Alimony Payments: navigating the new regulatory landscape

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KEY TAKE AWAYS
  • Implementation of gradual reduction deductibility over a 3-year period:
    • Before income year 2025: 80%
    • Income year 2025: 70%
    • Income year 2026: 60%
    • Income year 2027: 50% 
  • Similar phasing out of taxable amount of the alimony payments on behalf of the recipient.
  • What about non-residents? Deduction of the alimony payments will only be accepted if the beneficiary resides in the European Economic Area or in Switzerland. If no deduction can be applied, the recipient will not incur any taxation of the alimony payment.
The law on various regulations of 18 December 2025 introduces significant modifications to the tax deduction for alimony payments in Belgium. A progressive reduction of the tax deduction will be implemented progressively over a period of three years and the scope of the deduction will be limited. 

Alimony payments are classified as a deductible expense in Belgium for the payer, provided certain conditions fulfilled. First, the alimony payments must be made to a person who is not part of the payer's household. Second, the payments must be made on a regular basis (proof must be provided) and in accordance with a court order, a legal agreement, or on the basis of a duty-to-care provision included in the civil law code. Finally, the payments must be made to cover the needs of the recipient. If those conditions are met, 80% of the payment amount is currently deductible from the payer’s taxable income. 

If the recipient of the alimony payments is a Belgian resident, the payments are subject to personal income tax in the hands of the recipient, who must declare the alimony payments received as taxable income on their tax return. Currently 80% percent of the amount received will be added to the taxable basis. 

Starting with the 2025 income year, the 80% threshold will be reduced over a three-year period, successively decreasing to 70% in 2025, 60% in 2026, and finally 50% in 2027.  

The taxable amount of the alimony payments on behalf of the recipient will be phased out similarly. 

This reduction in the deduction/imposition threshold will also apply to alimony payment agreements established before the enactment of this law, which is therefore effective immediately.

In addition to this modification, it is now specified that the deduction of the alimony payments will only be accepted if the beneficiary resides in the European Economic Area (EEA) or in Switzerland. Consequently it will no longer be possible to deduct alimony payments made to a tax resident living in a country outside of the EEA or Switzerland.  

If no deduction can be applied, the recipient will not incur any taxation on the alimony payment.  

It is important to note that alimony payments made to a tax resident of country of the EEA and/or Switzerland might still be taxable in Belgium for 70% in 2025, 60% in 2026 and 50% as of 2027. All will depend on the provisions outlined in the double tax treaty (DTT) between Belgium and recipient’s country of residence.   

Some of those treaties specify that alimony payments made by a Belgian resident to a beneficiary in the other country will be taxable only in that other country. If that is the case, the alimony payments remain deductible in the hands of the payer, but no Belgian taxes will be due by the recipient. Additional conditions (such as the availability of a residence certificate for the beneficiary or proof of effective taxation in the other country) may apply for the exemption from Belgian taxes to be granted. 

If an alimony payment made to a tax resident of an EEA country or Switzerland is taxable in Belgium (according to the provisions of the DTT), the payer will be required to apply a withholding tax of 26.75% on the payment. This withholding tax is considered final and cannot be reclaimed by the recipient. 

This restriction shall enter into force on the last day of the month in which the law is published in the Belgian Official Gazette, and shall apply to taxable periods ending after that date.

Need more info or concrete advice on this?

If so, do not hesitate to contact Charlotte Lemahieu, Françoise Verreux or Nicolas Stockmans.