Contrary to movable goods, Belgian real estate can never be gifted for free. Fortunately, the current gift tax has recently been reduced and simplified.
Donation of real estate must always be done through a notary. The notary will draw up a notarial deed, which must be registered no later than fifteen days after the notarial deed of donation. As a result, you are liable for gift tax (the so-called 'donation rights').
Normal rates
The applicable rates ('gift tax') depend on the relationship between the donor and the beneficiary on one hand, and the value of the real estate on the other hand.
The rates applicable in Flanders in direct line (= child, grandchild, ...) or between spouses/cohabitants are as follows:
Bracket from 0 to 150,000 EUR: 3%
Bracket from 150,000 EUR to 250,000 EUR: 9%
Bracket from 250,000 EUR to 450,000 EUR: 18%
Bracket > 450,000 EUR: 27%
The rates applicable for donations between other persons (e.g. nephew, aunt, ...) are as follows:
Bracket from 0 to 150,000 EUR: 10%
Bracket from 150,000 EUR to 250,000 EUR: 20%
Bracket from 250,000 EUR to 450,000 EUR: 30%
Bracket > 450,000 EUR: 40%
If the beneficiary decides to make energy-saving investments in the donated property, there is a possibility to receive an additional discount on the gift taxes. You can consult the exact rates on the website of the Flemish tax authorities.
Exemption of transfer of family businesses and companies
In the Flemish Region, there is an exemption from gift tax for the donation of family businesses and companies. The purpose of the scheme, which has been in effect since January 2012, is to encourage business owners to think about their succession during their lifetime.
There are various conditions that must be met, both before and after the donation. You must also fulfill certain formalities. Therefore, be sure to seek advice on this matter!
