BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
1. Tax 1.1 Tax Regimes
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 person who was a resident of Belgium at the time of death. Please note that the power to levy inheritance tax lies with the Region (the Flemish Region, the Brussels- Capital Region or the Walloon 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 (see 9.3 Cohabitation and Unmarried Couples ) 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 registration and gift tax if the gift is completed before a Belgian or foreign notary. Informal and indirect gifts (bank trans - fers, remission of debts, etc) are not automatically subject to registration and gift tax, but inheritance tax is due if the donor passes away as a Belgian resident within five years of the (non-registered) gift. 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 the Walloon Region, the rates are 3.3% in direct line and between partners (eg, spouses), and 5.5% for other private individuals. In all three Regions, gifts of Belgian real estate are subject to progressive tax rates ranging from 3% to 27% in direct line and between partners (eg, spouses).
Individual residents in Belgium are subject to income tax on their worldwide income. Non-residents will only be subject to taxation on Belgian source income (unless tax treaty provisions provide otherwise). There is no general wealth tax in Belgium; the only wealth-type taxation 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. Since 1 January 2026, capital gains on financial assets (shares, bonds, life insurance policy, crypto, etc) real - ised by a Belgian individual resident in the context of the normal management of that individual’s private wealth are taxed at a rate of 10%. As this new regime targets only capital gains created as of 1 January 2026, the acquisition value for the computation of this tax is fixed as of 31 December 2025 (or later if acquired later). 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 mean the Belgian tax system is still 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
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