Global Property Guide

Financial Information for the Residential Property Buyer


Inheritance tax and law

Last Updated: May 02, 2012

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.


BRUSSELS REGION: INHERITANCE TAX OF LINEAL RELATIVES AND SPOUSES

TAX BASE(€) TAX RATE
Up to €50,000 3%
€50,000 - €100,000 8%
€100,000 - €175,000 9%
€175,000 - €250,000 18%
€250,000 - €500,000 24%
Over €500,000 30%

BRUSSELS REGION: INHERITANCE TAX OF BROTHERS AND SISTERS

TAX BASE(€) TAX RATE
Up to €12,500 20%
€12,500 - €25,000 25%
€25,000 - €50,000 30%
€50,000 - €100,000 40%
€100,000 - €175,000 55%
€175,000 - €250,000 60%
Over €250,000 65%

BRUSSELS REGION: INHERITANCE TAX OF UNCLES, AUNTS, NEPHEWS AND NIECES

TAX BASE(€) TAX RATE
Up to €50,000 35%
€50,000 - €100,000 50%
€100,000 - €175,000 60%
Over €175,000 70%

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 TAX: Inheritance Tax of Lineal Relatives and Spouses

TAX BASE(€) TAX RATE
Up to €50,000 3%
€50,000 - €250,000 9%
Over €250,000 27%

INHERITANCE TAX: Inheritance Tax of Brothers and Sisters

TAX BASE(€) TAX RATE
Up to €75,000 30%
€75,000 - €125,000 55%
Over €125,000 65%

INHERITANCE TAX: Inheritance Tax of All Other Persons

TAX BASE(€) TAX RATE
Up to €75,000 45%
€75,000 - €125,000   55%
Over €125,000 65%

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.

Wallon Region: Inheritance Tax of Lineal Relatives and Spouses

TAX BASE (€) TAX RATE
Up to €12,500 3%
€12,500 - €25,000 4%
€25,000 - €50,000 5%
€50,000 - €100,000 7%
€100,000 - €150,000 10%
€150,000 - €200,000 14%
€200,000 - €250,000 18%
€250,000 - €500,000 24%
Over €500,000 30%

Wallon Region: Inheritance Tax of Uncles, Aunts, Nephews and Nieces

TAX BASE (€) TAX RATE
Up to €12,500 20%
€12,500 - €25,000 25%
€25,000 - €75,000 35%
€75,000 - €175,000 50%
Over €175,000 65%

Wallon Region: Inheritance Tax of Brothers and Sisters

TAX BASE (€) TAX RATE
Up to €12,500 25%
€12,500 - €25,000 30%
€25,000 - €75,000 40%
€75,000 - €175,000 55%
Over €175,000 70%

Wallon Region: Inheritance Tax of All Other Persons

TAX BASE (€) TAX RATE
Up to €12,500 30%
€12,500 - €25,000 35%
€25,000 - €75,000 60%
€75,000 - €175,000 80%
Over €175,000 90%

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.

Gift Tax of Lineal Relatives and Spouses

TAX BASE (€) TAX RATE
Up to €12,500 3%
€12,500 - €25,000 4%
€25,000 - €50,000 5%
€50,000 - €100,000 7%
€100,000 - €150,000 10%
€150,000 - €200,000 14%
€200,000 - €250,000 18%
€250,000 - €500,000 24%
Over €500,000 30%

Gift Tax of Brothers and Sisters

TAX BASE (€) TAX RATE
Up to €12,500 20%
€12,500 - €25,000 25%
€25,000 - €75,000 35%
€75,000 - €175,000 50%
Over €175,000 65%

Gift Tax of Uncles, Aunts, Nephews and Nieces

TAX BASE (€) TAX RATE
Up to €12,500 25%
€12,500 - €25,000 30%
€25,000 - €75,000 40%
€75,000 - €175,000 55%
Over €175,000 70%

Wallon Region: Inheritance Tax of All Other Persons

TAX BASE (€) TAX RATE
Up to €12,500 30%
€12,500 - €25,000 35%
€25,000 - €75,000 60%
€75,000 - €175,000 80%
Over €175,000 90%

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