Following the Belgian general elections last May and the formation of new regional governments, Belgium has experienced a downward trend in registration and inheritance taxes, which are largely the responsibility of the regions.
The following article outlines the measures introduced by each region.
Walloon Region
On 12 September, the new Walloon government presented details of the new tax measures planned for registration tax and inheritance tax.
As of 1 January 2025, the rate of registration tax applicable to properties intended to become one's sole residence will be significantly reduced. It will fall from 12.5% (the current standard rate) to 3%.
In addition, the Walloon government is planning a significant reduction in inheritance and gift taxes. The reduced rates would apply from 1 January 2028. These tables (in French and Dutch) communicated by the government show the new inheritance and gift tax rates on immovable property.
Flemish Region
On Monday 30 September, the new Flemish government presented its political agreement to the parliament.
The new government wants to promote a proportional and fair tax policy while maintaining a sound budgetary framework. Specifically, the government wants to adopt tax cuts for small and medium-sized wealth, offset by savings and new taxes for the "better off".
From 1 January 2025, the rate of registration tax on property intended to be used as one's sole residence will fall from 3% (the current standard rate) to 2%.
This will be offset by an increase in the rate of registration duty applicable to estate agents, with the current rate of 4% set to rise to 6% over the course of the new parliament.
Regarding inheritance tax, a general reduction is planned for small and medium-sized estates. The new government has not yet provided more precise figures, but the current gift tax will still be more attractive than the future inheritance tax. These tables show the current rates of inheritance tax and gift tax on real estate.
At the same time as this tax relief, Flanders wants to make gifts of securities subject to the inheritance tax if they were made tax-free during the five years before the donor's death. This would mean an increase from three to five years, as in Wallonia.
Brussels Region
No decision has yet been taken, pending the formation of a majority coalition.
