Belgium Introduces New Government Plans Impacting Global Mobility

Since the end of January, Belgium has a new government and signed a coalition agreement outlining its strategic plans. Several proposed measures are expected to impact the global mobility landscape. Below is an overview of the key changes.

Wage costs and employer competitiveness

• Employer social security contributions will be capped for gross annual salaries exceeding EUR 250,000.
• Adjustments to the ‘Plus Plan’ include an ongoing reduction of EUR 2,000 per quarter for the first employee, with an additional reduction of EUR 1,000 per quarter for the first three years for the 2nd to 5th employee.
• The expat tax regime is set to become more attractive, increasing tax-exempt expenses from 30% to 35% and lowering the minimum gross salary threshold from EUR 75,000 to EUR 70,000.

Employment law reforms

• A reintroduction of the trial period by 31 December 2025, allowing either party to terminate an employment contract within the first six months with one week’s notice.
• Severance pay will be capped at 52 weeks of salary.
• The ban on night work will be lifted.
• Voluntary overtime limits will increase to 360 hours across all sectors (450 hours for hospitality), with 240 of these hours exempt from overtime pay, social security and tax obligations.
• The current 180 tax-friendly overtime hours and standard procedures for involuntary overtime will remain in place.

Increased audits and compliance focus

Authorities plan to increase audits on:

• application of the 183-day rule under double tax treaties
• identification of false self-employment
• potential misuse of secondments
• malicious subcontracting practices
• undeclared work
• activities on digital platforms and in the sharing economy
• single permits compliance.

New solidarity contribution – capital gains tax on financial assets

A new 10% solidarity tax will be introduced on future capital gains from financial assets, including cryptocurrency, with key exemptions:

• gains accrued before the tax introduction (planned for 2026) will be exempt
• sales of substantial shareholdings (at least 20%) will have a tiered tax structure:

1. EUR 1 million exempt
2. EUR 1 million – EUR 2.5 million: 1.25% tax
3. EUR 2.5 million – EUR 5 million: 5% tax
4. EUR 5 million – EUR 10 million: 5% tax
5. Above EUR 10 million: 10% tax

• a general exemption of EUR 10,000 will apply to small investors
• capital losses will be deductible within the same category and year.

Next steps

These proposed changes could have significant implications for businesses and individuals operating in Belgium. As further details emerge, companies should assess potential impacts on employment costs, compliance requirements and global mobility strategies.