Summary

Following the Easter Agreement, the federal government has taken a new step in the further implementation of the coalition agreement. After a final night of negotiations, a political agreement was reached on Monday morning, 21 July 2025. Starting in 2026, the Belgian federal government will implement a series of tax measures aimed at making work more financially rewarding. Employees, pensioners, and families with children will all feel the impact—some positively, others less so. Although the summer agreement still needs to be translated into concrete legislation, it already provides a clear picture of the direction the government wants to take. Below is an overview of the most important tax measures from the Summer Agreement.

1. More Net Income for those who work

Workers will see an increase in their net pay, thanks to a gradual increase in the lump-sum tax free allowance, the portion of income not subject to tax. This allowance will rise from EUR 10.910 in 2025 to EUR 15.300 by 2029. A first step will already be implemented in 2026. This change will benefit all workers, though low and middle-income earners will gain the most in relative terms.

2. Equal increase of the lump-sum tax-free amount for dependent children

Those who have dependent children, receive an additional tax free allowance. Currently, the allowance increases with the number of children:

1 child: EUR 1.980
2 children: EUR 5.110
3 children: EUR 11.440
4 children: EUR 18.510

The government plans to move toward a fixed amount per child. As a first step, the allowance for the first child will increase to EUR 2.650. By 2029, the amounts for the first and second child will be aligned. The allowances for three or more children will no longer be indexed, and current benefits for children with disabilities will remain unchanged. Additionally, the allowance for single parents will, starting in 2029, be limited to actual single parents. Individuals who are in a de facto cohabitation – but are considered single for tax purposes – will no longer be eligible.

3. Reform of the special social security contribution

The special social security contribution, a contribution which was introduced back in 1994 as an additional funding of the Belgian social security, will be reformed and reduced in favour of single taxpayers, who could gain up to EUR 365 more in net income per year.

4. Dual-income households will benefit, single-income households will lose out

Households where only one partner works will lose out under the reform. The marital quotient - a tax advantage for married or legally cohabiting couples where one partner has little or no income - will be phased out.

Currently, up to 30% of the higher-earning spouse’s income can be attributed to the lower-earning (or non-earning) spouse, reducing their overall tax burden by taking advantage of the progressive tax brackets. This change will have a significant impact for couples where one partner earns little or no income.

By 2029, this advantage will be halved for non-retired couples. For retired couples, the phase-out will occur very gradually over 20 years.

5. End of tax reduction for unemployment Benefits

The tax reduction on unemployment benefits will be phased out. The maximum loss can reach up to EUR 223 per month.

6. Increase of job bonus

Workers with low wages will see a substantial increase in the fiscal job bonus, as an extra support to strengthen their purchase power. The fiscal job bonus is calculated as a percentage of the social work bonus (the latter results in a reduction of the social security contributions). The fiscal job bonus will be increased (from 33,14%) to 35% of the social job bonus, with the aim to make employment more attractive. For the lowest wages the job bonus will even be increased (from 52,54%) to 72% of the social job bonus. Consequently, for the minimum wage the gross amount will be equal to the net amount in 2029.

7. Addressing improper use of management companies

To curb tax optimization through management companies, the minimum managerial remuneration (towards the company director) required to qualify for the reduced corporate income tax rate of 20% (on the first EUR 100.000 taxable profit) will be increased from EUR 45.000 up to EUR 50.000 and subject to further indexation.

A company director’s income typically consists of the periodical gross director income, but can also include various benefits in kind (company car, smartphone, laptop, etc.) and it can even be complemented with tantièmes. In the future, for benefiting from the reduced corporate income tax rate, only up to maximum 20% of the annual gross director income may consist of lump-sum benefits in kind. This may cause certain company directors who have a management company to revisit their “remuneration package”. Of course, additional bonuses on top of the gross director income will still be possible.

8. Working after retirement becomes more attractive

Currently, retirees who continue working after their retirement are taxed at the regular progressive tax rates (up to 50% + communal tax). In the future, a reduced flat tax rate of 33% will apply to these earnings.

9. New “Vinted exemption” for secondhand sales

Selling used items via platforms like Vinted, Marketplace, or 2dehands.be will become tax-exempt up to EUR 2.000 per year. Even frequent sellers of secondhand goods will not be taxed as long as they stay under this limit.

10. Copyrights regime

The tax regime for copyrights can once again be applied to computer programs starting in 2026, after the IT sector was explicitly excluded as part of a reform in early 2023. Copyrights are fiscally attractive because they are considered movable income. The tax burden on the first EUR 20.100 of copyright income is limited to 7,5% (i.e. 15% tax rate after application of a 50% lump-sum cost deduction).

The Summer Agreement retains the legal text of the reform and adds “computer programs” to it. However, there is no return to the old, broad scope of application as such.

11. Night work

Currently, night work is generally prohibited, but it is allowed through a number of exceptions. That general rule will be changed.

The definition of 'night work' will now only apply between midnight and 5 a.m. in the e-commerce and logistics sectors. Currently, it applies from 8 p.m. in the evening until 6 a.m. New night workers will still be able to receive limited premiums for working between 8 p.m. and 6 a.m., but only if they actually work after midnight. The measure does not apply to employees who are already working night shifts — a concession to criticism from, among others, the trade unions.

The procedures for introducing night work will also be modified, but the exact content still needs to be worked out.

12. Voluntary overtime hours

The current number of voluntary overtime hours that an employee can work will be increased from 120 to 360 hours, 240 of which will be free of personal income tax and social security contributions, and for which there will be no overtime pay. Such voluntary overtime will require a prior written agreement, valid for a fixed term of one year, and tacitly renewed each time for a new year. Either party can terminate that agreement subject to a notice period.

13. Obligation to include hourly schedules in labour regulations

Measures are being considered to ease the burden of the obligation to include all hourly schedules in labor regulations. This would include the possibility of establishing a “framework for working hours” that sets the limits within which hourly schedules are possible. These changes would be subject to strict conditions and would be framed.

14. Minimum weekly working hours (part-time employees)

According to the Coalition Agreement, the condition that weekly working hours should (in principle) not be less than one-third of weekly working hours in full-time employment would be abolished. However, this abolition is linked to a discussion on the prohibition of on-call contracts.

15. Capping of the notice period

In case of dismissal by the employer, the notice period would be limited to 52 weeks once the employee reaches 17 years of seniority. That measure would apply only to contracts signed as of Jan. 1, 2026, but in practice will only take effect after about 17 years, because only after 17 years of seniority is an employee currently entitled to 54 weeks' notice. For employees already in service, nothing will change.

16. Annualization

A preliminary draft law on the annualization of working time, which allows more to be worked in certain periods and less in others, provided the average annual working time is respected, will also be submitted to the NAC for its opinion before the government considers it.

17. Pensions

Pension reform is structured around a bonus-malus mechanism:

Those who continue to work beyond the legal retirement age will receive a pension bonus of 2% per additional year, increasing to 4% from 2030 and 5% from 2035.
Those who retire early without a career of at least 35 years of full-time work (7020 days worked) receive a malus of the same magnitude.

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Philip Maertens

Partner philip.maertens@vialto.com

Nic Boydens

Partner nic.boydens@vialto.com

Bart Elias

Partner bart.elias@vialto.com

Further information on Vialto Partners can be found here: www.vialtopartners.com

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