🇧🇪 What is the mobility budget?

The mobility budget is a Belgian legislation that allows companies to offer an eco-friendlier tailor-made mobility budget to either employees with a company car or employees who qualify for one, within a favourable tax regime. 

The mobility budget can be used in 3 pillars:

Pillar 1

The employee can choose an eco-friendlier car (a vehicle that emits less CO2, an electric car, etc.). Benefits: the same tax and social treatment as a classic company car for both the employer and the employee.

Pillar 2

With the remaining budget (or the entire budget if no car was chosen), the employee can pay for more sustainable modes of travel.

• soft mobility (e-step, hoverboard, bike, etc.)
• public transport
• organised shared transport
• shared cars, carpooling
• mobility services that combine the modes mentioned above

This budget is exempt from social security contributions and withholding tax. For the employer, it is a fully deductible professional expense.

💡 It is also possible to finance housing costs (rent and monthly interest & principal payments of loans) if the employee lives within a 10 km radius of the usual place of work, or if he/she works from home for most of the time (>50%).

Pillar 3

The budget that hasn't been used is paid out in cash to the employee once a year (31/12). For the employee, this is considered a professional income that is fully exempt from tax, but subject to a personal social security contribution of 38.07%. For the employer, this is a fully deductible professional expense (no social contributions).

💡 For more information, please visit the Mobility & Transport website of the government.