Last week, the law on miscellaneous provisions was voted on. The final text is still to be published in the Belgian Official Gazette. This new legislation not only brings important changes to the Belgian expat regime (see our previous update), but is also a game changer with respect to specific family related tax rules.
Reduction of the tax deduction for alimony payments
In Belgium alimony payments are typically tax deductible for 80%. This results in a benefit calculated at the applicable top tax rate (max. 50% to be increased with communal taxes). For example, if a taxpayer pays EUR 8.000 alimony for the maintenance of a child during the taxable period, and assuming that all relevant conditions for the deduction are met, then an amount of EUR 6.400 (80% of EUR 8.000) can be deducted from the net taxable income. This results in a tax saving of EUR 3.200 (6.400 * 50%), which is in practice even more beneficial due to the saving of communal taxes. In principle, alimony is taxable for 80% in the hands of the recipient who is entitled to it. In practice, when the beneficiary is a child, there will in most cases not be effective taxation.
However, the tax deduction for alimony payments will be gradually reduced from 80% to 50% as follows:
The taxable part of the alimony payments received will be gradually reduced in the same way.
Revisiting the example above, taking into account the gradual reduction of the tax benefit, the taxpayer who paid EUR 8.000 alimony will—as of income year 2025—thus no longer receive a tax benefit of EUR 3.200, but the benefit will be reduced to 2.800 (for income year 2025). It will further decrease to EUR 2.400 (for income year 2026) and ultimately to EUR 2.000 (for income year 2027).
This reduction of the tax benefit in Belgium will most likely not have been factored in when the amount of the alimony was determined.
Moreover, alimony payments to beneficiaries who are resident in countries outside the European Economic Area (EEA) or Switzerland will no longer be deductible as of income year 2025 (tax year 2026). Alimony payments made to a person who is not a resident of a Member State of the EEA or Switzerland will, on the other hand, no longer be taxable under the non-resident income tax.
Increase of the threshold for net means of existence (dependent children)
If certain conditions are met, those who have dependent children (children at charge) receive an additional tax-free allowance (on top of the basic lump-sum allowance).
One of the conditions for a child to be considered dependent for Belgian income tax purposes is that their own income (net means of subsistence) may not exceed a certain amount. Initially, for tax year 2026 (income year 2025) the below indexed thresholds were applicable:
However, the threshold for determining the annual net means of existence for a child to be considered as dependent is now raised to EUR 12.000 (indexed amount for tax year 2026) for all children, promoting equal treatment of all parents regardless of relationship status.
Via the law of 10 April 2025 allowing students to work up to 650 hours per calendar year (under a beneficial social security regime), the amount of the income from student work—which is not taken into account to determine the net means of existence—was already doubled to EUR 6.840 (indexed amount for income year 2025).
To avoid abuse, persons who receive a minimal subsistence income or an equivalent thereof will no longer be considered dependents for income tax purposes. Moreover, doctoral scholarships will no longer be excluded from the calculation of the net means of subsistence.
All these changes take effect as of tax year 2026 (income 2025).
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Philip Maertens
Partner
Nic Boydens
Partner
Bart Elias
Partner
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