Inheriting a property triggers inheritance tax (erfbelasting in Flanders, successierechten in Brussels and Wallonia), calculated by the Region and not by the federal State. The amount depends on three things: where the deceased lived, what relationship linked you to them, and above all how much the property is worth. This last point is the one on which the heirs have the most to lose — or to secure.
A regional matter
It is the Region of the deceased's last tax residence in Belgium that determines the applicable regime: Wallonia, the Brussels Region or Flanders. Each has its brackets, its rates and its favourable regimes. The same estate is therefore not taxed in the same way depending on where the deceased lived — not on where the property is located.
Progressive rates, according to the family relationship
The duties are progressive: they increase by value bracket. They also depend heavily on the family relationship:
- in the direct line (children, parents) and between spouses or cohabitants, the rates are the gentlest;
- between brothers and sisters, they are higher;
- between unrelated parties, they reach the highest levels.
Two heirs receiving the same property can therefore pay very different duties depending on their relationship with the deceased.
The value retained: the decisive point
The property is taxed on its market value on the date of death — its real market value, not a symbolic amount. The heirs declare this value themselves, and that is where the essential is at stake:
- under-valuing the property to pay less exposes you to a reassessment with a fine and interest if the administration, or a quick resale at a higher price, reveals the gap;
- over-valuing makes you pay needless duties.
Hence the value of a defensible valuation, based on recent comparable sales: it protects the declaration in both directions. Some Regions in fact allow the value to be formally set so as to secure the declaration.
The favourable regimes on the family home
To cushion the blow for the surviving spouse or cohabitant, several Regions provide a favourable treatment of the family home — an exemption or reduction on the home that served as the couple's main residence. The conditions (length of occupation, status of the survivor) vary from one Region to another: it is a point to check early, because it strongly changes the bill.
Anticipate rather than endure
Inheritance tax is something to prepare for: the way the property is held, prior gifts and the favourable regimes have a major impact. The common prerequisite to any planning remains knowing what the property is worth — without that figure, no simulation of the duties is reliable.