Belgian impatriate regime in 2026: can salary fund the tax-free allowance?
Can salary fund Belgium’s impatriate allowance? A contract change may help, but the annual salary threshold and arrival-year checks remain decisive in 2026.
A salary restructuring may allow an employer to fund an impatriate allowance, but simply relabelling existing gross pay is insufficient. The contractual arrangement, qualifying remuneration and annual threshold must all comply with the regime, and the outcome depends on individual circumstances.
This article concerns income year 2026 (assessment year 2027). Figures below are illustrative; future-year projections require a fresh check of the applicable rules.
What changed under the impatriate regime?
The special tax regime for impatriate taxpayers, known as the RSII, allows qualifying recurring expenses to be reimbursed in addition to remuneration. For remuneration paid or attributed from 1 January 2025, the reform increased the ceiling to 35%, removed the former €90,000 annual cap and reduced the qualifying remuneration threshold to more than €70,000.
The allowance is excluded from the remuneration used to satisfy that threshold. A €70,000 salary plus an allowance therefore does not meet the full-year requirement: the salary must exceed the threshold.
The 35% figure is a maximum, not a mandatory payment or an automatic entitlement.
Who needs to check eligibility?
A typical case involves an employee recruited abroad to work in Belgium whose employer has a fixed remuneration budget.
Eligibility requires more than a qualifying salary. The recruitment or assignment must fall within the regime. During the relevant 60-month look-back period, the employee must meet the conditions concerning Belgian tax residence, residence within 150 kilometres of the Belgian border and Belgian non-resident taxation of professional income.
An employment contract alone does not establish that every condition is fulfilled. The employer must submit the application and supporting employee attestation, and the administration must approve the regime.
Can the employer reduce gross salary?
There is an important distinction between changing a payslip and changing the underlying agreement.
The allowance must be contractually agreed and paid on top of the agreed gross remuneration. An employer cannot simply treat a portion of an unchanged contractual salary as a non-taxable reimbursement.
The 2026 circular illustrates a contractual reduction in gross remuneration alongside an increased reimbursement. That example belongs to the reform's transitional arrangements; it should not be read as unrestricted permission to backdate any salary conversion.
For a prospective arrangement, employer and employee need a properly documented agreement that respects labour law, applicable minimum remuneration and the RSII conditions. The effective date and payroll treatment require review before implementation.
Why the threshold can prevent a conversion
Consider an illustrative employee with €74,000 of qualifying annual remuneration. Reducing that remuneration by €5,000 leaves €69,000, below the full-year threshold. Paying a separate allowance does not repair the shortfall.
A smaller reduction may be possible, but the calculation must include the effect on salary-linked payments. Reducing monthly gross pay can also reduce holiday pay and an end-of-year bonus.
Payroll should distinguish:
Qualifying remuneration before the change.
Qualifying remuneration after all related adjustments.
The separate recurring-expense reimbursement.
Employer contributions and the resulting total employment cost.
A nominal allowance and the amount of gross salary surrendered are not necessarily equal. Any employer contribution savings must be established in a payroll simulation.
Which payments count?
The analysis must separate taxable qualifying remuneration from exempt benefits.
Base salary, qualifying holiday pay, an unconditional end-of-year bonus and taxable benefits in kind can contribute to the threshold. The RSII allowance itself and remuneration exempt under Article 38 of the Income Tax Code do not.
At application stage, a performance bonus dependent on future results cannot be treated as guaranteed remuneration. The annual check must then consider qualifying remuneration actually received, including relevant bonuses actually paid.
A cafeteria plan also needs careful review. Converting a cash bonus into an exempt benefit can reduce the qualifying total. If a company car replaces cash remuneration, its taxable benefit in kind may be lower than the salary given up.
Why the arrival year needs a separate calculation
The remuneration threshold is prorated for the arrival year using the relevant days during which the employment relationship in Belgium and the statutory conditions are maintained.
The method is:
€70,000 × qualifying days ÷ days in the calendar year.
Qualifying remuneration must exceed the resulting amount. A full-year contractual package does not, by itself, prove that the employee passes the arrival-year test.
An employee starting during the year may receive only part of an end-of-year bonus. Entitlement depends on the contract and sector rules. Holiday-pay rights also require separate verification; projecting a full recurring annual package into the first two years can overstate the amounts actually paid.
This is why a salary conversion that appears feasible in a normal full year may be unsuitable immediately after arrival.
Deadline, annual checks and trade-offs
The ordinary application deadline is three months from entry into service in Belgium. Negotiating remuneration should not be allowed to consume that filing window.
A timely application does not override the remuneration test or guarantee continued eligibility. Falling below the required threshold can end the regime, so employers should monitor the actual annual total as well as the initial contractual package.
A reduction in gross salary may also affect holiday pay, bonus calculations and social protection. A higher immediate net payment should therefore be assessed alongside those consequences.
The social-security treatment must be checked separately against the applicable ONSS instructions. A tax adjustment for an earlier period should not automatically be assumed to produce the same contribution adjustment.
Frequently asked questions
Can exactly €70,000 of salary qualify?
For a full calendar year, the statutory test is more than €70,000. The separate RSII allowance does not count towards that amount.
Must the employer pay the full 35%?
No. The percentage is a ceiling; a smaller agreed reimbursement is possible if the other conditions are satisfied.
Can an expected bonus rescue the application?
A bonus conditional on future performance cannot be relied upon as certain remuneration at application stage. Relevant bonuses actually paid must be considered in the annual check.
Does a signed addendum guarantee a valid conversion?
No. It must also comply with labour law, the regime's conditions and payroll requirements, and leave sufficient qualifying remuneration.
Should the employee wait until the salary structure is settled before applying?
The employer must preserve the ordinary three-month filing deadline. The application and proposed remuneration arrangement should be coordinated without assuming approval or future compliance.
Sources
SPF Finances, Circular 2026/C/51 of 1 April 2026, reproduced by Forum for the Future.
SPF Finances, Circular 2022/C/47 of 6 May 2022, reproduced by Forum for the Future.
ONSS administrative instructions, reimbursement of expenses.
This article explains a general framework and is not personalised tax advice. Rules can change each year, and the treatment depends on the exact circumstances.
Need tax advice tailored to your situation?
Have a similar situation? BeFiscal has already handled files like this one. To get a written tax analysis tailored to your own figures and situation, click the ‘Ask your question’ chat button on the right of this page: our assistant takes over, gathers the information needed and guides you through to your personalised written analysis.