BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
the surviving children who have not reached the age of 21 years) or a partner. • Other rebates and reductions include the following: (a) 0% (exemption) for bequests made to the Regions, the Communities, the Brussels met - ropolitan area, a member state of the European Economic Area or assimilated legal persons governed by public law, and public institutions of the aforementioned entities, amongst others; (b) 7% for bequests to the municipalities of the Brussels-Capital Region and their publicly owned entities, the co-operative society with limited liability of the Fonds du Logement de la Région de Bruxelles-Capitale , intermunicipali - ties of the Brussels-Capital Region, founda - tions of public interest, non-profit organisa - tions and other non-profit legal entities having received federal approval (on the date of death or within the following year); (c) 25% for bequests to (national unions of) health insurance funds, professional associations, (in - ternational) non-profit organisations and private foundations, amongst others; (d) a reduction for a legatee who is the child of the deceased and is younger than 21; (e) a reduction for “friends” (“inheritance between friends”); and (f) a 50% reduction in the event of another trans - fer due to another death within one year follow- ing the first death. Walloon Region • An exemption for the first EUR12,500 is applica - ble to the inheritance of an heir who is a direct descendant (increased for the surviving children who have not reached the age of 21 years) and legally entitled to inherit, or a spouse or statutory cohabitant. • Other rebates and reductions include the following: (a) 0% (exemption) for bequests made to the Regions, the Communities, the Federal State, a member state of the European Economic Area or one of its institutions and any entity created by such institutions, amongst others; (b) 5.5% for bequests to the provinces, municipal - ities, publicly owned entities of the provinces and municipalities, inter-municipal organisa - tions and autonomous municipal undertakings
located in Belgium and to analogous entities created in accordance with and subject to the legislation of another member state of the Eu - ropean Economic Area, amongst others; (c) 7% for bequests made to (international) non- profit organisations, mutual undertakings or national associations of mutual undertakings and private foundations and foundations of public interest; (d) a reduction for a legatee who is the child of the deceased and is younger than 21 (subject to certain conditions); (e) a 50% reduction in the event of another trans - fer due to a further death within one year of the original death; (f) an exemption for immovable property located within a Natura 2000 site or a site for which an application for Natura 2000 status has been filed and which is subject to the primary pro - tection regime; (g) an exemption for the value of standing trees growing in woodland and forests, and for the value of shares in forestry companies; and (h) an exemption for unbuilt immovable proper - ties located in the Walloon Region on which a long-term agricultural lease or a quarry lease is established, under certain conditions. • Restitution of the inheritance tax levied on the immovable property located in the Walloon Region and totally or partially intended for hous - ing, amounting to 25% of the expenses incurred in order to save energy in relation to that property, up to a maximum amount of EUR2,500, provided that the heir establishes their main residence in the immovable property within the year following the filing of the inheritance tax return and maintains that main residence there for three consecutive years, with the energy-saving works being carried out within three years following that same date. 1.3 Income Tax Planning There are various opportunities for income tax plan - ning in Belgium. No taxation on capital gains on shares is generally applicable. However, a new 10% capital gains tax would apply to capital gains realised from the trans - fer against consideration of financial assets. The new
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