Belgium’s federal cabinet has confirmed that the long-standing tax exemption on unemployment benefits will be scrapped from 1 July 2026. The measure, reported by *The Brussels Times* on 23 February, will see some 36,000 benefit recipients receive reduced payments—€165 per month on average—through automatic withholding.
Although largely framed as a domestic welfare reform, the change also affects foreign residents who have lost jobs during their Belgian assignment and are relying on interim unemployment allowances. Expatriates who have paid into Belgium’s social-security system for the requisite 312 days over 21 months are eligible for the same benefits as nationals; those payments will now be subject to standard income tax.
Foreign workers must therefore factor in a smaller safety net when negotiating relocation packages. Employers often guarantee a “hypothetical tax” approach in severance scenarios; HR departments should revisit those clauses to ensure assignees are not left with unexpected liabilities. Mobility advisers recommend building a 10 % gross-up buffer into termination budgets for assignments scheduled to end after mid-2026.
![Belgium to End Tax Break on Unemployment Benefits, Creating New Cost for Foreign Residents]()
For expatriates reassessing their stay in Belgium in light of these tax changes, VisaHQ (https://www.visahq.com/belgium/) can streamline the process of extending visas, switching permit categories, or securing documentation for family members. Their step-by-step online platform and live support help ensure compliance with Belgian immigration rules, letting employees and HR teams concentrate on financial planning rather than paperwork.
The reform is part of a broader overhaul aimed at encouraging rapid re-entry into the workforce. Critics argue that lowering net benefits could push vulnerable groups—particularly non-EU jobseekers with language barriers—into precarious work or force a premature return to their home country, undercutting Belgium’s attractiveness as a long-term destination for skilled migrants.
Practically, affected individuals will first feel the change when filing their 2026 tax returns in 2027. The National Employment Office (ONEM/RVA) has started sending digital notices via the e-Box system, and a final wave of letters will go out in March. Benefit recipients who relocate abroad after losing their job must still file a Belgian tax return for 2026, making timely de-registration with their commune and a forwarding address essential.
Although largely framed as a domestic welfare reform, the change also affects foreign residents who have lost jobs during their Belgian assignment and are relying on interim unemployment allowances. Expatriates who have paid into Belgium’s social-security system for the requisite 312 days over 21 months are eligible for the same benefits as nationals; those payments will now be subject to standard income tax.
Foreign workers must therefore factor in a smaller safety net when negotiating relocation packages. Employers often guarantee a “hypothetical tax” approach in severance scenarios; HR departments should revisit those clauses to ensure assignees are not left with unexpected liabilities. Mobility advisers recommend building a 10 % gross-up buffer into termination budgets for assignments scheduled to end after mid-2026.
For expatriates reassessing their stay in Belgium in light of these tax changes, VisaHQ (https://www.visahq.com/belgium/) can streamline the process of extending visas, switching permit categories, or securing documentation for family members. Their step-by-step online platform and live support help ensure compliance with Belgian immigration rules, letting employees and HR teams concentrate on financial planning rather than paperwork.
The reform is part of a broader overhaul aimed at encouraging rapid re-entry into the workforce. Critics argue that lowering net benefits could push vulnerable groups—particularly non-EU jobseekers with language barriers—into precarious work or force a premature return to their home country, undercutting Belgium’s attractiveness as a long-term destination for skilled migrants.
Practically, affected individuals will first feel the change when filing their 2026 tax returns in 2027. The National Employment Office (ONEM/RVA) has started sending digital notices via the e-Box system, and a final wave of letters will go out in March. Benefit recipients who relocate abroad after losing their job must still file a Belgian tax return for 2026, making timely de-registration with their commune and a forwarding address essential.
