Belgium Tax Incentives: A Complete Guide for Businesses and Individuals

By Rajan Rauniyar

|

Updated on: Aug 8th, 2025

|

64 min read

social iconssocial iconssocial iconssocial icons

Belgium’s tax system offers a lot of incentives for both businesses and individuals, allowing taxpayers to legitimately minimize their liabilities while encouraging economic growth, innovation, and social welfare. From business schemes like the Innovation Income Deduction and R&D tax credits to personal benefits such as pension savings deductions and childcare tax relief, these incentives are tailored to support investment, job creation, family needs, and sustainable development.  Both federal and regional incentives exist, each with their own application processes and conditions.

What Are Belgian Tax Incentives?

Tax incentives in Belgium are government-backed provisions-such as deductions, credits, exemptions, and reduced rates-that aim to spur specific economic activities, innovation, social policy outcomes, and investment by lowering tax liabilities for eligible taxpayers. These incentives exist at both the federal and regional levels, each with its own rules and application methods.

Business Tax Incentives

Belgian businesses benefit from a series of robust incentive schemes that reduce their effective tax burden on innovation, investment, and employment. Below, we break down each major incentive

Innovation & R&D Incentives

These incentives reward companies that invest in research, innovation, and intellectual property development. Businesses benefit through substantial tax deductions on income from patents or R&D generated software, extra tax credits or accelerated deductions for R&D investments, and significant payroll tax savings for hiring qualified researchers.

Innovation Income Deduction (IID)

The Innovation Income Deduction is a key Belgian tax incentive for companies that own intellectual property (such as patents, copyrighted software, or certain exclusive rights developed through R&D). It allows businesses to significantly reduce the taxable proportion of income earned from this IP. The purpose is to encourage companies to innovate, develop, and commercialize intellectual property in Belgium, enhancing the country’s international competitiveness and supporting the development of knowledge-based industries.

Limit and Commercials

  • Deduction: 85% of net eligible innovation income is deducted from the taxable base.
  • Effective tax rate: As low as 3.75% (with Belgium’s 25% corporate tax rate).

Eligibility

  • Belgian companies and branches owning eligible IP: patents, copyrighted software from R&D, plant breeder’s rights, orphan drug exclusivity, and certain market/data exclusivities.
  • Nexus ratio: The proportion of R&D performed by the company on the IP vs. acquired R&D or outsourcing affects the deduction.
  • Income must be net of all related R&D costs.

How to Claim

  • Include the claim in the annual corporate tax return (Biztax) and complete the relevant section for the IID.
  • Maintain robust documentation: revenue streams from each IP, R&D expenditure, and the nexus calculation.
  • Advance ruling  is recommended for complex IP cases to secure the regime.

Other Details: The benefit is subject to frequent tax audits prepare documentation thoroughly.

R&D Investment Deduction and Tax Credit

This incentive allows Belgian businesses to deduct an extra percentage of investments made in research and development-related fixed assets, such as laboratory equipment or facilities. Alternatively, companies can opt for a refundable tax credit. The aim is to spur private investment in scientific and technological advancement by making it more financially attractive for companies to modernize and expand their R&D activities. 

Limit and Commercials

  • One-off deduction: Traditionally 13.5%; up to 40% for SMEs/thematic assets (rates vary annually).
  • Tax credit: Equivalent % of investment, refundable if unused.

Eligibility

  • Companies investing in qualifying new R&D equipment, laboratories, or related capital assets.
  • Must be depreciable fixed assets linked to R&D activities.
  • In some cases, notification to regional authorities may be necessary.

How to Claim

  • File form 275U with the corporate income tax return detailing assets and calculations.
  • Choose between deduction or credit (mutually exclusive).
  • For regional R&D subsidies: refer to respective regional portals (VLAIO for Flanders: https://www.vlaio.be)

Other Details: Refundable tax credits improve cash flow, especially for innovative start-ups and SMEs.

Payroll Withholding Tax Exemption for Researchers

Companies, universities, and qualifying research institutions in Belgium benefit from an exemption allowing them to keep 80% of the payroll withholding tax for eligible R&D personnel. This incentive directly reduces the cost of employing scientists and engineers, attracting highly skilled talent and supporting the growth of innovation-driven businesses.

Limit and Commercials

  • 80% exemption on payroll withholding tax for salaries of eligible researchers.
  • The exemption is substantial and can be claimed monthly.

Eligibility

  • Employers (businesses, universities, certain research institutions) with eligible R&D staff.
  • Staff typically need a STEM degree or technical/scientific background.
  • R&D project or activity must be notified to BELSPO (recommended, not mandatory). 

How to Claim

  • Claim via regular payroll filings by reducing the withholding remitted (no special form, but keep detailed staffing and degree records).
  • Maintain project documentation and, where possible, evidence of project approval by BELSPO.

Other Details

  • Subject to audit-retain evidence.
  • Applies only to “net new” research jobs, not replacement of non-eligible staff.

Capital Investment & SME Incentives

Belgium encourages business growth and modernization with incentives for capital investment. SMEs benefit from reduced corporate tax rates and additional deductions on qualifying asset purchases such as machinery, energy-saving equipment, or digital tools. There are also targeted regimes for increased equity financing, ensuring that growing or modernizing companies maintain a favorable post-tax position, especially when investing in priority sectors.

SME Reduced Corporate Tax Rate

Belgian small and medium-sized enterprises (SMEs) enjoy a lower corporate income tax rate on the first segment of annual profits. This incentive is designed to support the growth, financial resilience, and reinvestment capacity of smaller businesses by allowing them to retain more post-tax earnings, fostering entrepreneurship and employment.

Limit and Commercials

  • Reduced tax rate: 20% on the first €100,000 of taxable profit (normal rate 25% above that).
  • Applies annually.

Eligibility

  • SME as per Belgian criteria: not part of a group owning/controling >50% subsidiaries; meets strict balance sheet and headcount tests.
  • Minimum director’s salary to Belgian resident manager(s): at least €45,000 or full profit if lower.

How to Claim

  • Rate applied automatically when filing the corporate income tax return-ensure SME status and director salary conditions are met.
  • Complete the qualifying sections and attach supporting admin.

Other Details

  • Above €100,000 profit, the normal 25% rate applies for excess.

Investment Deduction (General, Enhanced, Digital, Thematic)

Businesses and self-employed individuals in Belgium can claim an additional deduction for investing in qualifying fixed assets, such as machinery, technology, or green infrastructure. The incentive is structured to support investment in modernization, digital transformation, and sustainability, with enhanced deductions for certain strategic priorities like digital assets and environmentally friendly equipment.

Limit and Commercials

  • Standard (general) rate: ~8% for SMEs; varies for larger companies.
  • Enhanced rates: 20.5% (digitalization, energy-saving equipment), up to 40% for “thematic” investments by SMEs; 30% for others.
  • Special: Security equipment up to 27.5%, emission-free vehicles up to 42%.
  • Some rates are temporary, consult annual tables.

Eligibility

  • Businesses and self-employed investing in eligible new fixed assets (machinery, digital systems, green equipment).
  • SMEs may access higher rates; some assets (cars, property, leased assets) excluded.

How to Claim

  • Claim on form 275U submitted with the corporate or personal income tax return.
  • Maintain invoices, contracts, and calculation summaries for audit.
  • For digitalization: permanent 20% deduction on digital assets from 2025.

Other Details: Unused deduction: often carried forward, but some enhanced/temporary deductions may have limited carryover.

Deduction for Risk Capital (Incremental Notional Interest Deduction)

The incremental Notional Interest Deduction (NID) is a tax incentive for Belgian companies, offering a deduction based on increases in equity capital over recent years. Its purpose is to encourage equity financing over debt, reducing financial risk for companies, and making the Belgian corporate environment more attractive for robust capital formation.

Limit and Commercials

  • Deduction is calculated as a % (linked to 10-year government bond rate) of incremental equity over a 5-year average.
  • Rates for 2024: 0.943% for general, 1.443% for SMEs.

Eligibility

  • Belgian companies increasing their equity base over the moving average period.
  • Applies to all sectors; limited to net increments.

How to Claim

  • Enter the calculation in the tax return using the updated guidelines.
  • Keep thorough equity records.

Other Details

  • The broad NID was repealed for tax periods after 31 December 2023, but historical carry-forward may still be claimed.

Digitalization and E-Invoicing Incentives

To promote digital transformation, Belgium offers super deductions and elevated investment deductions for companies adopting digital systems and e-invoicing solutions. They help businesses offset the upfront costs of compliance and technology upgrades critical for future competitiveness.

120% Cost Deduction for E-Invoicing Expenses (2024–2027)

SMEs and self-employed persons can deduct 120% of certain e-invoicing implementation costs. This temporary incentive supports businesses in transitioning to electronic invoicing systems, making compliance with digital requirements more financially sustainable and encouraging modernization.

Limit and Commercials

  • 120% super deduction: For every €100 spent on eligible e-invoicing expenses, €120 is deductible.
  • Applies to non-capitalized/software/subscription/implementation costs.

Eligibility

  • SMEs and self-employed incurring eligible e-invoicing costs (software subscriptions, Peppol access, implementation consultancy).
  • The cost must be directly expensed; capitalized costs use investment deduction.

How to Claim

  • Claimed on the tax/corporate income tax return, with new codes specifically for the 120% deduction.
  • Retain all invoices, contracts, and payment proofs for audit.

Other Details

  • Temporary: Applies for 2024–2027 income years (assessment years 2025–2028).
  • Not available for capitalized digital assets.

20% Digital Investment Deduction (From 2025)

Effective from 2025, this permanent incentive lets businesses deduct 20% of the value of capitalized digital assets, such as software or digital infrastructure. Its purpose is to foster investment in digital transformation, boosting economic productivity and cyber resilience.

Limit and Commercials

  • 20% deduction: One-off deduction on capitalized digital asset value, in addition to regular depreciation.
  • Permanent regime, starting 2025.

Eligibility

  • Companies, SMEs, and self-employed investing in capitalized digital systems: e-invoicing platforms, CRM, cybersecurity tools, etc.

How to Claim

  • Via investment deduction section of the tax return, using form 275U.
  • Documentation: asset purchase/implementation contracts and capitalized asset register.

Other Details

  • Designed to avoid tax disadvantage between those expensing vs capitalizing digital investments.

Other Notable Business Incentives

Further incentives support specific goals: the 100% capital gains exemption for share sales rewards holding activities; sectoral tax shelters channel private investment into Belgian film and TV production; expatriate regimes reduce costs for foreign talent; and binding tax rulings provide legal tax certainty.

100% Deduction of Capital Gains on Shares (Dividends Received Deduction Regime)

Under certain conditions, Belgian companies can claim a full exemption for capital gains realized on qualifying shareholdings in subsidiaries, as well as dividends received. This provision assists in creating attractive structures for holding and managing corporate investments, especially for multinational groups.

Limit and Commercials

  • 100% exemption: On capital gains from qualifying shareholdings (if conditions met: >1 year holding, >10% or €2.5M participation, etc.).

Eligibility

  • Belgian companies holding significant investments in subsidiaries; requires uninterrupted minimum holding period (usually one year).
  • Excludes abnormal or disallowed payments.

How to Claim

  • Report in corporate tax return; ensure substantiation of participation test and minimum holding period.

Other Details

  • Also applies to dividends received under matching conditions.

Tax Shelter Programs (Film, Audiovisual, Start-Ups)

Belgium provides tax shelters for companies investing in the film and audiovisual sector and for individuals investing in start-ups and SMEs. These programs channel private capital into priority sectors, incentivize local production, and promote entrepreneurship by reducing the investor’s overall tax burden.

Limit and Commercials

  • Film/Audiovisual: Invest in certified productions, and deduct up to a set % of profits (varies by program and year).
  • Start-Up Equity: See individual section

Eligibility

  • For film: Companies subject to Belgian CIT; investment in approved productions via intermediary structures.

How to Claim

  • Enter deduction/credit in corporate tax return; documentation from approved intermediaries.

Other Details

  • Schemes have compliance requirements and may shift annually; confirm with tax advisor or intermediaries.

Expatriate Tax Regime (Since 2022)

To attract international talent, Belgium operates a specific tax regime for qualifying foreign executives, researchers, and specialists. It allows a portion of their salary to be tax-exempt, supporting Belgian companies in recruiting skilled workers from the global labor market.

Limit and Commercials

  • Up to 30% of gross salary tax-free as expatriation allowance (max €90,000/year).
  • Tax-free reimbursement of certain one-off expenses (moving, school fees).

Eligibility

  • Direct hires or intra-group transfers with key skills, recruited from abroad.
  • Must apply within 3 months of taking up Belgian post; valid for 5 years (extendable to 8).
  • Residence and salary minimums apply.

How to Claim

  • Employer applies via FPS Finance’s online portal.
  • Provide contract, proof of recruitment/assignment, and eligibility documents.

Other Details

  • The regime is separate from social security; no social contributions on allowance.
  • Amounts are deductible for employer.

Individual Tax Incentives

Alongside business provisions, Belgium’s tax system features a host of incentives rewarding socially valued behavior, supporting savings, and alleviating family burdens.

Personal Savings & Insurance Incentives

Individuals enjoy tax reliefs for contributing to retirement savings and life insurance products. There are generous deductions for pension contributions, long-term savings, and certain regulated savings account interests. Tailored products exist for the self-employed, aiming to strengthen personal financial security and reduce reliance on government pensions in the long term.

Pension Savings Tax Deduction

Individuals in Belgium can claim an annual deduction for contributions to approved pension savings plans. This incentive encourages personal responsibility for retirement planning, helping individuals build additional financial security to supplement state pensions.

Limit and Commercials

  • Two tracks:
  • Indexed annually.

Eligibility

  • Belgian residents investing in approved pension savings funds or insurance.
  • One plan per taxpayer per year.
  • Declared on annual tax return.

How to Claim

  • Pension fund/insurer issues certificate.
  • Enter the relevant code and amount in digital tax return (Tax-on-Web)-Tax-on-Web Login

Other Details

  • Early withdrawals may incur tax penalties.
  • Choose standard/higher ceiling clearly in return.

Long-Term Savings Deduction

This deduction benefits individuals who contribute to qualifying life insurance policies or, in some regions, mortgage repayments. It is designed to promote long-term financial planning and security, supporting wealth accumulation and home ownership.

Limit and Commercials

  • Up to ~€2,500 (2024 amount, indexed) with 30% tax reduction (~€750 tax saved)
  • Subject to formula with global deduction limits based on earnings.

Eligibility

  • Individuals contributing to qualifying long-term savings products: life assurance, repayments on older mortgages in certain regions.
  • One contract/plan per person.

How to Claim

  • Insurance provider issues certificate.
  • Enter in corresponding code on the personal tax return.

Other Details

  • Some mortgage/housing bonuses now regional; check your jurisdiction.

Interest Exemption on Savings Accounts

A smaller but popular incentive, the first €980/year of interest from regulated Belgian savings accounts is tax free. This incentive encourages households to save regularly in safe, regulated financial products, improving personal and national financial stability.

Limit and Commercials

  • Interest exemption ceiling: €980 (2025, indexed annually)

Eligibility

  • Individuals with regulated Belgian savings accounts.

How to Claim

  • Handled at source by the bank; no action needed unless threshold exceeded.

Other Details: Bank withholds tax only on amounts above ceiling.

Individual Retirement Schemes for Self-Employed (POZ/EIP)

Self-employed individuals can contribute to special pension schemes, such as the EIP or POZ, and receive favorable tax treatment. The goal is to level the retirement saving field, allowing the self-employed to build supplementary pensions akin to those available to salaried employees.

Limit and Commercials

  • Deduction ceilings for EIP/POZ schemes depend on professional income (complex formula).
  • Contributions are 100% deductible as business expenses or under separate bracket.

Eligibility

  • Self-employed without formal occupational pension, subscribing to approved pension contracts.

How to Claim

  • Contributions reported via business/professional income on tax return.
  • Contract provider supplies documentation.

Other Details: Early withdrawal penalties apply; product must conform to statutory conditions.

Family and Dependents-Related Incentives

Significant tax reductions and allowances are granted to families for childcare expenses, dependents, and use of regulated service vouchers. Additionally, mortgage and home ownership incentives offer relief, especially for longstanding or regionally qualified loans.

Childcare Expenses Tax Reduction

Families receive a deduction for formally documented childcare expenses for young children, reducing the effective cost of working parents’ access to childcare services. This incentive supports labor market participation and helps families reconcile work and family life.

Limit and Commercials

  • Tax reduction: 45% of expenses, up to €16.90 per day per child (2025).
  • No annual global ceiling (other than daily cap and child age).

Eligibility

  • Parent/legal guardian of child under 14 (21 if disabled).
  • Childcare provider must issue tax certificate; only approved institutions qualify.

How to Claim

  • Enter certificate amount under childcare expense code in Tax-on-Web.

Other Details

  • Tax reduction is refundable and can benefit single/lower-income parents more.

Personal and Dependent Allowances

Belgium automatically applies a tax-free allowance for each taxpayer, with additional increments for each dependent in the household. This mechanism directly reduces taxable income, recognizing and offsetting the financial burden of raising children or caring for dependents.

Limit and Commercials

  • Basic “tax-free amount”: ~€10,910 (2025-adjusts yearly)
  • Per child: from €1,980 (1 child) to €11,440 (3+ children), further increase for disability.

Eligibility

  • Tax residents listing eligible dependents on tax return.

How to Claim

Other Details: Reduces taxable base directly, not a separate claimable benefit.

Service Vouchers Tax Reduction

Individuals who use government-approved service vouchers to pay for domestic help receive a tax reduction. The incentive encourages the formal employment of household workers and reduces undeclared labor.

Limit and Commercials

  • 20% reduction on up to €1,790 spend per person (2024, may vary).
  • Credit thus: up to €358 tax saving per person.

Eligibility

  • Individuals purchasing government-regulated service vouchers for domestic help.
  • Must use official voucher system-providers issue annual certificate.

How to Claim

Other Details: Being phased out in Flanders as of 2025. Check with local authority before claiming.

Alimony and Other Family Incentives

Individuals making court-mandated alimony or support payments can deduct most of these payments from their taxable income. The deduction acknowledges the legal and financial obligations resulting from family decisions or court rulings.

Limit and Commercials

  • 80% deduction, no ceiling if officially mandated.

Eligibility

  • Those paying court-ordered support to an ex-spouse or children.

How to Claim

  • Include on personal tax return under alimony deduction code.

Other Details: Only official/legal support is deductible (not voluntary support).

Social and Economic Investment Incentives

Belgium incentivizes societal contributions with credits for charitable donations, investments in start-ups and SMEs, and loans to local businesses. There are also niche schemes for eco-renovations, professional education, and political donations.

Charitable Donations Credit

Generous tax credit for donations to registered charities.

Limit and Commercials

  • Tax reduction: 45% of amounts donated, min €40/charity; max 10% of net income.

Eligibility

  • Donations to registered institutions on the FPS Finance list.
  • Cash gifts; material/service gifts not normally eligible.

How to Claim

  • Charity provides attestation receipt.
  • Enter donation amount for each approved charity in tax return.

Other Details: Donations above maximum not credited, not carried forward.

Tax Shelter for Start-Ups & “Win-Win” Loan (Flanders)

Individuals making court-mandated alimony or support payments can deduct most of these payments from their taxable income. The deduction acknowledges the legal and financial obligations resulting from family decisions or court rulings.

Limit and Commercials

  • Start-ups: Tax credit-30% (regular) or 45% (micro-companies) on invested equity.
  • 'Win-win' loans: 2.5% annual tax credit, up to €75,000 lent per person (Flanders).

Eligibility

  • Direct investment in qualifying start-ups/micro-companies (criteria: age, size, sector, etc.).
  • Win-win loan: Individuals (non-relatives included) extending fixed-term loan to qualifying SME.

How to Claim

  • Company provides certificate of participation; submit with tax return.
  • Win-win loans: use annual loan statement and credit code on return.

Other Details

  • Regional details may differ; check local authority guidelines for Brussels/Wallonia.

Other Business Tax Incentives

Belgium’s array of tax benefits goes beyond the headline incentives for business and individuals, branching into sectoral incentives and practical tips important for optimal tax planning. Below, we expand on these, emphasizing clarity for claimants.

Regional R&D Grants and Premiums

Belgium’s regions-Flanders, Wallonia, and Brussels-complement federal tax measures with R&D grants, subsidies, and innovation premiums. These are not always strictly tax incentives, but they can significantly offset project costs.

Limit and Commercials

Grant amounts or premiums depend on project size, type, and region. Examples:

  • Innovation premium: A capped, tax-free bonus to employees for innovative suggestions (project must be pre-approved by regional authorities).
  • Grants: Up to 50% of eligible project costs in certain cases for SMEs.

Eligibility

  • Businesses and research institutions with R&D or innovation activities located regionally.
  • Must apply before incurring project costs; project must be innovative and have economic impact.

How to Claim

  • Documentation includes project plan, budgets, and innovation rationale.

Other Details: Comprehensive project audits often required on grant completion.

Spread Taxation on Capital Gains for Reinvestments

For businesses realizing capital gains (e.g., asset sales), Belgium may allow the taxation of gains to be spread, or deferred, if reinvested in qualifying fixed assets.

Limit and Commercials

  • Capital gain is not immediately taxed but reintroduced over the depreciation period of the new investment.
  • Helps with cash flow management and encourages reinvestment.

Eligibility

  • Asset sold must be fixed and tangible, and proceeds must be reinvested in specific classes of fixed assets within set deadlines.

How to Claim

  • Declare the operation in the corporate tax return; schedule correct depreciation and include all supporting documents.

Other Details: If reinvestment does not occur on time, deferred tax is called in.

Other Personal and Niche Incentives

Regional Eco-Renovation Tax Incentives

Promoting energy efficiency and sustainable housing is a priority in all Belgian regions, with tax and grant incentives for eco-friendly renovations.

Limit and Commercials

  • Varies widely by region: can include tax deductions, direct grants, or interest-subsidized renovation loans.
  • Recent example: Flanders’ “My Renovation Premium” offers partial subsidies based on works and household income.

Eligibility

  • Property owners undertaking qualifying works (insulation, efficient heating, solar systems, windows, etc.).
  • Conditions vary (some income-tested, property must be principal residence, certified contractors).

How to Claim

Apply via regional portals after works completion with invoices and proof of payment.

Other Details: Tax deduction schemes have largely shifted to grants; check with local administration for latest updates.

Educational and Training Expenses

A range of professional upskilling and continuing education expenses can be deductibly claimed by individuals.

Limit and Commercials

  • Deduction for “professional expenses” linked to enhancing income.
  • Must be demonstrably linked to your main source of taxable income.

Eligibility

  • Employees, self-employed, or liberal professionals undergoing job-related training.

How to Claim

  • List costs as professional expenses in the annual tax return.
  • Retain all receipts and training certificates.

Other Details: Language courses and some technical further training often qualify.

Political Donations Credit

To foster civic engagement, Belgium reduces personal income tax by 45% of donations to accredited political parties (with established limits).

Limit and Commercials

  • Minimum: €40/donee. Maximum: €500 per party per year (as per recent legislation).

Eligibility

  • Belgian residents donating to recognized parties.

How to Claim

  • Use receipts delivered by the party on the tax return under “gifts to political parties.”

Other Details: Excess donations are not deductible or carried over.

 

How to Claim Tax Incentives in Belgium

The standard process for claiming Belgian tax incentives:

  1. File the annual personal or corporate tax return (electronically on Tax-on-Web for individuals: https://finance.belgium.be/en/E-services/overview or Biztax for companies: https://finances.belgium.be/en/E-services/biztax).
  2. Enter the correct codes for each incentive; documentation is not submitted but must be retained (receipts, certificates, contracts).
  3. For incentives with regional variation or new schemes, consult regional government portals (e.g., Vlaamse Belastingdienst, SPF Finances, IRISbox).
  4. For complex, high-value, or international transactions, consider an advance tax ruling
  5. Ensure all eligibility criteria are met. Many incentives are “automatic” if you claim them correctly, but audits can claw back benefits if conditions fail to be met.
  6. Amendments/corrections: Submit rectifications promptly-rules for corporate and VAT claims are strict from 2025 onwards.
  7. Professional help: When in doubt, consult an accredited Belgian accountant or tax advisor.

Note: Some incentives are subject to yearly policy revisions and regional reforms-always verify current status before making financial commitments. 

All Tax Incentives in Belgium: Summary Table

Incentive Name

Type/Format

Limit/Rate

Eligibility

Key How to Claim/Notes

Innovation Income Deduction (IID)

Deduction

85% of net qualified IP income

Companies with own eligible IP; nexus applies

Corporate tax return (Biztax); keep IP docs

R&D Investment Deduction/Tax Credit

Deduction/Credit

Up to 40% (SME thematic assets); 13.5%+

Invest in new R&D assets

Form 275U/Biztax; pick deduction or credit

R&D Payroll Tax Exemption

Exemption

80% of payroll withholding tax

R&D staff with STEM/technical degrees

Monthly via payroll; project doc for BELSPO

SME Reduced Corporate Tax Rate

Reduced Rate

20% on first €100,000 profit (rest 25%)

SME status; min. director salary

Applied on tax return/auto if eligible

Investment Deduction (General/Digital, etc.)

Deduction

8% basic; 20% digital; up to 40% for SME

New fixed asset/investment

Form 275U/tax return; codes for each category

120% E-Invoicing Cost Deduction (2024–2027)

Superdeduction

120% of eligible digitalization costs

SMEs/self-employed; e-invoicing software/services

Tax return special code; keep invoices

20% Digital Investment Deduction (2025+)

Deduction

20% of capitalized digital assets

Capitalized digital investments

Form 275U/tax return; hardware/software only

Deduction for Risk Capital (Incremental NID)

Deduction

~0.9–1.4% of equity increment

Companies growing net equity

Tax return; keep equity records

100% Capital Gains Exemption (DRD Regime)

Exemption

100% on eligible shares

1-year hold, min. stake, no disallowed paymts

Corporate return; show holding/subsidiary docs

Tax Shelter—Audiovisual/Film

Exemption/Shelter

Deduct up to % of profits (yearly rule)

Invest in certified productions

Via registered intermediary, claim on return

Expatriate Tax Regime

Exemption

30% tax-free allowance (max €90,000/yr)

Foreign hires, salary/skills test

Employer applies online within 3 months

Pension Savings Deduction

Deduction

Up to €1,050 (30%) or €1,350 (25%) contrib

Anyone in recognized pension savings plan

Code/certificate on personal tax return

Long-Term Savings Deduction

Deduction

Up to ~€2,500 at 30% per year

Life insurance, some old mortgages

Code/certificate on tax return

Interest Exemption (Savings Accounts)

Exemption

Up to €980 interest/yr

Regulated Belgian savings accounts

Applied by bank at source

Self-Employed Pension Schemes (EIP/POZ)

Deduction

100% contrib. (ceiling: income-based)

Self-employed without pension plan

Certificate; reported as business expense

Childcare Expenses Tax Reduction

Tax Reduction

45% of costs, up to €16.90/day/child

Children <14; certified providers

Certificate/amount on personal return

Personal/Dependent Allowances

Exemption

€10,910 base + €1,980–€11,440 per child

All residents; qualified dependents

Auto on tax return; declare household

Service Vouchers

Tax Credit

20% up to €1,790 spend/person

Use of regulated service vouchers

Cert. from provider; note regional limits

Mortgage/Housing Deductions

Deduction

Varies by region, loan & family

Approved (often old) home loan; region

Cert/code on tax return; region specific

Alimony Deduction

Deduction

80% of legal alimony paid

Court-ordered only

Code/amount on tax return

Charitable Donations Credit

Tax Credit

45% of donations (€40+; max 10% of income)

Donations to approved institutions

Receipt/certificate; code on tax return

Tax Shelter for Start-Ups

Credit

30% (start-up), 45% (micro-co) invested

Direct investment in qualifying new companies

Certificate; code on tax return

Win-Win Loan (Flanders)

Tax Credit

2.5%/yr, €75,000 cap/loaner

Lending to SME (regional)

Statement/code on regional return

Regional Eco-Renovation Grants

Grant/Deduction

% of works/grant by region

Homeowners—eco works; regional rules

Apply via local portal with invoices

Political Donations Credit

Tax Credit

45% (min. €40, max. €500/party)

Donations to recognized political parties

Receipt from party; code on tax ret

Conclusion

Belgium’s structured incentives, both federal and regional, can be transformative-slashing effective tax rates for innovative businesses, supporting families, and stimulating sustainable investment among individuals. For optimal results, proactively research eligibility, claim all relevant benefits annually, and seek professional advice for complex or high-value claims. Always ensure current criteria through official links before making strategic financial decisions. In Belgium, informed taxpayers are rewarded not just by policy-but by truly advantageous savings.

Government Resources for Further Guidance

About the Author
author-img

Rajan Rauniyar

Senior Content Writer- International
social icons

I’m a Senior Content Writer at ClearTax, specializing in e-invoicing, VAT, and Tax compliance. Over the years, I’ve researched and written everything from blog posts to whitepapers and product guides, helping ClearTax expand in Malaysia, KSA, UAE, Singapore, Belgium, and beyond. My goal is to write the most comprehensive, understandable, readable, and accurate content on any topic that has ever existed on the internet. Read more

Index