Belgium’s Ministry of Finance has issued guidance on the gradual phase-out of the spousal income transfer regime from assessment year 2027, including frozen indexation, reduced maximum amounts and new rules for joint taxation and scholarships.
Belgium’s Ministry of Finance has published Circular No. 2026/C/79, dated 26 August 2026, guiding the phase-out of the spousal income transfer regime introduced by the law of 15 July 2026.
Circular 2026/C/79 provides detailed guidance on the gradual phase-out and modification of the Belgian spousal income transfer regime (the marriage quotient). This regime historically allowed married or legally cohabiting partners to attribute up to 30% of their professional income (capped at a basic amount of EUR 6,700) to a partner with no or very low professional income to reduce their collective tax burden. These modifications aim to strengthen tax neutrality across cohabitation models and pivot away from single-earner tax incentives.
The circular details the following major changes:
Freezing of indexation
Starting in assessment year 2027, the indexation of the marriage quotient’s maximum amounts is permanently frozen. A fixed indexation coefficient is introduced into Article 178 of the Income Tax Code (WIB 92) to maintain static maximum values moving forward.
Two phased reduction schemes
From assessment year 2027, the application of the marriage quotient depends on the spouses’ age as of January 1 of the assessment year:
- Gradual phasing-out scheme (both spouses reached age 66/67): Where both spouses have reached age 66 (rising to 67 from 2031), the 30% rate will remain, but the maximum indexed amount will gradually decline from EUR 12,790 in 2027 to EUR 0 by 2046, when the regime will be fully abolished for this group.
- Gradual reduction scheme (one or both spouses under age 66/67): For other eligible couples, where at least one spouse is below the age threshold, the maximum indexed amount will decrease from EUR 11,780 in 2027 to EUR 6,730 from 2030 onwards. The 30% rate will remain unchanged throughout.
Joint tax return exclusions & “maximum amount” replacement
In certain scenarios, Belgian tax law excludes spouses from joint assessment—for instance, when one resident spouse has treaty-exempt professional income without a progression reservation, or when a non-resident spouse has exempt foreign or domestic professional income.
- Previously, joint assessment was avoided if this exempt income exceeded the “maximum amount of the marriage quotient”.
- Because assessment year 2027 introduces two separate maximum amounts based on age, the law replaces this reference. The threshold is now linked to the basic amount of the tax-free allowance to prevent application conflicts.
Special provisions for scholarships
From assessment year 2027, joint taxation will no longer apply where a spouse receives a fully tax-exempt study grant or scholarship that provides full or partial social security rights. The change primarily targets doctoral scholarship holders, whose exempt income could otherwise prevent their spouses from benefiting from the marriage quotient or transferred tax-free allowances.
