Expatica uses technology such as cookies and scripts to personalize content and ads, provide social media features, and analyze our traffic. Gifts of Belgian real estate have to be registered (before a Belgian notary) and are subject to higher gift taxes. While inheritance tax won’t be levied in Belgium, the deceased may be subject to the inheritance tax rules of their country of origin. The relevant Belgian tax authorities for the region where the deceased passed away calculate how much you owe them based on the inheritance tax return you have to submit when you receive an inheritance. You can of course change your mind and withdraw your consent at any time, by returning to this site after clearing the cookies on your computer or device. If there are no heirs, the spouse inherits the whole estate. This differs in the sense that it only covers any real estate that the deceased owned in Belgium, and funeral costs can’t be deducted from the overall bill. An international assignee domiciled in Belgium can become liable to Belgian inheritance tax on worldwide assets even when he/she is deemed They may each make individual declarations or make one joint declaration. Belgium doesn’t generally grant any relief from double taxation with respect to inheritance tax, meaning that assets can be subject to double tax in some circumstances. This increases to five months for people who died elsewhere in Europe, or six months elsewhere in the world. and movable property (cash, furniture, jewellery, etc.) In Brussels and Flanders, real estate debts can be deducted if the deceased was a EU or EEA citizen, whereas in Wallonia the country of origin and residence is immaterial. Belgium operates a three-year rule for gifting movable and immovable property. Estate tax is different to inheritance tax because it is paid before the estate is divided up amongst heirs. Domicile in civil law is essentially the same as residence in income tax law and is the term used when considering liability to inheritance tax. For movable assets, it’s 3% for direct heirs or 7% for other beneficiaries. If the donor dies in the three (in the Flemish region soon four) years following the gift, inheritance taxes will be due unless Belgian gift taxes have been paid. 6.3 Inheritance and gift tax 6.4 Net wealth tax 6.5 Real property tax 6.6 Social security contributions ... Belgium Taxation and Investment 201 7 ... Once established, a foreign-owned company is treated in the same way as a Belgian-owned company. | Code des droits de successions - C.Succ] and Articles 2.7.1.0.3 to 2.7.1.0.9 of the Flemish Tax Code [Vlaamse Codex Fiscaliteit - VCF]). The Worldwide Estate and Inheritance Tax Guide 2020 (WEITG) is published by the EY Private Client Services network, which comprises professionals from EY member firms.The 2020 edition summarizes the gift, estate and inheritance tax systems and describes wealth transfer planning considerations in 42 jurisdictions and territories. Inheritance tax is a regional tax and thus varies from region to region. An overhaul of inheritance rules has allowed people planning their estates to be more flexible over setting up agreements within their families. Tax is chargeable on the gross value of the property in… Belgian inheritance and inheritance tax rules depend on where the person lives and what kind of property they own. If the deceased has one or more children, the spouse is entitled to earn dividends, interest, and rent from the estate. This means they’ll be subject to gift tax at the time but their heirs won’t be subject to inheritance tax. If you are an expat living in Belgium and want the inheritance laws of your country of nationality to apply rather than Belgian inheritance law, you need to express this clearly in a will or separate declaration. In many Irish estates it can be at least a year before the Grant of Probate is applied for and it can be another 3-6 months before it is issued by the Probate Office. Gift tax in Wallonia varies from 3.3% to 5.5% (depending on your relationship with the donor). The allowance is increased to €25,000, if the inheritance does not exceed €125,000. Inheritance tax applies on the total value of the estate of a person settled in Belgium, or any property owned in Belgium if they are not settled there. Inheritance. Having worked hard over the years you may find yourself in the fortunate position of owning a property in Belgium, and holding both capital reserves and a portfolio of investments.. After building up your estate and assets, it can be worrying to find that your beneficiaries may face a substantial Inheritance Tax bill after your death. the inheritance taxes that your heirs will have to pay on your estate your civil status : for example, who your last spouse was the property regime of your marriage or registered partnership: that is, how your property should be divided after the death of your spouse or partner Click below to consent to the use of this technology on our website – and don’t worry, we respect your privacy. The other half of the estate is passed on to a surviving spouse or partner for the remainder of their life. The body authorised to collect the tax depends on the region. It is calculated on the net value of the immovable property (house, land etc.) This is the total value of assets plus corrections (debts, gifts, life insurance policies) minus any liabilities (outstanding loans, maintenance payments, hospital bills, funeral costs, capital taxes paid abroad). Among the changes adopted: greater flexibility and freedom of transfer; the ability to set up family agreements; and greater security for donees. After a death, a tax known as succession duty is paid when the assets are transferred from a deceased person to his or her heirs. The reform of the law of inheritance in Belgium, adopted on 31 July 2017, will come into effect on 1 September 2018. Inheritance tax is the tax paid by heirs on an estate. This is called inheritance tax. The inheritance tax in Belgium varies according to the region in which the deceased resided. and movable property (cash, furniture, jewellery, etc.) Since 2018, the family home is not subject to tax when inherited by a direct-line heir, spouse, or cohabitant (applicable to all regions). Tax-free allowances of €15,000 apply to spouses and direct descendants/ascendants (with an extra €2,500 per year for children under 21 years of age). Belgium (such as a long-term savings tax reduction). Belgian inheritance law and succession rules, Read more in our guide to estate planning and wills in Belgium. New rules introduced in September 2018 mean that children of the deceased must share half of the estate, regardless of how many children there are. Inheritance Tax Planning. How much tax you’ll pay varies from region to region. These rates are set by the regions. The competent office is in principle that of the last residence of the deceased for tax purposes, and the statement of inheritance is issued free of charge. For example, for Brussels region, for a tax base of €250,000 - €500,000 the tax rate is 24%. Inheritances of foreigners temporarily employed in Belgium who are treated as non-residents are generally subject to inheritance tax only in respect of real estate situated in Belgium. Under their favourable gift tax regimes, all three regions have adopted gift tax exemptions. This means there are some restrictions on how the deceased’s estate is distributed, with a certain percentage automatically passed to heirs without the need for probate or a court order. If the person died in Belgium, you have four months to file the return. left by deceased persons after deducting their debts. NOTE: These settings will only apply to the browser and device you are currently using. Inheritance tax is paid by heirs or legatees on the net amount inherited by each recipient from the estate of any deceased person who is considered to be a resident of Belgium. 745bis and 915bis CC ). These laws will then apply as long as they don’t contravene local public policy (e.g., discrimination of heirs based on gender, discrimination of heirs based on being born out of wedlock). 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. Parents in Belgium can gift a property to their child but maintain the right to use it for the rest of their life. Belgian inheritance tax is paid on the net value of the estate. Which cookies and scripts are used and how they impact your visit is specified on the left. Inheritance tax is the tax paid by heirs on an estate. Inheritance tax is a tax calculated on the net value of the estate of an inhabitant of the kingdom, i.e. The Flemish Region has, however, approved a reform of inheritance tax, which enters into force on 1 September 2018. Belgium, droits de succession or erfbelasting (Inheritance tax). For individuals domiciled in Belgium, the rules apply to the entire estate (with the exception of real-estate property outside Belgium) €620 tax-free is granted for all other heirs. In the Flemish region, immovable and movable assets are taxed at progressive rates. For further information: Registration fees in Flanders: what you need to know and movable property (cash, furniture, jewellery, etc.) This means the executor would usually be liable to sort out and pay estate tax, if this is the legal structure in the country your inheritance originates from. This site uses functional cookies and external scripts to improve your experience. There is an exemption for inheritance tax purposes for diplomats from the EU and NATO residing in Belgium for work. All others can claim a tax-free threshold of €1,250. If the deceased was a non-resident, transfer duty will be levied rather than inheritance tax. If you’ve rejected an inheritance you still need to inform the registry office. This means that if you give something to an heir and then die within three years, they’ll then need to pay inheritance tax on the value of the gift. Rather than property being valued based on the increase between the date of the gift and the inheritance being granted, values are now based on what the property was worth the day it was gifted, indexed to inflation on death. Inheritance tax in Belgium. Expatica helps make your expat journey the experience you've always wanted. Inheritance tax in the event of death of the insured The death benefits to be paid to the beneficiary of a policy which insures the life of an individual resident in Belgium are considered part of the taxable estate. You must therefore also declare immovable property abroad. For the reader’s reference, the names and symbols of the foreign currencies that are mentioned in the guide are listed at the end of the publication. Varieties of inheritance and estate taxes. The amount paid as succession duty depends on the value of the estate and the degree of the relationship between the deceased and the heirs. The property is subject to inheritance tax. You may change your settings at any time. Have a cookie It is calculated on the net value of the immovable property (house, land etc.) This new law has not changed anything regarding inheritance tax, which is a regional matter. Belgian inheritance tax is paid to the region in which the deceased was a tax resident for the majority of the last five years of their life. While it’s possible to file this yourself, it can be complicated so you may wish to ask a notary for help. This site uses functional cookies and external scripts to improve your experience. Inheritance Law in Belgium. When a person dies in Belgium, all heirs must file an inheritance tax return (aangifte van nalatenschap/déclaration de succession) which gives an account of all details to do with the succession. However, the surviving spouse always receives at least the usufruct of one-half of the assets of the inheritance. 5. The “Inheritance and gift taxes at a glance” table on page 424 highlights inheritance and gift taxes in all 39 jurisdictions and territories. EU citizens can choose whether Belgian laws or those in their country of nationality apply to their estate upon their death. There is a clear interaction between inheritance taxes and gift taxes. When you inherit something from someone, you have to pay tax on the value of what you've inherited. Belgian inheritance law follows a system of forced heirship. The new rules also cover how gifts before death are valued as part of an inheritance. Under their favourable inheritance tax regimes, the Brussels-capital and the Flemish regions both reduce their inheritance tax rates to a flat rate of 3% or 7% and the Walloon region reduces its rate to 0%. The EU rules do not apply to the following matters linked to your inheritance: Inheritance tax in Belgium (erfbelasting in Dutch or les droits de succession in French) is levied on all assets other than real estate outside Belgium (if the deceased lived in Belgium), and on real estate inside Belgium (if the deceased was based abroad). The concept of resident for the purpose of inheritance tax may be different Inheritance law and inheritance tax in Belgium applies to the whole estate, including any real estate owned abroad. Inheritance tax in Belgium varies depending on where you live, and recent changes to succession rules could affect expats who work and own property in Belgium. The calculation of inheritance tax in Belgium depends on: Progressive tax brackets, according to the size of the inheritance; The degree of kinship between the deceased and the heir; If the death takes place in Belgium, you have 4 months from the date of death to file your declaration of inheritance. If you register the gift with a notary at the time, you’ll instead need to pay gift tax – but your heir will not be subject to inheritance tax on the gift. on the net value of all property belonging to the deceased person (furniture and buildings located in Belgium and abroad), after deducting debts (including inheritance taxes paid abroad), and funeral costs. It is possible, however, for foreign residents to have their estate handled according to the laws of their home country instead. All heirs to an estate must file an inheritance tax return (aangifte van nalatenschap/déclaration de succession), either on an individual or collective basis. Your choices will not impact your visit. rules, and estate tax treaty partners. A special form of inheritance tax arises on the death of a Belgian non-resident who leaves property in Belgium. Only inheritance tax paid on real estate abroad can be exempt from double taxation, while any other capital tax paid abroad can be offset as a liability against the net value of the estate. Under Belgian inheritance law, there are three options: Accepting under beneficium inventarii and rejection must be given in a declaration to the clerk of the court. You’ll need to make this declaration at the local registry office where the deceased lived (registratiekantoor/bureau de l’enregistrement). The return must be filed, and inheritance tax paid within 6 months of the date of death. The tax-free allowance for spouses and direct descendants/ascendants is set at €25,000 for inheritances less than €125,000, and €12,500 for inheritances more than €125,000 (with an extra €2,500 per year for children under 21 years of age). They should make the declaration at the relevant registry office (registratie… The property regime of your marriage/partnership (how your property should be divided after the death of your spouse/partner). Contact | Webmaster | Sitemap | © Federale Overheidsdienst Financiën, Tax assessment notice for the non-resident income tax (as regards the calculation of the tax), Change of address or family situation (as non-resident), Living and working in different EU Member States, Living and receiving pensions in different EU Member States, Reimbursement of the withholding tax on movable property, Brussels-Capital Region and Walloon Region. Residents in Flanders are given a tax-free allowance of €500 for inheritances of less than €50,000. Estate, Inheritance, and Gift Tax Levies in EU Member States and European OECD Countries, as of 2019; Country Estate/Inheritance/Gift Tax Tax Rate; Austria (AT) No: No tax: Belgium (BE) Yes: 1-80%: Bulgaria (BG) Yes: 0.4-6.6%: Cyprus (CY) No: No tax: Czech Republic (CZ) Yes* Income tax rates: Denmark (DK) Yes: 0-52%: Estonia (EE) No: No tax: Finland (FI) Yes: 0-33%: France (FR) … This half includes at least the usufruct of the real property that served as the common residence and of the household assets present therein, even if that value is higher than the value of half of the usufruct of the inheritance ( Art. Accept an inheritance, which means obligation to pay debts even if they exceed the value of the estate. Depending on the situation, you can deduct all or part of the inheritance tax you pay on the immovable property abroad from the tax to be paid in Belgium. The deceased person is a not a resident of Belgium Hello, if I understand correctly, the Inheritance law in Belgium, 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. Inheritance tax is the tax paid by heirs on an estate. Belgium (Last reviewed 03 February 2021) Inheritance tax rate varies depending on … Collected at the federal level but distributed to the regional level. It is also calculated on transfers that are treated in the same way as death (notional legacies under Articles 4 to 11 of the Inheritance Tax Code [Wetboek der successierechten - W.Succ. If no will has been left, Belgian intestate law determines that the estate is divided equally in the following order of priority: The rights of the surviving spouse in situations where there is no will depends on the familial situation: All beneficiaries to an estate, whether as heirs or through a will, can choose whether to accept or reject their inheritance. [1] [2] List [ edit ] Inheritance tax in Belgium (erfbelasting in Dutch or les droits de succession in French) is levied on all assets other than real estate outside Belgium (if the deceased lived in Belgium), and on real estate inside Belgium (if … In the Brussels region, the spouse and direct descendants have a tax-free allowance of 15,000 euros each. Belgian inheritance tax is due if the deceased was a resident of Belgium (ie, if they had their domicile or seat of wealth in Belgium). The inheritance tax is based upon the net worth of the estate and the rate depends upon the relationship of the beneficiary to the deceased. In the Brussels Capital Region and the Walloon Region, it is the FPS (Federal Public Service) for Finance. Inheritance tax or estate tax is the tax levied upon the wealth of a person at the time of his/her death before it is passed on to their heirs. In Brussels, gift tax on immovable assets varies from 3% (up to €150,000) to 27% (over €450,000) for direct heirs, or from 10% to 40% for others. Belgium only has double tax treaties regarding inheritance tax with France and Sweden. left by deceased persons after deducting their debts. It is calculated on the net value of the immovable property (house, land etc.) With the exception of such cases, you can also have the statement of inheritance compiled by the office of Legal Certainty (kantoor rechtszekerheid/bureau de Sécurité Juridique). Belgium does not levy gift tax when a Belgian tax resident gifts a real property that is situated outside Belgium. This guide on estate and inheritance taxes in Belgium includes advice on: Belgian inheritance law is residence-based, meaning that if Belgium is the country where you normally live and where your family and work is based, then its inheritance laws will usually apply upon your death, as well as Belgian inheritance tax. It is paid to the region in which the deceased was a tax resident for the majority of the last five years of their life. When there are no children but other legally recognised heirs, the spouse inherits the community property and is entitled to earn interest from any private property owned by the deceased. The heirs may make the declaration themselves but, as it is often complex, they can ask a specialist such as a notary to help. Belgian tax residents (refutable presumption). left by deceased persons after deducting their debts. Make the declaration at the time but their heirs won ’ t worry, we respect your.! 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