Special tax regime for inpatriate executives and researchers in Flanders
Does your company employ foreign executives and/or researchers temporarily assigned to Belgium and Flanders as a region? Great news: they can benefit from a special expat tax status, including tax-free expat allowances tax-free reimbursement of specific costs and more.
Significant reductions in employment costs
Overall, the special tax regime for inpatriate researchers and executives offers the benefit that certain “costs proper to the employer” can be reimbursed free of tax and social security contributions for a period of 5 years. This tax-free reimbursement may amount to up to 30% of the gross annual salary but is capped at EUR 90,000 per year.
In addition to the 30% tax-free reimbursement, school fees as well as relocation and installation expenses may also be repaid as employer-specific costs.
What are the main conditions?
The inpatriate employee must be:
- either hired directly from abroad by a Belgian company, a Belgian establishment of a foreign company or a non-profit organization;
- or assigned by a foreign company (that’s part of a multinational group) to one or more Belgian companies, one or more Belgian establishments of a foreign company that belong to the same group, or a non-profit organization.
In addition, the employee must:
- have been living more than 150 km away from the Belgian border;
- earn at least EUR 75,000 per year (except for researchers).
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