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.
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).