Tax benefits of childcare in Belgium

Overview of tax benefits in Belgium

Belgium offers three key tax benefits for childcare: the tax reduction, the childcare allowance, and service vouchers. Together, these can reduce the effective cost of childcare by 30-45%.

The three pillars:

1. Childcare tax reduction: A federal tax reduction of €15.70 per care day per child (2026 amount). This applies to all forms of recognized childcare.
2. Childcare allowance (Groeipakket): A Flemish allowance on top of child benefit, depending on your income and type of care.
3. Service vouchers: For household tasks linked to family support, with 20% tax benefit.

Who qualifies?

• Families with children up to 14 years (up to 21 years with severe disability)
• The care must be recognized or you must be registered as an employer
• You need a tax certificate from the care provider

Childcare allowance

The childcare allowance is a monthly amount you receive on top of regular child benefit (Groeipakket). The amount depends on your family income and type of care.

The allowance is automatically calculated by your payment provider. You don't need to apply separately if your child is in recognized care.

With at-home care (nanny):

If your nanny is registered through Nanny's payroll formula, you may qualify for the childcare allowance. We help with administrative formalities.

Childcare tax reduction

You receive a tax reduction of €15.70 per care day per child on your tax return. This is a direct reduction of your taxes owed, not just a deduction.

How it works:

1. Your care provider (or you as employer via Nanny's) issues a tax certificate
2. You declare childcare costs in your annual tax return
3. The reduction is automatically calculated

Example:

Your nanny cares for your two children 220 days per year:

• 220 days x 2 children x €15.70 = €6,908 tax reduction per year

Service vouchers for family support

Service vouchers cost €10 per hour in Flanders, of which you get 20% back through tax reduction (effective cost: €8/hour). They are intended for household tasks, not childcare.

Allowed with service vouchers: Cleaning, ironing, laundry, cooking, groceries.

Not allowed: Childcare, gardening, repairs, pet care.

Combination with a nanny:

Many families combine a nanny (for childcare) with household help via service vouchers. This is cost-effective as you only pay €8/hour effectively for household tasks.

Maximum: 500 vouchers per person per year in Flanders (2,000 for disabled family members).

Specific regulations in Flanders

Flanders offers additional support for childcare beyond federal benefits through the Groeipakket and subsidies for recognized care. As a Flemish family, you benefit from the most comprehensive support in Belgium.

Groeipakket includes: base amount (€173.20/child/month), social supplement, childcare allowance, and school allowance.

Income-based rates apply to subsidized care. This doesn't directly apply to home nannies, but the tax reduction partially compensates.

How to apply for benefits?

Most benefits are calculated automatically or are easy to apply for through your tax return. Here's a step-by-step guide.

Step 1: Childcare tax reduction - Your care provider issues a tax certificate annually. Enter the amount in your tax return.

Step 2: Childcare allowance - Automatically calculated by your payment provider.

Step 3: Service vouchers - Register on Sodexo or Pluxee website. Order online. The 20% tax reduction is automatically processed.

At Nanny's, we gladly help with the administrative side. Contact us for a no-obligation conversation.

Frequently Asked Questions