Belgium: Tax measures in budget framework 2026-2029

The Belgian federal government reached an agreement on the budget framework for the period 2026-2029 that includes the following proposed direct and indirect tax measures:

• The standard value added tax (VAT) rate would remain at 21%, but reduced VAT rates on certain goods and services would increase:
  • Hotels, campings, sports/leisure activities, and take-away meals: VAT increased from 6% to 12%
  • Pesticides: VAT increased from 12% to 21%
  • Non-alcoholic beverages in restaurants/cafés: VAT decreased from 21% to 12%
• Tax on securities accounts doubled from 0.15% to 0.3%
• Premium tax on non-life insurance increased from 9.25% to 9.6%; new bank tax introduced
• Withholding tax on “VVPRbis-shares” increased from 15% to 18%; taxation of liquidation reserves increased
• Wage withholding tax exemptions (for shift/night work, researchers, etc.) frozen in 2028 and 2029.
• Planned increase of the tax-free amount for individual income tax postponed to 2030
• Increase of the work bonus for low-wage earners and reduction of the special social security contribution to start in 2028
• Favorable tax regime for copyright income becomes less attractive: lump-sum deduction (up to 50%) eliminated
• Excise duties on natural gas, heating oil, petrol, and diesel increased; excise duty on electricity decreased
• Application of € 2 tax to small parcels from outside the EU
• Flight (embarkation) tax for long-distance flights (over 500 km) increased from € 5 to € 10 (from 2027)
• Flight tax for short-distance flights increased to € 10.50 in 2028 and € 11 from 2029

Read a November 2025 report prepared by the KPMG member firm in Belgium