Private Wealth 2025

BELGIUM Trends and Developments Contributed by: An Weyn and Aurore Sultus, Arteo

Private Wealth in Belgium This article first gives a quick overview of the planned tax reform in Belgium in the field of income tax, and then explains the regional differences between the applicable inheritance and gift tax rates. It will explain the Belgian look-through taxation regime targeting the founders of foreign trusts and foreign legal entities, before giving an overview of the applicable rules of the tax on securities accounts. Finally, there will be a brief discussion of some trust-related tax aspects. Planned tax reform in the field of income tax The Belgian federal government that was formed in January 2025 has announced the introduction of a tax reform. Shareholders’ taxation upon transfer of seat and other cross-border reorganisations It is expected that certain cross-border reorganisa - tions will trigger taxation at the level of the sharehold - ers from 1 July 2025. Based on the current tax rul - ing policy and case law, the emigration of a Belgian tax resident company abroad should not give rise to the distribution of a taxable deemed dividend distri - bution in the hands of the shareholder if operated in legal continuity. In future, however, shareholders will be deemed to receive a liquidation dividend when a company transfers its seat of management abroad. The new rules target not only cross-border migra - tions but also cross-border mergers and demergers, whereby the transferred assets concerned are not maintained in a permanent establishment in Belgium. The anticipated new exit tax treatment impacting shareholders has been heavily criticised for being in violation of the EU freedoms and the provisions of tax treaties, so the new provisions are expected to be Currently, there is no specific tax regime for carried interest, generating uncertainty with respect to the tax qualification of such income. A specific individual income tax regime will be introduced in order to pro - vide legal certainty on the nature of the income of carried interest structures. challenged before the Belgian courts. Private equity – carried interest income

In future, carried interest will be taxable as movable income at a rate of 25%. As it will qualify as movable income, carried interest will not be subject to social security contributions. For this specific regime to apply, carried interest should be attributed or paid by a so-called “carried interest vehicle” – ie, any Belgian or foreign undertak - ing for collective investment that does not qualify as a UCITS according to European Directive 2009/65/EG or similar regulation for non-EU vehicles. Taxation of capital gains on financial assets realised by Belgian tax resident individuals Currently, capital gains realised in the context of the normal management of private wealth are not treated as taxable income when realised by Belgian tax resi - dent individuals. The government has announced that a tax of 10% will be introduced on future capital gains realised on financial assets built up as from the moment of intro - duction of the tax. Historic capital gains should thus remain exempt. Individuals moving to Belgium are expected to benefit from a step-up in basis. Inheritance and gift tax provisions Inheritance and gift tax is a regional tax, with tax rates, tax assets and tax-free amounts differing according to the region concerned. In Belgium, there are three regions: the Flemish Region, the Walloon Region and the Brussels Metropolitan Region. Inheritance tax In the Flemish Region, the rates applicable between spouses, cohabitants and in direct line start at 3% and rise to 27%. In the Brussels Metropolitan Region and the Walloon Region, the current rates vary between 3% and 30% in direct line. However, in the Wal - loon Region the regional government has decided to reduce the inheritance tax rates by 50% as of 1 Janu - ary 2028, which will result in a maximum rate of 15% in direct line.

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