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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.
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.
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.
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.
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.
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.
If you have any queries about this article on New Measures for Registration and Inheritance Taxes, or tax matters in Belgium more generally, then please get in touch.
Alternatively, if you are a tax adviser in Belgium and would be interested in sharing your knowledge and becoming a tax native, then there is more information on membership here.
The cost of retirement is increasingly becoming a concern, with rising food and energy prices contributing to the growing expenses. In fact, the amount needed for a minimum living standard in retirement has surged by nearly £2,000 in the past year.
As you diligently contribute to your personal or workplace pension plan, it’s essential to have a clear understanding of the funds required to support your post-work life. Fortunately, the recently updated Retirement Living Standards, developed by the Pensions and Lifetime Savings Association (PLSA), offer valuable insights into the annual income necessary for a comfortable retirement.
By utilising these standards, combined with our comprehensive tools and resources, you can effectively plan for the future you desire.
For single pensioners, the minimum required to survive has increased by 18% to £12,800 per year in 2022. Retired couples face an even greater rise of 19%, now needing a minimum of £19,900 annually, representing a £3,200 increase, according to a study conducted at Loughborough University and funded by the PLSA.
Don’t let the cost of retirement catch you off guard. Take proactive steps today to assess your financial needs and plan for a secure future. Leverage the Retirement Living Standards and our resources to make informed decisions and confidently navigate your retirement journey.
As retirement approaches, envisioning your post-work plans becomes crucial. Will you embark on exciting vacations or consider home renovations? Perhaps a new car is on the horizon. To effectively plan for your future, it’s essential to ask yourself these important questions.
By understanding your anticipated expenses during retirement, you can determine the necessary savings required to fulfil your aspirations. Don’t overlook the significance of financial preparedness in ensuring a comfortable retirement.
Take the time to assess your financial goals and evaluate the potential costs associated with your desired lifestyle. This proactive approach will empower you to make informed decisions and establish a robust savings plan.
Prepare for a fulfilling retirement by acknowledging your financial needs and setting realistic goals. Begin saving now to secure the future you envision.
The Pensions and Lifetime Savings Association (PLSA) has introduced three retirement living standards, categorised as minimum, moderate, and comfortable. These standards, developed in collaboration with Loughborough University, offer valuable insights into the financial requirements across different levels of lifestyle.
Each standard incorporates the cost of various goods and services, forming “baskets” that track price changes over time, including home maintenance, food and drink, transportation, holidays and leisure, clothing, and support for others. These standards provide a comprehensive view of the annual income needed for both individuals and couples.
By familiarising yourself with retirement living standards, you can gain a clearer understanding of the potential costs associated with different lifestyles during retirement. Use this knowledge to plan effectively and work towards achieving your desired level of financial comfort.
Ensure your retirement aligns with your aspirations by utilising the PLSA’s retirement living standards as a valuable resource in your financial planning journey.
Achieving a retirement income of £50,000 per year is relatively uncommon among pensioners. According to Loughborough University researchers, approximately 72% of the total population are projected to meet at least the minimum standard of living in retirement. Around one-fifth of the population is on track for a moderate income level, while 8% can expect a comfortable retirement. However, it’s important to note that these figures were calculated before last year’s significant inflation surge.
Ensuring financial security during retirement is a priority for many individuals. While reaching the £50,000 bracket may be challenging, it’s crucial to plan diligently to meet at least the minimum standard of living. By staying proactive and making informed decisions, you can increase your chances of attaining the desired level of financial stability in your post-work years.
If the prospect of relying on a monthly income of £1,000 or less in retirement is unsettling, it’s time to take action and save more before you stop working. But how much should you save?
We consulted researchers from Loughborough University and the PLSA to determine the additional savings required for individuals and couples to reach the minimum, moderate, and comfortable retirement brackets if they retire at age 67, even with the full new state pension. The projected amounts ranged from £0 to £530,000.
Encouragingly, the table highlights a £0 figure: If both partners receive the full £10,600 state pension, their combined income surpasses the minimum requirement of £19,900 for a comfortable retirement.
However, the challenging reality is that a single person aiming for a comfortable retirement must save a significant £500,000 by the age of 67, all while managing mortgage or rent payments and coping with the ever-rising cost of living.
Take control of your retirement future by calculating your savings goals. By developing a comprehensive savings plan, you can work towards achieving the financial security necessary for a comfortable retirement.
Source: Loughborough University and the Pensions and Lifetime Savings Association. (London figures may vary)
Source: Loughborough University and the PLSA
Plan and save accordingly to achieve the desired living standard in retirement. Consider these benchmarks as you work towards securing a financially stable future.
For individuals who feel unprepared to fully retire or simply prefer to stay partially active in the workforce, semi-retirement can offer distinct advantages. In this scenario, you may require a lower income compared to complete retirement since you’ll continue to receive earnings from your employer. With semi-retirement, you have the option to supplement your income by accessing pension funds or utilising other savings before tapping into your retirement plan.
By strategically balancing work and leisure, you can enjoy financial stability while gradually transitioning into retirement. Evaluate your financial situation, including available savings and potential pension options, to determine the most suitable approach for semi-retirement. This flexible path allows you to continue saving for the future while enjoying the benefits of reduced working hours and increased leisure time.
Are you ready to plan for a comfortable retirement in the UK? Don’t leave your financial future to chance. Take control of your retirement savings with these steps:
Remember, the key to a comfortable retirement lies in proactive planning and taking action today. Start building your retirement nest egg and pave the way for a financially secure future with the help from Tax Natives.
Monaco’s fiscal system is based on the principle of a total absence of direct taxation. There are two exceptions to this principal;
Monaco has signed no other bilateral fiscal agreements with other countries.
Monaco residents (except French nationals) are not required to pay taxes on income, betterment or capital gains. For French nationals, two categories exist:
The following rates of inheritance tax apply to assets located in Monaco:
There is no direct tax on companies. Besides the tax on profits mentioned in the previous cases above, companies are not required to pay directly for taxes.
Registration duties are collected from those registering real estate transfers or changes of ownership.
For official civil and judicial acts, fiscal stamps are required. Furthermore, all documents which could be used as evidence in court must be stamped to be valid. Stamp costs vary depending on the document’s format or value involved.
If you have any general queries about this article, please do not hesitate to get in touch.