New Measures for Registration and Inheritance Taxes – Introduction
Following the Belgian general elections in May and the formation of new regional governments, significant changes have been introduced regarding registration and inheritance taxes.
These taxes are largely regulated by the individual regions, with new policies aiming to adjust rates and provide relief in certain areas.
Below is a breakdown of the measures introduced by the Walloon and Flemish regions, as well as the current status in Brussels.
Walloon Region
On 12 September 2024, the Walloon government presented its planned reforms to registration and inheritance taxes, which will come into effect in 2025 and 2028 respectively.
- Registration Tax Reduction: Beginning on 1 January 2025, the rate of registration tax for properties intended to be a primary residence will drop from 12.5% to 3%. This is a significant decrease that will provide much-needed relief to homebuyers in the region.
- Inheritance and Gift Tax Reduction: In a further attempt to alleviate tax burdens, the Walloon government plans to implement lower rates for inheritance and gift taxes starting on 1 January 2028. The specific rates for immovable property have been communicated in official government tables (in French and Dutch), illustrating the expected reductions.
This shift marks an important step towards a more tax-friendly environment in the Walloon Region, especially for individuals seeking to purchase homes or pass on wealth through inheritance or gifts.
Flemish Region
On 30 September 2024, the Flemish government also announced a series of tax changes. Their overarching goal is to implement a proportional and fair tax policy while maintaining fiscal responsibility.
- Lower Registration Tax for Residences: From 1 January 2025, the registration tax for properties intended to be the owner’s sole residence will be reduced from 3% to 2%, making homeownership even more accessible.
- Higher Registration Duty for Estate Agents: To balance the budget, the government plans to increase the registration duty for estate agents, raising it from the current 4% to 6% during the next parliamentary term.
- Inheritance Tax Reductions: While specific figures are yet to be confirmed, the government has announced plans to reduce inheritance taxes for small and medium-sized estates. However, the current gift tax remains more favourable than the future inheritance tax, as outlined in existing tables for real estate taxation.
- Changes to Gift Rules for Securities: Another key measure involves extending the period for which gifts of securities will be subject to inheritance tax, increasing the period from three to five years. This aligns with changes already planned in Wallonia, making the region’s tax rules more uniform.
Brussels Region
Unlike Wallonia and Flanders, the Brussels Region has yet to announce specific tax reforms, as the formation of a majority coalition is still pending. We expect updates once the new government is fully established, and tax policies for registration and inheritance taxes are likely to follow.
New Measures for Registration and Inheritance Taxes – Conclusion
Belgium’s regional governments are taking significant steps to reform registration and inheritance tax policies, particularly in Wallonia and Flanders.
These changes aim to ease the tax burden on homeowners and those passing on wealth through gifts or inheritance.
The upcoming reforms are designed to ensure a more proportional and fair tax environment, especially for smaller estates and first-time buyers.
Final Thoughts
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