BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
12. Cross-Border Succession Planning 12.1 Taxation of Cross-Border Estates and Transfers Double taxation considerations play a significant role in estate planning. For Belgian residents, inheritance tax applies to the worldwide estate, including foreign immovable and movable property. For non-residents, Belgian inheritance tax applies only to Belgian-situat- ed immovable property. Gift tax follows a more territo- rial approach. Gifts of immovable property situated in Belgium are subject to Belgian gift tax regardless of the donor’s tax residence. Gifts of movable property are subject to Belgian gift tax based on the donor’s Belgian tax residence, provided that the gift is regis- tered in Belgium. Belgium has only signed two double taxation agree- ments on inheritance tax: one with France and one with Sweden. In cases where no double tax treaty applies, Belgian inheritances tax provides a local tax credit system. However such tax credits are not foreseen for gift taxes, in which case double taxation might occur. In case the wealth planning involves the use of a trust, a foreign foundation or low-taxed foreign companies, the impact of the so-called Cayman tax needs to be taken into consideration; it provides some compliance obligations, look-through taxation and taxation at the occasion of distributions.
adopter (or from the adopter and his or her partner jointly), for one/six/three uninterrupted years, the care and support normally received by children from their parents; and • the children of the partner. 11.2 Conflicts and Divergent Laws In Belgium, family law falls within the competence of the federal legislator. There is no distinction, for fam- ily law purposes, between federal law and the laws of the regions or communities. As a result, conflicts comparable to those that may arise in federal systems with overlapping state and federal family law regimes do not occur in Belgium. In an international context, however, differences may arise where family relationships are recognised or structured differently under foreign legal systems. As a general principle, Belgium recognises personal and family statuses validly established abroad, provided that they comply with the applicable Belgian rules of private international law and do not contravene inter- national public policy ( ordre public international ). This approach applies in particular to marriage, registered partnerships, filiation and adoption. Where a family relationship has been validly created under the law designated by the Belgian conflict-of- laws rules, it will in principle be recognised in Belgium, even if the corresponding legal institution does not exist in identical form under Belgian domestic law. Recognition may nevertheless be refused where the effects of that relationship would be manifestly incom- patible with Belgian international public policy.
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