What is the 30% rule in Belgium?

Expats already living in Belgium may find that the outcome is a reduction in salary, given that the previously allowable write-offs have been replaced by a flat-rate 30% deduction at a maximum of €90,000 for work-related professional expenses. This means that 'in-kind' remuneration is now no longer tax-exempt.

What is the 30% tax rule in Belgium?

Possibility for the employer/company to pay up to a maximum 30% of gross annual taxable income as tax and social security free expense reimbursement (a payment that comes on top of the gross salary). Limitation of the 30% lump sum tax and social security free expense reimbursement to EUR 90,000 per annum.

What is the 75% rule in Belgium?

If your income is less than the personal tax allowance, you do not have to pay tax. If you are subject to non-resident income tax, you can only qualify for the full personal tax allowance if your professional income taxable in Belgium accounts for at least 75 % of your total professional income.

What is the 30% Ebitda rule in Belgium?

The EBITDA-based rule is in line with the EU Anti-Tax Avoidance Directive (ATAD) I requirements. Exceeding borrowing costs are only tax deductible up to the highest of (i) 30% of the taxpayer's fiscal EBITDA or (ii) EUR 3 million.

What is the expat regime in Belgium 2025?

Expats arriving in Belgium were required to have a gross annual salary exceeding EUR 75,000. However, with the introduction of this draft law, this salary condition will be reduced (retroactively effective from January 1, 2025) to EUR 70,000.

Dutch taxes explained: 30% ruling

What is the expat exemption for 2025?

2025 FEIE Limit

The maximum exclusion is $130,000 for tax year 2025 (filed in 2026), up from $126,500 for tax year 2024 (filed in 2025). For example, if you earn $150,000 in 2025 while living overseas and qualify for the FEIE, you'll only be taxed on $20,000.

What changes in Belgium on 1 January 2025?

The legal retirement age is increased from 65 years old to 66 years old as of 1 January 2025. In 2030 the retirement age will be further increased to 67 years old. Employers of flexi-job employees need to register the flexi-salary every time they calculate the remuneration (in principle once a month).

What is the 30% EBITDA rule?

The 30% EBITDA rule states that income/costs economically equivalent to interest need to be taken into account when computing the excess borrowing costs.

How to reduce income tax in Belgium?

How to calculate tax on rental income in Belgium?

Example: You rent out a property with a cadastral income of €900. The tax on this rental is calculated as follows (income year 2024): €900 x 2.1763 (2024 index) x 1.4 = €2,742.14. This amount is then added to any other income you have, and you're taxed according to Belgium's progressive tax brackets (25-50%).

Do foreigners pay tax in Belgium?

Both residents and non residents are required to pay personal income tax in Belgium . While non-residents are only taxed on their income earned in Belgium, residents are taxed on their worldwide income. Personal income tax in Belgium is progressive, with rates 25-50%, based on income brackets.

How long can a British citizen stay in Belgium?

You can travel without a visa to the Schengen area, which includes Belgium, for up to 90 days in any 180-day period. This applies if you travel: as a tourist. to visit family or friends.

What is salary split in Belgium?

The term salary-split refers to the practice of splitting taxes on foreign employment in two or more countries. You pay taxes locally on the portion of work that your employee carries out in that specific country. This is also known as the 'work-country principle'.

How to get tax-free in Belgium?

Why do I have to pay 30% tax?

30% tax deduction: If 30% of tax is being deducted from your pay, this means either you haven't given your employer a UTR or that HMRC couldn't find your UTR on its list of registered subcontractors. You should contact HMRC and make sure you are correctly registered as self-employed and as a CIS subcontractor.

Are salaries in Belgium low?

The average gross monthly salary is 4,076 euros

The median wage is lower than the average wage and was 3,728 euros gross per month. This means that 50% of employees earn less than 3,728 euros, while the other half has a higher salary.

What is the minimum pension in Belgium?

The minimum pension for full time employment and for a single person currently amounts to (2021) 15.911,02 EUR (gross amount) for a full career. If there are fewer than 45 years (with 52 working days, each of which is full-time) in your career, the minimum pension will be proportional to your career.

What will happen on 25 January 2025 and when?

The six planets will form an astronomical alignment known as the "planetary parade". Stargazers are in or a treat as six planets - Venus, Mars, Jupiter, Saturn, Neptune, and Uranus - are set to align in the night sky today, January 25, offering a spectacular view.

What is the salary indexation in Belgium 2025?

Wage indexation 2025 means that, effective from January 1, 2025, the gross salaries of employees under JIC 200 will be increased by 3,58%. This increase is implemented to ensure that employees maintain their purchasing power despite inflation.

What is the 5 year expat rule?

An individual needs to be non-resident for more than five years to escape UK CGT on assets owned at the time of departure (other than UK land and property) of which he or she disposes after leaving the UK.

How long do you have to live abroad to be considered an expat?

Typically, an expat is someone who intends to live overseas for a long time – anywhere from a few months to several years. They will often stay for a period longer than that permitted by a normal tourist visa.

What is the 4 year exemption rule?

Summary of changes for individuals

Any individual can access the 4-year FIG regime as long as they have been non-UK tax resident for at least 10 consecutive tax years before the first of the four years (UK tax years run from 6 April one year to 5 April the next).

How much is a good salary in Belgium?

The salary range spans from the lowest to the highest in the country. In Belgium, low earners make about €2407 monthly, about $3245, while high earners make closer to €7011, about $9452.

What is double holiday pay in Belgium?

Double holiday pay is calculated in proportion to the accrued right, up to a maximum of four weeks. The calculation is based on the gross monthly salary at the time of calculation and amounts to 92% of that salary. The gross salary includes any fixed bonuses for work performed and fixed amounts for benefits in kind.

Can you be a tax resident in two countries?

It is possible to be resident for tax purposes in more than one country at the same time. This is known as dual residence.