Belgium Inheritance and Gift Tax Guide

Regional Differences — Overview

• Flanders (Vlaanderen): The most modernised regime. Rates for spouses/children: 3–30% (progressive). Flat 3% rate for all other inheritances in direct line (brothers, sisters, others — the rate is 3% for all, regardless of amount, since 2021 reform). 100% exemption for the surviving spouse on the first €50,000 of the common home (woning / logement) plus a general spouse exemption. Business succession relief (BOR) provided the business continues for 5 years.
• Wallonia (Wallonie): More traditional regime. Rates for spouses/children: 3–30%. Rates for siblings: 20–65%. Rates for unrelated: 30–80%. The highest bracket (€1M+) is taxed at 30% for direct line, 65% for siblings, and 80% for non-relatives. Business succession relief available with strict conditions.
• Brussels-Capital: Similar to Wallonia but with some differences. Rates for spouses/children: 3–30%. Rates for siblings: 20–65%. Rates for unrelated: 30–80%. The Brussels region increased the spouse exemption to 100% up to €500,000 (the first €500K to the surviving spouse is tax-free since 2024). Business succession relief is available.

Inheritance Tax — Direct Line (Spouses and Children)

• Flanders: (a) Spouse/cohabitant: 3% on the first €50,000, 9% on €50K–€250K, 27% on €250K+, capped effectively by the 100% exemption on the common home. (b) Children: same brackets (3/9/27%). (c) The effective rate after exemptions: most estates for surviving spouses and children pay 3–9% on the net estate. (d) The "woning" (common home) is 100% exempt for the surviving spouse (no cap).
• Wallonia: (a) Spouse/cohabitant: 3% (€0–€12,500), 4% (€12,500–€25,000), 5% (€25,000–€50,000), 7% (€50,000–€100,000), 10% (€100,000–€175,000), 14% (€175,000–€250,000), 18% (€250,000–€500,000), 24% (€500,000+). (b) Children: same brackets. (c) The surviving spouse exemption is limited to €500,000 (2024 reform).
• Brussels: (a) Spouse/cohabitant: 3% (€0–€50,000), 6% (€50,000–€100,000), 12% (€100,000–€175,000), 18% (€175,000–€250,000), 24% (€250,000–€500,000), 30% (€500,000+). (b) Children: same brackets. (c) The surviving spouse exemption is 100% on the first €500,000 of the total inheritance (since 2024).

Inheritance Tax — Other Relations

• Siblings: Flanders: flat 3% (since 2021 — the uniform 3% rate for all non-spouse, non-child inheritances). Wallonia: 20% (€0–€35,000), 25% (€35K–€75K), 30% (€75K–€175K), 50% (€175K–€500K), 65% (€500K+). Brussels: 20% (€0–€12,500), 25% (€12.5K–€25K), 30% (€25K–€75K), 40% (€75K–€175K), 55% (€175K–€500K), 65% (€500K+).
• Unrelated persons: Flanders: flat 3%. Wallonia: 30% (€0–€35,000), 35% (€35K–€75K), 50% (€75K–€175K), 65% (€175K–€500K), 80% (€500K+). Brussels: 30% (€0–€12,500), 35% (€12.5K–€25K), 50% (€25K–€75K), 60% (€75K–€175K), 70% (€175K–€500K), 80% (€500K+).

Gift Tax (Schenkingsrechten / Droits de Donation)

• Notarial deeds (Notariële akte / Acte notarié): Registered gifts made by notarial deed are subject to gift tax at the time of the gift. Rates: 3% for direct-line gifts (parents to children, spouse to spouse) in all three regions — this is a flat rate with no progressive brackets. For siblings: 5–10% (varies by region). For unrelated: 7–10%. The notarial route provides legal certainty and is required for gifts of real estate.
• Bank gifts (Handgift / Don manuel / Gifte bancaire): A written deed of gift (handgift / don manuel) for movable assets (cash, shares, bank accounts, securities) is not subject to immediate gift tax if it is not registered with the tax authorities. However, if the donor dies within 3 years of the gift (5 years in Flanders for certain large gifts), the gift is retroactively included in the inheritance tax calculation (the "3-year rule" / "5-year rule" depending on region). The gift is treated as if it never left the estate. To avoid this, the donor can voluntarily register the gift (paying 3% gift tax) — after which the 3/5-year rule no longer applies.
• Flanders special regime (since 2021): Unregistered handgifts are no longer subject to the 3-year rule in Flanders if the gift is documented by a written deed (dated and signed by both parties) and the donor survives the gift by at least 5 days (the "5-day rule" — confirmed by the Constitutional Court). This makes gift tax planning much more flexible in Flanders than in Wallonia or Brussels.

Business Succession Relief (BOR)

• BOR (Bedrijfsopvolgingsregeling / Régime de succession d'entreprise): Business assets transferred by inheritance or gift can qualify for a reduced rate of 3% (effectively exempt above certain thresholds in Flanders). Conditions: (a) the business (BV/NV/eenmanszaak) must be a going concern at the time of transfer, (b) the successor must continue the business for at least 5 years, (c) the successor must be actively involved in the business (or appoint a manager), (d) the business must meet certain size criteria (varies by region).
• Flanders: The first €1,000,000 of business value is exempt; the excess above €1M is taxed at 3%. The successor must file an annual declaration for 5 years confirming the business continues.
• Wallonia: The first €500,000 of business value is exempt; the excess above €500K is taxed at 3%. The 5-year continuation requirement applies.
• Brussels: Similar to Wallonia: the first €500,000 exempt; excess at 3%. The business must be continued for 5 years.

For related reading, see our Personal Tax Guide →, Corporate Tax Guide →, and DGA and Directors' Tax Guide →.