by Eline Demeyere and Tine Van Saet
7% additional tax for non-residents under scrutiny
The 7% additional tax for non-residents is facing increasing scrutiny. On 12 March 2026, the Court of Justice of the European Union ruled that this tax regime infringes the free movement of workers within the EU.
Following this ruling, the Belgian Council of Ministers approved a preliminary draft law on 18 July 2026 to amend the regime. A complete abolition of the additional tax is not currently on the table. However, under certain conditions, non-residents could become eligible for a lower tax rate.
What is the 7% additional tax for non-residents?
Belgian tax residents pay an additional municipal tax on top of their personal income tax. The applicable rate depends on the municipality in which they are domiciled on 1 January of the tax assessment year.
The situation is different for non-residents. They do not always have a tax domicile in Belgium to which a municipal tax rate can be linked. For example, an employee may live in the Netherlands while earning employment income that is taxable in Belgium.
For this reason, non-residents are subject to a federal additional tax of 7% on the tax due, instead of the additional municipal tax. This regime was intended to ensure comparable tax treatment for residents and non-residents.
What will change for the additional tax on non-residents?
According to the Council of Ministers' announcement, the federal additional tax of 7% will not be abolished entirely.
Instead, the preliminary draft law would allow non-residents to demonstrate that they can be linked to a Belgian municipality where the additional municipal tax rate is lower than 7%. This could enable certain non-residents to benefit from a reduced additional tax.
The specific conditions are not yet known, as the preliminary draft law still needs to be submitted to the Council of State for its opinion.
As a result, several questions remain unanswered, including:
Which criteria will be used to determine the relevant municipality?
What supporting documents will taxpayers need to provide?
Will the reduced rate be applied automatically, or will taxpayers need to request it?
For non-residents who have paid the federal additional tax in previous years, the ruling also remains relevant in relation to potential opportunities to reclaim tax already paid.
Which Belgian municipalities have a tax rate below 7%?
If the proposed legislative amendment is approved, Belgian municipalities with an additional municipal tax rate below 7% could become relevant for non-residents.
The municipalities listed below apply a rate of less than 7%.
| Rate | Municipalities |
|---|---|
0.0% | Knokke-Heist |
3.0% | Middelkerke |
4.9% | Brussels |
5.0% | Aartselaar, Beveren-Kruibeke-Zwijndrecht, De Haan, De Panne, Herstappe, Koksijde, Machelen, Nieuwpoort, Schaarbeek, Schilde, Wommelgem, Zaventem |
5.4% | Sint-Lambrechts-Woluwe |
5.5% | Braine-l’Alleud, Kapellen, Sint-Martens-Latem, Wijnegem |
5.6% | Uccle |
5.7% | Hoogstraten, Kontich, Sint-Pieters-Woluwe, Waterloo |
5.8% | Etterbeek, Lasne |
5.9% | Zulte |
6.0% | Amel, Ardooie, Bièvre, Blankenberge, Brasschaat, Büllingen, Dessel, Jemeppe-sur-Sambre, Lommel, Oudergem, Pelt, Ravels, Rouvroy, Sankt Vith, Sint-Genesius-Rode, Vresse-sur-Semois |
6.3% | Saint-Gilles |
6.5% | Aalter, Daverdisse, Duffel, Edegem, Ganshoren, Gedinne, Ghent, Keerbergen, Lille, Lokeren, Manhay, Mechelen, Merksplas, Olen, Ostend, Oud-Heverlee, Oudsbergen, Ranst, Rumst, Schoten, Sint-Agatha-Berchem, Sint-Joost-ten-Node, Wezembeek-Oppem, Zoersel |
6.6% | La Hulpe, Rixensart |
6.7% | Haacht, Leuven, Lummen, Steenokkerzeel, Tervuren |
6.8% | Hoeilaart, Jalhay, Lontzen, Rotselaar, Schelle, Waregem, Wevelgem |
6.9% | Asse, Beerse, Beersel, Bruges, Deinze, Destelbergen, Dilbeek, Grez-Doiceau, Lanaken, Lochristi, Maldegem, Nazareth-De Pinte, Oreye, Ternat, Watermaal-Bosvoorde, Zwalm |
Are any other changes planned for non-residents?
The preliminary draft law is not limited to the 7% additional tax.
According to the Council of Ministers' announcement, rented properties generating real estate income of less than €2,500 could also become subject to non-resident income tax in certain circumstances.
The exact scope of this proposed change is not yet clear. Further details will become available once the preliminary draft law has been developed further and submitted to the Belgian Chamber of Representatives.
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Eline Demeyere
Senior Manager International eline.demeyere@vdl.be
Tine Van Saet
Senior Advisor International tine.vansaet@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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