I need legal advice
What is inheritance tax?
Inheritance tax is the tax that is due in Flanders when someone inherits something following a death. It is levied by the Flemish government and is payable by each heir individually, based on what that person actually receives.
Important: for inheritances in the direct line and between siblings, inheritance tax is calculated on the net estate. This is the value of all movable and immovable assets after deduction of any debts and costs, such as outstanding loans and funeral expenses. Only then is it determined what amount each heir receives and which rates apply.
For acquisitions by other persons, the rate is applied to the total of the net acquisitions of the successors: each successor pays a share of the globally calculated inheritance duties in proportion to the net acquisition received.
What is the difference between inheritance tax and succession duties?
On 1 January 2015, the Flemish government introduced the term ‘inheritance tax’. Since then, the terms inheritance tax and succession duties have been used interchangeably.
Inheritance tax in Flanders is the collective term for succession duties payable on the estate of residents of Flanders and the transfer duty on death, payable on the estate of non-residents of Belgium in respect of immovable property located in Flanders.
I need legal advice
What are the current inheritance tax rates in Flanders?
In principle, inheritance tax rates are progressive: the more you inherit, the higher the rate. In addition, the rates differ depending on the degree of kinship.
Rates for direct heirs and between partners
This applies to:
· (grand)children* and (grand)parents
· spouses
· factual and legal cohabitation, provided there was at least one year of uninterrupted cohabitation with the deceased, during which time a common household was shared.
* This article only addresses kinship in the direct line. The Flemish Tax Code also provides for an equivalence with the direct line for:
· fully adopted children
· ordinary adoption, under certain conditions
· stepparents
· stepchildren
· care parents and care children, under certain conditions
** Heirs in the direct line are taxed separately on the movable and immovable portions.
Rates between siblings
For brothers and sisters, the highest rates apply, making estate planning particularly important in this context. This is even more relevant as brothers and sisters may inherit by operation of law and may then be confronted with inheritance tax of up to 55% from €75,000 upwards. Other persons, by contrast, can never inherit automatically, meaning that appropriate estate planning is always required.
* For acquisitions by siblings, no distinction is made between movable and immovable assets. The rate is applied to the net acquisition of each brother or sister individually.
For unrelated individuals, the highest rates apply. It should also be noted that unrelated individuals almost never inherit automatically, i.e. by operation of statutory succession law. Carefully considered estate planning is therefore always required.
I need legal advice
Are there exemptions from inheritance tax?
Yes. Flanders provides for a number of exemptions and reductions that can significantly reduce the taxable amount. Important: only the partner allowance and tax credits are granted automatically. Other exemptions and reductions must be applied for and can only be used optimally with proper planning prior to death.
1) Exemption for the family home for the surviving partner
The family home can be inherited completely free of inheritance tax by:
· the spouse
· the legally cohabiting partner
· the factually cohabiting partner, provided the cohabitation lasted at least three years and there is no kinship in the direct line between the cohabitants (e.g. parent and child)
Please note: the spouse or legally or factually cohabiting partner does not automatically inherit the property. Estate planning is therefore essential.
No inheritance tax is payable on the family home, regardless of its value.
2) Increased partner allowance on movable assets
As from 1 January 2026, the partner allowance has been increased.
· exemption on movable assets:
o previously: €50,000
o now: €75,000
This means that the surviving partner pays no inheritance tax on the first €75,000 of movable assets (such as savings and investments).
Single reduction: new scheme as from 2026
The friends inheritance scheme has been abolished and replaced by a new and broader scheme: the single reduction.
What does the single reduction entail?
· for childless singles
· up to €100,000 can be bequeathed to one or more beneficiaries
· preferential rates:
o first €50,000 at 3%
o next €50,000 at 9%
The beneficiaries don’t need to be relatives. You may designate the beneficiaries in your will.
This measure is particularly interesting for those wishing to leave assets to friends, a partner’s children or other loved ones. If you have stepchildren, you are not considered a single, childless person and therefore the reduction doesn’t apply.
Please note the single reduction only applies if the deceased has clearly designated one or more beneficiaries in a will.
I need legal advice
How are succession duties on an inheritance paid?
After a death, a declaration of inheritance must be submitted to the Flemish Tax Authority, digitally via ERFonline. Please note that although the digital tool is provided free of charge, it is advisable to seek assistance when completing the declaration of inheritance. The complexity of inheritance law and inheritance tax should not be underestimated.
Statutory periods
After processing, you will receive an assessment notice. The final payment deadline for inheritance tax is 2 months. In most cases, this means payment must be made within 6 months of death. This short payment period means that careful and proactive estate planning is often of crucial importance.
Inheritance tax on family businesses and companies
For the transfer of a family business or family company, reduced rates of 3% or 7% apply in Flanders, depending on the degree of kinship and provided strict conditions are met. This scheme is intended to safeguard the continuity of family businesses and companies.
We would also like to note that family businesses and companies can be transferred during the owner’s lifetime under an even more favourable tax regime. To encourage business owners to consider succession, a gift tax exemption exists for the transfer of such businesses and companies. The conditions for benefiting from this favourable regime, both for inheritance tax and gift tax, have been substantially amended as from 1 January 2026. We are happy to review with you whether your business or company meets the conditions of the favourable family regime.
Why estate planning is crucial
Without planning inheritance, tax can take a heavy toll. With carefully considered estate planning, it is possible to:
· reduce or spread inheritance tax
· make optimal use of exemptions
· avoid unpleasant surprises for surviving relatives
Consider, for example:
· a will
· gifts
· an adapted asset structure
Do you need advice on your inheritance tax or estate planning? Do not hesitate to contact us. We are happy to help.
