On January 31, 2025, Belgium presented a new federal government agreement announcing major tax policy changes that will affect entrepreneurship and competitiveness.
Some first key highlights based on the info currently available:
- Competitiveness: labour costs for low and middle incomes will be reduced, but the impact might be mitigated due to updated compensation practices related to certain tax shift measures that could affect employee net pay. The phased implementation requires careful analysis regarding overall cost & competitiveness
- Investor Attractiveness: changes to taxes on capital gains and carried interest as well as incentives for eco-friendly investments and measures to encourage people to invest their savings in the economy may prompt a review of investment strategies.
- International Talent & innovation: an improved expat regime aims to attract global talent, crucial for fostering innovation. The R&D sector may benefit from announced reduced administrative burdens and an intention for a more stable legal framework.
The announced reforms aim to balance the budget through structural changes and contributions from various stakeholders.
For more details, join our webinar on February 7th, to explore these changes and their business implications. Register here.
Stay tuned for more detailed newsflashes and in-depth analyses of selected measures.
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