A new boundary element method (BEM) formulation has been developed for the computation of 3D eddy currents in both magnetic and conductive regions. The modified magnetic vector potential A∗ in the active regions and the reduced magnetic scalar potential φ in the air are used as unknown variables. The formulation is limited to low‐frequency magneto‐harmonic problems associated to linear, homogeneous, isotropic, and simply‐connected regions. In such a configuration, it leads to accurate results with a reduced number of degrees of freedom located on a surface mesh delimiting the air/material interface.