Taxation
Published on 23 September 20265 min read
Inheritance tax in Belgium: how it works
The Immolytics editorial team
Belgian inheritance tax is not a single national tax. Flanders, Wallonia and Brussels-Capital each apply their own rates, allowances and paperwork. What an heir owes depends on where the deceased last lived and on who inherits. This article explains how the taxable share is built up, what the notary files, and what changes when the estate includes a house or flat.
A regional tax, not one national rate
In Belgium, inheritance tax is levied by the Regions. Each Region votes its own rates and exemptions, and in principle the rules of the Region where the deceased had their last domicile apply. An heir therefore does not compare "Belgian inheritance tax": there are three separate systems.
Concretely, Flanders, Wallonia and Brussels-Capital each have their own declaration, their own logic for allowances and their own exemptions, notably for family property, business assets and certain investments. The starting point is the same everywhere: identify the deceased, identify the heirs and their kinship, then list the assets. Kinship weighs heavily, because a spouse or legal cohabitant, children, brothers and sisters, and people with no blood link are not treated alike. The basic vocabulary is shared: the inheritance tax glossary lists the terms you will meet.
The picture gets harder when the deceased lived abroad or held assets outside Belgium. You then have to check which tax authority is competent and whether a treaty applies. In case of doubt, the notary settles the point with the regional tax office.
How the taxable share is worked out
The calculation follows three steps: establish the gross assets, deduct the liabilities, then apply to each share received the rate matching that heir's kinship. The estate is not taxed as one block; it is taxed heir by heir.
Gross assets bring together bank accounts, securities, insurance, furniture and, often, the family home. For the property, the market value on the date of death is what counts, which is why it is worth putting a defensible figure on the building before the declaration is filled in, for instance with an apartment valuation tool. Liabilities are deducted: current debts, taxes still owed, funeral costs and the outstanding mortgage balance. An heir who takes over the house usually also takes over the loan that finances it, which changes the real value of the share; the mortgage guide sets out those mechanics.
Then come the allowances and exemptions, which differ from one Region to the next, followed by a progressive scale in brackets. The same estate does not produce the same bill in each Region, or for each person who inherits.
The notary, the declaration and the payment
The notary draws up the certificate of inheritance, describes the estate and prepares the inheritance tax return, which the heirs file with the tax authority of their Region within the deadline that authority imposes. That deadline depends on the Region and on the circumstances of the death, so it is best confirmed without delay.
The notary's fees consist of regulated emoluments, disbursements and VAT. To get a sense of the amounts before signing, the page on notary fees in Belgium gives useful orders of magnitude. The tax itself is generally paid before the division of the estate becomes final, and registering a property assumes the tax position is settled. Some heirs sell a property purely to fund that tax, which is best prepared from the start of the file.
Inheriting property: valuation, EPC and charges
An inherited building is declared at its market value on the date of death, not at its cadastral value and not at the price paid at purchase. Undervaluing it exposes the heir to an adjustment; overvaluing it means paying more than necessary.
The property also arrives with obligations attached. In Wallonia, an EPC certificate is required for the sale and the rental of a dwelling, with no renovation deadline. In Brussels, dated performance targets apply per dwelling, with no link to a sale. In Flanders alone, a sale can trigger a renovation obligation. The EPC certificate in Belgium and the renovation obligation detail these rules region by region.
For a flat, the charges and works voted by the co-ownership also count, and they follow the property; how they are split is explained in the guide to building charges. If works are planned, EPC grants depend on the invoice and on regional criteria, and the budget is best prepared with the renovation calculator.
Then comes the real decision: keep, rent out or sell. A buy vs rent simulation helps compare the options, and if you reinvest elsewhere, the list of cheapest municipalities gives reference points.
Planning the transfer ahead
Planning ahead often lowers the bill: a gift organised during your lifetime, a clear will or an inheritance pact usually costs less than an inheritance simply endured. Recent gifts can, however, be brought back into the estate under the rules of the Region concerned, and the reserved share limits what a will can set aside.
With life insurance, the beneficiary clause plays a central role, but premiums judged excessive can be reclassified. Where an estate includes property abroad, the other country's tax rules are added on top: the tax guide for investing from Belgium sets out the reasoning to follow.
Frequently asked questions
Who pays inheritance tax?
Each heir and each legatee pays on the share they receive, according to their kinship with the deceased. The estate as a whole is not taxed as a single block.
Is inheritance tax the same in Flanders, Wallonia and Brussels?
No. Each Region sets its own rates, allowances and exemptions, and in principle the rules of the Region where the deceased had their last domicile apply.
How is a house valued in an estate?
It is entered at its market value on the date of death, estimated from comparable properties sold in the same municipality. A value that is too low exposes the heir to an adjustment by the tax authority.
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