BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
(such as private foundations) are subject to a wealth tax. Until 31 December 2023, this was at a flat-rate tax of 0.17%, but this has been converted into a progres - sive-rate tax ranging from 0.15% to 0.45% (in excess of EUR500,000). However, several appeals for annul - ment against this tax are pending with the Belgian Constitutional Court. 1.2 Exemptions Gifts of foreign real property are tax-exempt and no surviving period of three or five years applies. A favourable tax regime applies in all three Regions to the transfer (by gift or death) of a qualifying fam - ily business/(shares of a family) company. For fam - ily businesses, a reduced inheritance tax rate of 3% (direct line and between partners) or 7% (between other persons) may be claimed (subject to conditions) in the Flemish and Brussels-Capital Regions, and an exemption applies in the Walloon Region. Gifts of those businesses benefit from a 0% rate/exemption. Partners inheriting the family home benefit from an inheritance tax exemption. Inheritance Tax Regarding inheritance tax, Belgium also has the fol - lowing exemptions/reductions. Flemish Region • An exemption for the first EUR50,000 or EUR75,000 (movable property) applies to the fol - lowing: (a) partners (excluding “partners” who are descendants in the direct line) benefit from an exemption for the first band corresponding to EUR50,000 of the net acquisition of movable property; and (b) in the direct line of descent, and insofar as the other parent of the child concerned has already died previously, an entitled child under the age of 21 benefits from an exemption from inher - itance tax on the first EUR75,000 of the net acquisition of movable property. • Exemption for dwelling of surviving parent: inso - far as the other parent of the child concerned has already died, the inheritance tax rate for immovable property in the direct line is not applied to the net
acquisition by the entitled child under the age of 21 in the dwelling which, at the time of the death of the surviving parent, was the dwelling where the testator was domiciled at the time of death. • Other rebates and reductions apply to the follow - ing: (a) heirs who are direct descendants or a partner, as long as the net value of the total movable and immovable property received does not exceed EUR50,000; (b) siblings/others, as long as the acquired net as - sets do not exceed EUR75,000; (c) bequests made to the Regions, the Communi - ties, the provinces and municipalities of the Flanders Region, approved Flemish housing corporations, (international) non-profit or - ganisations, foundations of public interest and analogous European legal entities, amongst others, benefit from a 0% rate; (d) bequests made to professional associations and private foundations, and analogous Euro - pean legal entities benefit from an 8.5% rate; (e) legatees with a disability are eligible for a rebate; (f) a legatee who is the child of the deceased and younger than 21 is eligible for a reduction; (g) in the event of another transfer due to a further death within one year of the original death, a 50% reduction applies; (h) “friends” (“inheritance between friends”) are entitled to a reduction; (i) unbuilt immovable properties for which a nature management plan has been approved are eli - gible for an exemption of 50%, 75% or 100%; and (j) if the assets of a national resident’s estate include foreign assets that give rise to the levy - ing of inheritance tax abroad, the inheritance tax due, to the extent of the taxable value of these assets, is reduced by the amount of tax levied abroad, converted into euros, on the date of payment of such tax. Brussels-Capital Region • An exemption for the first EUR15,000 is applica - ble to the inheritance of an heir who is a direct descendant legally entitled to inherit (increased for
64
CHAMBERS.COM
Powered by FlippingBook