🇧🇪 Gifting Assets in Belgium: A Smart Way to Transfer Wealth
Planning to pass on your wealth to the next generation? In Belgium, gifting assets during your lifetime can be significantly more tax-efficient than waiting until your death. Thanks to the low gift tax rates, especially in Flanders, you can transfer large amounts to your children at minimal cost—if done correctly.
Let’s explore how it works, with concrete examples and tables.
🔹 1. What Can You Gift?
| Type of Asset | Examples |
|---|---|
| Movable assets | Cash, savings, stocks, bonds, jewelry |
| Immovable assets | Real estate (house, apartment, land) |
🔹 2. Tax Rates on Gifts (Flanders – 2024)
| Relationship | Movable Assets | Immovable Assets |
|---|---|---|
| Children / Parents | 3% | 3% (with limit) |
| Others (e.g. friends) | Up to 7% or more | 10% or more |
Important: For movable assets, a gift via bank transfer (hand gift) is tax-free if you survive 3 years after the gift. For immovable assets, a notarial deed is mandatory, and you always pay gift tax immediately.
🔹 3. Real Example – Family with 2 Children
Let’s say you and your partner own:
- A house worth €600,000
- Investments worth €400,000
You wish to pass this to your 2 children.
📌 Step 1: Gifting Movable Assets (Investments)
| Method | Amount Gifted | Gift Tax Rate | Tax Owed | Notes |
|---|---|---|---|---|
| Hand gift (no notary) | €400,000 | 0% (if you live 3 yrs) | €0 | Risk if you die within 3 years (inheritance tax) |
| Notarial gift | €400,000 | 3% | €12,000 | Safe, immediately registered |
📌 Step 2: Gifting Real Estate (House)
In Flanders, you may gift €150,000 per child per parent every 3 years at the 3% rate.
| Gifter | Child 1 | Child 2 | Total Gifted |
|---|---|---|---|
| You | €150,000 | €150,000 | €300,000 |
| Your partner | €150,000 | €150,000 | €300,000 |
| Total | €600,000 |
Gift Tax on Property:
3% on €600,000 = €18,000 (paid immediately via the notarial deed)
🔹 4. Summary Table
| Asset Type | Total Value | Gift Method | Gift Tax | Notes |
|---|---|---|---|---|
| Investments | €400,000 | Hand gift or notary | €0 – €12,000 | 3-year survival rule applies |
| Real estate | €600,000 | Notarial deed | €18,000 | Limit: €150k/child/parent/3 years |
| Total | €1,000,000 | €18,000 – €30,000 | Considerably less than inheritance tax! |
🔹 5. Key Benefits
- ✅ Reduce or avoid high inheritance taxes (which can reach up to 27%)
- ✅ Legally structure your wealth transfer over time
- ✅ Control the transfer (e.g. gift with usufruct – you retain rights to live in the house or receive rent)
🔹 6. Final Tip
💡 Plan your gifts over time. The €150,000 immovable gift limit resets every 3 years. If you own more than one property or plan ahead, you can pass on much more over time at low tax rates.