Belgium

New expat tax regime

A 'new' special tax regime has been introduced for qualifying expatriates arriving in Belgium as of 1 January 2022. This regime replaces the 'old' special tax regime in place since 1983. The 'old' special tax regime ended on 31 December 2023. Expatriates who benefited from the 'old' special tax regime have now transitioned from an expat status (non-resident for personal income tax purposes) to a resident status in Belgium unless the individual can demonstrate that his tax residency is located outside of Belgium. New expatriates arriving in Belgium as of 1 January 2022 can, however, apply for the 'new' regime, provided they meet the conditions. 

The essential characteristics of the 'new' expat regime can be summarised as follows:

• Separate, although in many regards identical, regime for executives and for qualifying researchers.
• Limitation in time to five years, with possible extension for another three years.
• Open to employees and company key individuals directly recruited abroad or seconded to Belgium within international groups of companies.
• Open to both foreign and Belgian citizens, whether employee or company key individuals (except for researchers what regards the latter).
• Required minimum gross annual taxable income of 75,000 euros (EUR) (not applicable to researchers).
• Precondition of lack of submission to Belgian income tax in the 60 months preceding the start of professional activities in Belgium (whether as resident or as non-resident).
• Precondition of previous place of residence more than 150 kilometres away from the Belgian border.
• 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.
• Possibility for the employer/company to reimburse on top of the lump sum 30% specific other expenses, such as moving expenses, installation costs (maximum of EUR 1,500), and school fees.
• New regime is individual centric, not company centric (i.e. it can be continued with another employer in Belgium, provided all conditions are still met).
• Formal request to be made by the employer/company and by the employee/company key individual within three months from the arrival in Belgium. 
• Entry into force: 1 January 2022.

Cayman tax

Since its introduction in 2015, the Cayman Tax has been strengthened several times and recently the program law of 22 December 2023. This law reformed the rules concerning the Cayman tax on a number of key points notably in terms of reporting.

In the past, it was sufficient to report the existence of the legal arrangements in the individuals' tax return. Now, as from the assessment year 2024, there is an obligation to attach a specific annex (known as the annex “276 CJC”) to the tax return. This new annex demands detailed information about the legal structures involved and the income distributed, including for example the identification data, the part of the assets contributed by the founder, and the estate of the legal arrangement.

Other measures

• Introduction of a mandatory reporting (as of 1 January 2019) and withholding (as of 1 March 2019) requirement in the hands of a Belgian entity in case affiliated foreign companies grant taxable benefits (in kind or in cash) to employees or directors working for the benefit of the Belgian entity. 
• Introduction of a new reporting obligation as of 1 January 2022 for companies to report the actual amount (real value) of cost proper to the employer that are reimbursed on the basis of supporting documents.
• According to the latest administrative instructions of the National Security Office (NSSO), social security contributions are due on all benefits related to the work performed by the employee in the framework of one's employment contract with the employer. This adjusted NSSO position applies a very broad, and possibly questionable, interpretation by stating that employees of a Belgian subsidiary only receive a benefit that is granted by a foreign parent company because of their employment with the Belgian subsidiary and that, consequently, such benefit should always be considered as salary subject to Belgian social security contributions, even when there is no intervention of the Belgian employer in the grant of the benefit and no recharge of the costs to the Belgian employer. 
• The tax on securities accounts that reach or exceed EUR 500,000 per account holder has been abolished with effect as of 1 October 2019 after a decision of the Belgian Constitutional Court and will be replaced by a solidarity tax of 0.15% on securities accounts that reach or exceed EUR 1 million (held by Belgian resident taxpayers in Belgium or abroad and by non-residents in Belgium).
• Resident taxpayers who own real estate abroad must report their foreign property in their Belgian tax return. Since 2021, they must submit a declaration to the Administration of Measurement and Valuations, which will determine the deemed rental value of the foreign real estate.