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Federal Government Agreement 2025–2029 : Overview of Key Tax and Social Measures in the Government Agreement 2025–2029

Since February 3, 2025, after five and a half months of waiting, Belgium has a new center-right federal government composed of a coalition of five parties : the Flemish nationalists (NVA), the French-speaking liberals (MR), the French-speaking centrists (Les Engagés), the Flemish Christian Democrats (CD&V), and the Flemish socialists (Vooruit).

The main measures that this government plans to implement during the 2025–2029 legislature are outlined in a government agreement. This agreement includes several tax and social reforms that will impact both businesses and individuals.

In this newsletter, we analyze the key tax and social provisions of this agreement and their concrete implications for our clients.

It is noted that these measures are not yet in effect but are expected to be adopted soon. As is customary in Belgium, it is not excluded that the final measures adopted may differ slightly from those provided in the government agreement.

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Below is a summary of the main measures :

CORPORATE TAXATION

  • Reform of the RDT (Definitively Taxed Income) regime : Transition from a deduction system to an exemption system and an increase in the qualifying participation threshold (from €2.5M to €4M for large companies).
  • Capital gains tax on RDT SICAVs : Introduction of a 5% tax on realized capital gains.
  • Increase in withholding tax on liquidation reserves : Rate raised from 5% to 6.5% (total taxation increasing from 13.64% to 15%).
  • Exit tax : The emigration of a company without an establishment in Belgium will be subject to taxation similar to liquidation.

INDIVIDUAL TAXATION

  • New tax on financial capital gains : A 10% solidarity contribution on certain capital gains, with exemptions and progressive rates.
  • Reform of the tax regime for expatriates : Increase in tax exemption from 30% to 35% and removal of the €90,000 cap.
  • Creation of a tax framework for "carried interest" : Maximum tax rate of 30% on investment fund managers’ financial income.

SOCIAL MEASURES

  • Reintroduction of the probation period : Simplified dismissal with a reduced notice period of one week during the first six months.
  • Increase in voluntary overtime hours : Annual cap raised to 360 hours, with no additional pay for 240 of these hours.
  • Reform of flexi-jobs : Income ceiling raised to €18,000 per year, extended to all sectors, and removal of certain restrictions.
  • Stricter conditions for early retirement : Only years with at least six months of actual work will be counted.
  • Introduction of a pension malus and bonus : Reduction (up to 5% per year) for early retirement ; increase (up to 5% per year) for delayed retirement.
  • Cap on severance pay : Notice period limited to 52 weeks for new contracts.
  • Unemployment reform : Faster reduction of unemployment benefits and a maximum duration of two years.
  • Creation of a mandatory supplementary pension : A minimum employer contribution of 3% of gross salary by 2035.