Brussels – The Brussels Parliament has approved cuts to Members of Parliament (MP) salaries, increased tourist taxes, and extended the gift tax rules to five years, with the aim of saving €26.5 million, effective from the start of the upcoming parliamentary year. The decision is still under discussion with other parliaments, according to reports.
Mathias Vanden Borre, an MP from the N-VA party, expressed support for this decision, noting that it is primarily symbolic but necessary due to the financial challenges facing Brussels. He acknowledged the pressures from the federal coalition that facilitated this change.
Stijn Bex, leader of the Green party, indicated that these measures are part of broader efforts to manage the region’s budget issues. Beyond salary reductions, the parliament has implemented additional strategies aimed at increasing revenue.
“After years of pressure from the PVDA (Workers’ Party of Belgium), Brussels parliamentarians are no longer the best paid in the country,”
PVDA MP Jan Busselen celebrated the move, asserting that this represents progress against political privileges he claimed the party has been challenging for some time.
“This is a first step forward; MPs’ allowances are finally being reduced, and that’s the result of a fight against political privileges that we, the PVDA, have been waging for quite some time,”
Brussels Parliament Reforming Gift and Tourist Taxes to Address Budget Shortfalls
On July 11, 2025, the Brussels Parliament passed significant legislation that extended the timeframe for gift registration from three to five years. This stipulates that if an unregistered gift is given and the donor passes away within five years, it may still be subject to taxation. This adjustment aligns Brussels with existing tax regulations in other regions of Belgium.
Officials noted that the intention behind this measure is to motivate individuals to officially register gifts, facilitating lower taxes in the present. Though initially proposed by various parties, it only recently gained traction and passed despite opposition from some factions.
The Brussels government is enacting these financial policies to rectify ongoing budget deficits. They emphasized that changing the handling of gifts could emulate successful experiences in Wallonia, where similar regulations have led to an increase in registered gifts and tax revenue. Brussels estimates that this change could yield an additional €4 to €6 million in annual revenue.
In conjunction with gift tax reforms, the Brussels Parliament is also pursuing other fiscal adjustments. One notable measure is the increased tax on tourist accommodations, where hotel stays will now incur an additional €1 per night, totaling €5 for hotels and €4 for campsites or Airbnbs. This change received broad approval and is anticipated to generate an extra €4.5 million annually.
Moreover, a permanent €10 reduction in family allowance benefits for certain children born before December 1, 2019, will remain in effect. This reduction is designed to maintain stability in the child benefit framework amid decreased federal funding while not impacting child poverty. The adjustments aim to achieve savings of €26.5 million by 2026, particularly affecting families that opted for the previous benefit system.
