Stock Plans in Belgium

Summary Table
(Updated as of August 2023)

The tax implications for offering stock awards to participants in Belgium are quite complicated and need close attention to avoid missed opportunities for more advantageous tax treatment. Stock options can be taxed either at grant or at exercise depending on whether the employee accepts the “offer” within 60 days. The date of offer is the date the grant is communicated to the employee, which may not be the same as the grant date for U.S. legal purposes. Companies offering stock options should proactively communicate the offer to employees as the timing of the acceptance makes a difference to their ultimate tax liability. Although there are many drawbacks to taxation at grant, it can be tax efficient for the employee. Furthermore, stock awards are likely subject to social tax in Belgium, and both the employee and employer social tax rates are high compared to most other countries and are not subject to an earnings’ cap.  

Be aware that restricted stock awards (but not units) are likely taxed at grant.  

As an EU member state, Belgium adheres to the EU regulations and guidelines for securities, data privacy and age discrimination laws. Companies should review these rules along with any local country variations with their advisors before offering stock plans to employees in Belgium.