchers who are working in Belgiumtemporarily. This is commonly referred to as the 'expat status'. This special taxstatus applies to employees and company directors, as well as researchersemployed by a Belgian company or the Belgian branch of a foreign company.Designed to attract international talent, the regime provides tax advantages forboth employees and employers.Certain conditions must be met to qualify for the expat status. The employee maynot have been a Belgian tax resident in the 60 months preceding their employmentin Belgium, nor have lived within 150 kilometres of the Belgian border during thatperiod. They must also not have been subject to Belgian non-resident income taxon professional earnings. Additionally, they must earn a minimum gross annualsalary of 75,000 EUR for work performed in Belgium. This income threshold doesnot apply to researchers, who must either hold a relevant master's degree ordemonstrate at least 10 years of relevant professional experience. Furthermore,researchers must dedicate at least 80% of their working time to research-relatedactivities.Applications for the expat status must be submitted electronically by the employerto the Belgian tax authorities within three months of the employee starting theirassignment in Belgium. If approved, the expat status is granted for a maximum offive years, with the possibility of a one-time extension of up to three years.The expat status provides several important benefits. Qualifying employees andresearchers may receive up to 30% of their annual gross salary as a tax-free30
CONVINUS Global Mobility Insights - Sommer / Summer 2025allowance for “employer-specific costs”, up to a maximum of 90,000 EUR per year.In addition, employers can reimburse certain substantiated expenses incurred bythe employee, such as relocation costs to Belgium, furnishing a residence inBelgium and school fees for children attending school in Belgium. The Belgiansocial security authorities follow the approach of the tax administration, meaningthat the aforementioned reimbursements and allowances are also exempt fromsocial security contributions. This is also advantageous for the employer.In practice, the expat status is thus an attractive option for companies seeking torecruit or retain foreign talent while optimising overall employment costs.Contact:Euregio Law & TaxGenkersteenweg 429+32 (0) 11 29 47 013500 Hasseltinfo@euregio.lawBelgiumeuregio.law31
Expat policy 
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