If there are no heirs, the spouse inherits the whole estate. There is a clear interaction between inheritance taxes and gift taxes. left by deceased persons after deducting their debts. EU citizens can choose whether Belgian laws or those in their country of nationality apply to their estate upon their death. This site uses functional cookies and external scripts to improve your experience. Belgian inheritance tax is paid on the net value of the estate. For movable assets, it’s 3% for direct heirs or 7% for other beneficiaries. 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. They should make the declaration at the relevant registry office (registratie… This is called inheritance tax. Inheritance tax is the tax paid by heirs on an estate. 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. 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. 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 body authorised to collect the tax depends on the region. The other half of the estate is passed on to a surviving spouse or partner for the remainder of their life. 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. Tax is chargeable on the gross value of the property in… The inheritance tax in Belgium varies according to the region in which the deceased resided. This new law has not changed anything regarding inheritance tax, which is a regional matter. 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 Belgium (Last reviewed 03 February 2021) Inheritance tax rate varies depending on … 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. Belgian inheritance law and succession rules, Read more in our guide to estate planning and wills in Belgium. Varieties of inheritance and estate taxes. 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. 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). 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 concept of resident for the purpose of inheritance tax may be different 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. When you inherit something from someone, you have to pay tax on the value of what you've inherited. 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. How much tax you’ll pay varies from region to region. Gift tax in Wallonia varies from 3.3% to 5.5% (depending on your relationship with the donor). They may each make individual declarations or make one joint declaration. In the Brussels region, the spouse and direct descendants have a tax-free allowance of 15,000 euros each. Inheritance tax is the tax paid by heirs on an estate. 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) … You must therefore also declare immovable property abroad. Inheritance. 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). The new rules also cover how gifts before death are valued as part of an inheritance. This means they’ll be subject to gift tax at the time but their heirs won’t be subject to inheritance tax. 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). 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. NOTE: These settings will only apply to the browser and device you are currently using. 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. If the deceased has one or more children, the spouse is entitled to earn dividends, interest, and rent from the estate. If you’ve rejected an inheritance you still need to inform the registry office. 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. Belgian tax residents (refutable presumption). The Flemish Region has, however, approved a reform of inheritance tax, which enters into force on 1 September 2018. left by deceased persons after deducting their debts. 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. 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. It is possible, however, for foreign residents to have their estate handled according to the laws of their home country instead. Inheritance tax is a regional tax and thus varies from region to region. In the Brussels Capital Region and the Walloon Region, it is the FPS (Federal Public Service) for Finance. 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. Residents in Flanders are given a tax-free allowance of €500 for inheritances of less than €50,000. Among the changes adopted: greater flexibility and freedom of transfer; the ability to set up family agreements; and greater security for donees. 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). However, the surviving spouse always receives at least the usufruct of one-half of the assets of the inheritance. 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. You may change your settings at any time. It is calculated on the net value of the immovable property (house, land etc.) Inheritance tax in Belgium. Belgian inheritance and inheritance tax rules depend on where the person lives and what kind of property they own. Gifts of Belgian real estate have to be registered (before a Belgian notary) and are subject to higher gift taxes. These rates are set by the regions. A special form of inheritance tax arises on the death of a Belgian non-resident who leaves property in Belgium. 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. This increases to five months for people who died elsewhere in Europe, or six months elsewhere in the world. In the Flemish region, immovable and movable assets are taxed at progressive rates. 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. Inheritance Law in Belgium. If the deceased was a non-resident, transfer duty will be levied rather than inheritance tax. While it’s possible to file this yourself, it can be complicated so you may wish to ask a notary for help. Expatica uses technology such as cookies and scripts to personalize content and ads, provide social media features, and analyze our traffic. 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. Belgium only has double tax treaties regarding inheritance tax with France and Sweden. Have a cookie 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. 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. 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. 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. Your choices will not impact your visit. Expatica helps make your expat journey the experience you've always wanted. 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. The reform of the law of inheritance in Belgium, adopted on 31 July 2017, will come into effect on 1 September 2018. 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. 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). 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. 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. rules, and estate tax treaty partners. The property is subject to inheritance tax. 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. Belgium (such as a long-term savings tax reduction). 5. The property regime of your marriage/partnership (how your property should be divided after the death of your spouse/partner). All others can claim a tax-free threshold of €1,250. The “Inheritance and gift taxes at a glance” table on page 424 highlights inheritance and gift taxes in all 39 jurisdictions and territories. All heirs to an estate must file an inheritance tax return (aangifte van nalatenschap/déclaration de succession), either on an individual or collective basis. You’ll need to make this declaration at the local registry office where the deceased lived (registratiekantoor/bureau de l’enregistrement). and movable property (cash, furniture, jewellery, etc.) 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. While inheritance tax won’t be levied in Belgium, the deceased may be subject to the inheritance tax rules of their country of origin. Which cookies and scripts are used and how they impact your visit is specified on the left. 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. 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). 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 heirs may make the declaration themselves but, as it is often complex, they can ask a specialist such as a notary to help. 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