Inheritance tax and inheritance law in Belgium

INHERITANCE TAX

Inheritance tax is levied at progressive rates and varies according to the degree of kinship, region where the inheritance is opened and to the share inherited by each of the heirs. The tax is, in principle, computed on the fair market value of the property each beneficiary is entitled to receive from the estate.

For residents, the tax base is the gross value of the estate (i.e. assets in Belgium) less any debts incurred by the estate. For nonresidents, tax is chargeable on the gross value of the estate, without any deductions.

INHERITANCE - BRUSSELS REGION
If the deceased was resident in the Brussels region, the spouse, direct descendants and direct ascendants are entitled to a tax-free allowance of €15,000 each. For children below 21 years of age, the allowance is increased by €2,500 for each year below the age of 21. For other beneficiaries, inheritances not exceeding €1,250 are not taxable.

INHERITANCE - FLEMISH REGION
The inheritance is split into immovable and movable parts, which are then taxed at progressive rates. A maximum reduction of €500 is granted if the taxable share does not exceed €50,000.

INHERITANCE - WALLOON REGION
If the deceased was resident in the Walloon region, the spouse, direct descendants and direct ascendants are entitled to a tax-free allowance of €12,500 each. The allowance is increased to €25,000, if the inheritance does not exceed €125,000. For children below 21 years of age, the allowance is increased by €2,500 for each year below the age of 21. For other beneficiaries, inheritances not exceeding €620 are tax-exempt.

GIFT TAX
Donations of real estate are subject to gift tax at progressive rates. Different tax bands and tax rates apply, depending on the property value and the relationship between the donor and beneficiary.