BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
1. Tax 1.1 Tax Regimes
person who was a resident of Belgium at the time of death. Please note that inheritance tax is levied by the Regions (the Flemish Region, the Brussels-Capital Region or the Walloon Region). The applicable region - al inheritance tax depends on the Region where the deceased had their residence for the longest period of time, in the five years prior to their death. There are differences between the Regions with regard to tax rates, reduced tax rates, exemptions, etc. The applicable inheritance tax rate depends on the relationship of the heirs/legatees with the deceased. In the Flemish Region, the maximum inheritance tax rate in the direct line and between partners (eg, spouses) is 27% (in excess of EUR250,000). In the Brussels- Capital and Walloon Regions, the maximum tax rate is 30% (in excess of EUR500,000). Gift Tax Gifts of movable property are subject to gift tax if the gift is completed before a Belgian or foreign notary. Informal and indirect gifts (bank transfers, remission of debts, etc) are not subject to gift tax, but inherit - ance tax is due if the donor passes away as a Belgian resident within three years of the gift. Wallonia has increased this period from three years to five years for gifts made as of 1 January 2022; Flanders did the same as of 1 January 2025. Gift tax rates depend on the applicable regional leg - islation (following the same connecting factors for inheritance tax). In the Flemish and Brussels-Capital Regions, movables are taxed at a reduced flat regis - tration rate of 3% for gifts in direct line and between partners (eg, spouses). Gifts to other private individu - als are taxed at 7%. In Wallonia, the rates are 3.3% in direct line and between partners (eg, spouses), and 5.5% for other private individuals. Gifts of Belgian real estate are subject to progressive tax rates ranging from 3% to 27% in direct line and between partners (eg, spouses), in all three Regions. Wealth Tax There is currently no wealth tax applicable to private individuals in Belgium, except for the yearly tax of 0.15% on securities accounts. Only some charities
Individual residents in Belgium are subject to income tax on their worldwide income. Non-residents will only be subject of taxation on Belgian source income (unless tax treaty provisions provide otherwise). There is no general wealth tax in Belgium; the only wealth-type taxation known in Belgium is the tax on security accounts. Interests and dividends are taxed at a flat rate of 30%. If structured with a Belgian company (which is often used because of the favourable Belgian holding regime), the dividend taxation can be lowered to 15% if certain conditions are met. In most cases, capital gains on shares realised by a Belgian individual resident are tax exempt, as are withdrawals from a life insurance policy, under certain conditions if the contract provides for a fixed income. The new government envisages taxing those capital gains (created after 2026 at a rate of 10%). Combined with double tax treaties ratified by Belgium and the possibility to obtain advanced rulings on tax matters regarding both federal and regional taxes, this may make the Belgian tax system attractive for wealthy individuals, although careful and timely tax planning is of the utmost importance. As in many other jurisdictions, Belgium levies gift and inheritance taxes, but these will only apply if the donor/deceased is/was a Belgian resident or if the transfer concerns Belgian real estate. Gifts of movable assets benefit from very attractive tax rates, and spe - cial tax regimes apply to the transfer of family-owned businesses. Inheritance Tax Inheritance tax is due from the heirs/legatees on the net amount inherited by each of them (in direct line or between siblings in the Flemish Region and the Brussels-Capital Region, and in all circumstances in the Walloon Region) or on the net amount of the total assets acquired by all the beneficiaries (between any other person, in the Flemish Region and the Brus - sels-Capital Region) from the estate of any deceased
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