Individual residents in Belgium are subject to income tax on their worldwide income. Non-residents will only be subject to taxation on Belgian source income (unless tax treaty provisions provide otherwise).

There is no general wealth tax in Belgium; the only wealth-type taxation in Belgium is the tax on security accounts.

Interests and dividends are taxed at a flat rate of 30%. If structured with a Belgian company (which is often used because of the favourable Belgian holding regime), the dividend taxation can be lowered to 15% if certain conditions are met.

Since 1 January 2026, capital gains on financial assets (shares, bonds, life insurance policy, crypto, etc) realised by a Belgian individual resident in the context of the normal management of that individual’s private wealth are taxed at a rate of 10%. As this new regime targets only capital gains created as of 1 January 2026, the acquisition value for the computation of this tax is fixed as of 31 December 2025 (or later if acquired later).

Combined with double tax treaties ratified by Belgium and the possibility to obtain advanced rulings on tax matters regarding both federal and regional taxes, this may mean the Belgian tax system is still attractive for wealthy individuals, although careful and timely tax planning is of the utmost importance.

As in many other jurisdictions, Belgium levies gift and inheritance taxes, but these will only apply if the donor/deceased is/was a Belgian resident or if the transfer concerns Belgian real estate. Gifts of movable assets benefit from very attractive tax rates, and special tax regimes apply to the transfer of family-owned businesses.

Inheritance Tax

Inheritance tax is due from the heirs/legatees on the net amount inherited by each of them (in direct line or between siblings in the Flemish Region and the Brussels-Capital Region, and in all circumstances in the Walloon Region) or on the net amount of the total assets acquired by all the beneficiaries (between any other person, in the Flemish Region and the Brussels-Capital Region) from the estate of any deceased person who was a resident of Belgium at the time of death.

Please note that the power to levy inheritance tax lies with the Region (the Flemish Region, the Brussels-Capital Region or the Walloon Region) where the deceased had their residence for the longest period of time, in the five years prior to their death. There are differences between the Regions with regard to tax rates, reduced tax rates, exemptions, etc.

The applicable inheritance tax rate depends on the relationship of the heirs/legatees with the deceased. In the Flemish Region, the maximum inheritance tax rate in the direct line and between partners (see 9.3 Cohabitation and Unmarried Couples) is 27% (in excess of EUR250,000); in the Brussels-Capital and Walloon Regions, the maximum tax rate is 30% (in excess of EUR500,000).

Gift Tax

Gifts of movable property are subject to registration and gift tax if the gift is completed before a Belgian or foreign notary. Informal and indirect gifts (bank transfers, remission of debts, etc) are not automatically subject to registration and gift tax, but inheritance tax is due if the donor passes away as a Belgian resident within five years of the (non-registered) gift.

Gift tax rates depend on the applicable regional legislation (following the same connecting factors for inheritance tax). In the Flemish and Brussels-Capital Regions, movables are taxed at a reduced flat registration rate of 3% for gifts in direct line and between partners (eg, spouses). Gifts to other private individuals are taxed at 7%. In the Walloon Region, the rates are 3.3% in direct line and between partners (eg, spouses), and 5.5% for other private individuals. In all three Regions, gifts of Belgian real estate are subject to progressive tax rates ranging from 3% to 27% in direct line and between partners (eg, spouses).

Wealth Tax

There is currently no wealth tax applicable to private individuals in Belgium, except for the yearly tax of 0.30% on securities accounts (the rate was increased as of 1 June 2026). Only some charities (such as private foundations) are subject to a wealth tax. Until 31 December 2023, this was at a flat-rate tax of 0.17%, but this has been converted into a progressive-rate tax ranging from 0.15% to 0.45% (in excess of EUR500,000). However, several appeals for annulment against this tax are pending with the Belgian Constitutional Court.

Gifts of foreign real property are tax-exempt, and no surviving period of five years applies.

In all three Regions, a favourable tax regime applies to the transfer (by gift or death) of a qualifying family business or shares of a family company. For family businesses, a reduced inheritance tax rate of 3% (direct line and between partners) or 7% (between other persons) may be claimed (subject to conditions) in the Flemish and Brussels-Capital Regions, and an exemption applies in the Walloon Region. Gifts of those businesses benefit from a 0% rate/exemption.

Partners inheriting the family home benefit from an inheritance tax exemption.

Inheritance Tax

Regarding inheritance tax, Belgium also has the following exemptions/reductions.

Flemish Region

• An exemption for the first EUR50,000 or EUR75,000 (movable property) applies as follows:
1. partners (excluding “partners” who are descendants in the direct line) benefit from an exemption for the first band corresponding to EUR50,000 of the net acquisition of movable property; and
2. in the direct line of descent, and if the other parent of the child concerned has already died previously, an entitled child under the age of 21 benefits from an exemption from inheritance tax on the first EUR75,000 of the net acquisition of movable property.
• Exemption for dwelling of surviving parent: if the other parent of the child concerned has already died, the inheritance tax rate for immovable property in the direct line is not applied to the net acquisition by the entitled child under the age of 21 in the dwelling which, at the time of the death of the surviving parent, was the dwelling where the testator was domiciled at the time of death.
• Other rebates and reductions apply to the following:
1. heirs who are direct descendants or a partner, as long as the net value of the total movable and immovable property received does not exceed EUR50,000;
2. siblings/others, as long as the acquired net assets do not exceed EUR75,000;
3. bequests made to the Regions, the Communities, the provinces and municipalities of the Flemish Region, approved Flemish housing corporations, (international) non-profit organisations, foundations of public interest and analogous European legal entities, amongst others, benefit from a 0% rate;
4. bequests made to professional associations and private foundations, and analogous European legal entities benefit from an 8.5% rate;
5. legatees with a disability are eligible for a rebate;
6. a legatee who is the child of the deceased and younger than 21 is eligible for a reduction;
7. in the event of another transfer due to a further death within one year of the original death, a 50% reduction applies;
8. “friends” (“inheritance between friends”) are entitled to a reduction;
9. unbuilt immovable properties for which a nature management plan has been approved are eligible for an exemption of 50%, 75% or 100%; and
10. if the assets of a national resident’s estate include foreign assets that give rise to the levying of inheritance tax abroad, the inheritance tax due, to the extent of the taxable value of these assets, is reduced by the amount of tax levied abroad, converted into euros, on the date of payment of such tax.

Brussels-Capital Region

• An exemption for the first EUR15,000 is applicable to the inheritance of an heir who is a direct descendant legally entitled to inherit (increased for the surviving children who have not reached the age of 21 years) or a partner.
• Other rebates and reductions include the following:
1. 0% (exemption) for bequests made to the Regions, the Communities, the Brussels metropolitan area, a member state of the European Economic Area or assimilated legal persons governed by public law, and public institutions of the aforementioned entities, amongst others;
2. 7% for bequests to the municipalities of the Brussels-Capital Region and their publicly owned entities, the co-operative society with limited liability of the Fonds du Logement de la Région de Bruxelles-Capitale, inter-municipalities of the Brussels-Capital Region, foundations of public interest, non-profit organisations and other non-profit legal entities having received federal approval (on the date of death or within the following year);
3. 25% for bequests to (national unions of) health insurance funds, professional associations, (international) non-profit organisations and private foundations, amongst others;
4. a reduction for a legatee who is the child of the deceased and is younger than 21;
5. a reduction for “friends” (“inheritance between friends”); and
6. a 50% reduction in the event of another transfer due to another death within one year following the first death.

Walloon Region

• An exemption for the first EUR12,500 is applicable to the inheritance of an heir who is a direct descendant (increased for the surviving children who have not reached the age of 21 years) and legally entitled to inherit, or a spouse or statutory cohabitant.
• Other rebates and reductions include the following:
1. 0% (exemption) for bequests made to the Regions, the Communities, the Federal State, a member state of the European Economic Area or one of its institutions and any entity created by such institutions, amongst others;
2. 5.5% for bequests to the provinces, municipalities, publicly owned entities of the provinces and municipalities, inter-municipal organisations and autonomous municipal undertakings located in Belgium and to analogous entities created in accordance with and subject to the legislation of another member state of the European Economic Area, amongst others;
3. 7% for bequests made to (international) non-profit organisations, mutual undertakings or national associations of mutual undertakings and private foundations and foundations of public interest;
4. a reduction for a legatee who is the child of the deceased and is younger than 21 (subject to certain conditions);
5. a 50% reduction in the event of another transfer due to a further death within one year of the original death;
6. an exemption for immovable property located within a Natura 2000 site or a site for which an application for Natura 2000 status has been filed and which is subject to the primary protection regime;
7. an exemption for the value of standing trees growing in woodland and forests, and for the value of shares in forestry companies; and
8. an exemption for unbuilt immovable properties located in the Walloon Region on which a long-term agricultural lease or a quarry lease is established, under certain conditions.
• Restitution of the inheritance tax levied on the immovable property located in the Walloon Region and totally or partially intended for housing, amounting to 25% of the expenses incurred in order to save energy in relation to that property, up to a maximum amount of EUR2,500, provided that the heir establishes their main residence in the immovable property within the year following the filing of the inheritance tax return and maintains that main residence there for three consecutive years, with the energy-saving works being carried out within three years following that same date.

There are various opportunities for income tax planning in Belgium.

A general taxation on capital gains at a rate of 10% applies to capital gains realised from the transfer against consideration of financial assets. The new regime (see 1.1 Tax Regimes) applies to capital gains realised as of 1 January 2026 and only concerns the increase in value of the assets after that date; historically accrued capital gains would not be targeted by this new capital gains tax.

The new regime applies to capital gains realised in the normal management of a taxpayer’s private wealth. By contrast, gains realised outside the scope of normal private asset management may be taxed as miscellaneous income, at 33%, plus local surcharges, while gains arising from professional activities are taxed at the progressive personal income tax rates. Accordingly, tax planning often focuses on structuring investments and transactions so that they remain consistent with the concept of normal private wealth management. Relevant factors include the investment horizon, financing methods (particularly the use of leverage), trading frequency, the degree of organisation and professionalism, etc.

The anti-abuse tax rules introduce limitations, under which the tax authorities may disregard legal acts where the taxpayer frustrates the objectives of the tax legislation without valid non-tax reasons.

Since the introduction of the new capital gains tax regime for financial assets from 1 January 2026, Belgium has also introduced an exit tax for private individuals. If qualifying financial assets are disposed of within two years following emigration, Belgium may levy an exit tax at the rate of 10%. The taxable gain is determined by reference to the fair market value of the assets at the date the taxpayer ceases to be a Belgian tax resident.

A specific property tax is assessed on cadastral income (ie, a deemed rental value attributed to the property by the tax authorities).

Immovable incomes are also taxed at progressive rates, which generally range between 25% and 50%. The immovable incomes correspond to the “indexed cadastral income” if the property is rented out to people who do not use it for business purposes. In that case, a non-resident taxpayer is only required to file a tax return if their property income exceeds EUR2,500.

Capital gains on Belgian real estate are taxable, with rates depending on the type of property. Capital gains realised on buildings within five years of acquisition are, in principle, taxed at 16.5%. Capital gains realised on Belgian land are taxable at a rate of 33% in the first five years, and at 16.5% between the fifth and eighth years. After this holding period of five/eight years, the realised capital gains are tax exempt.

Belgium has had a stable tax system for many years, but there have been more significant tax reforms in recent years. Most of the time, the same topics of discussion come up again when elections are held and a new government is formed. Sometimes, it takes several governments before a reform is finally adopted; reforms are therefore often unpredictable.

All legislation concerning the exchange of information, the ultimate beneficial owner register, DAC 6 and compliance measures is in force and applied in Belgium. These measures have led to an increase in requests for information from the tax authorities, but this does not have a direct impact on existing planning techniques in Belgium.

Family profiles are starting to diversify, as both small and large families become increasingly aware of the importance of planning. There is a desire to pass on assets earlier than in the past. Moreover, planning is sometimes more complex in the case of reconstituted families.

Because of the favourable tax rates applicable on gifts (especially in relation to movable assets and family businesses), the transfer of wealth is generally done while living, rather than upon death. For that reason, a wide range of structures are used in Belgium to transfer wealth transfer, in order to maintain a certain degree of control and to benefit from the transferred assets at the level of the donor. Gifts with the retaining of usufruct are used very often in Belgium.

The vast majority of families now have at least one member living abroad. New generations often establish their residence in several countries before settling permanently. With Belgium being a very small country, in the centre of Europe, many Belgian residents transferring wealth need to take foreign taxation regimes into account because of:

• family members living abroad;
• taxes applying in relation to a previous residency; or
• assets held abroad.

Belgium has only signed two double taxation agreements on inheritance tax: one with France and one with Sweden. In cases where no double tax treaty applies, Belgian inheritances tax provides for a tax credit system. However, such tax credits are not foreseen for gift taxes, in which case double taxation might occur.

If the wealth planning involves the use of a trust, a foreign foundation or low-taxed foreign companies, the impact of the so-called Cayman tax needs to be taken into consideration, which provides for some compliance obligations, look-through taxation and taxation on the occasion of distributions.

Belgium has a well-defined legal framework for inheritance, which includes a forced heirship system that ensures children and spouses receive a portion of the estate. Children are entitled (together and regardless of their number) to (at least) 50% of the countervalue of the estate (leaving a portion of 50% which the deceased can dispose of freely). The spouse’s reserved portion is 50% of the estate in usufruct. This can complicate succession planning, especially if the family wishes to leave control of a business to a specific heir or divide it in a way that does not align with the legal requirements. Of course, heirs are not forced to invoke the forced heirship rules, but they do have the right to do so.

Based on the European regulation on succession, a Belgian resident who is a citizen of another country can opt for the inheritance rules of the country where they are a citizen.

If gifts have been made that would trigger the forced heirship rules, an inheritance pact can be undersigned by the donor and their heirs in order to waive forced heirship rules in relation to that gift, providing some strict formalities are respected.

In Belgium, future spouses can sign a marriage contract, which needs to be formalised in a notarial deed.

There are three permitted and recognised matrimonial property regimes.

• In the full community property regime, all assets acquired during the marriage are part of the community of property.
• The regime of separation of assets combined with a limited community of assets acquired during marriage is the default system under Belgian law, and applies if spouses do not choose another regime expressis verbis. This regime entails a separation between the joint assets and the personal assets of each spouse. The joint assets include earned income, which is essential to this regime. Assets that were acquired prior to the marriage or donations/bequests made in favour of one spouse are personal assets of the spouse.
• Under the regime of separation of property, each spouse remains entitled to their own personal assets (including earned income). There are no joint assets; at most, there are undivided assets held by each spouse for an equal part. Correction mechanisms are possible under the separation of property regime.

Within the legal regime, one spouse cannot unilaterally dispose of or alienate common assets; such decisions must be made jointly by both spouses. However, the management of the common estate is concurrent, meaning that either spouse may independently perform acts of management related to the common property. The management and disposition of a spouse’s separate (own) property is carried out by that spouse alone.

Belgium will recognise foreign prenuptial and postnuptial agreements, provided they have been validly established in accordance with the EU Matrimonial Property Regimes Regulation (Regulation (EU) 2016/1103).

Purchases and transfers of real estate located in Belgium, including buildings (except new buildings, which are subject to VAT), are subject to real estate transfer tax (RETT) due from the purchaser. The rate depends on the location of the real estate: the default rate is 12.5% of the fair market value in the Walloon and Brussels-Capital Regions, while the applicable rate is currently 12% in the Flemish Region.

Where the purchase or transfer of land is subject to VAT, no RETT will be charged.

The transfer of a property by gift or inheritance is subject to progressive rates, which vary according to the region in which the property is located and the relationship to the beneficiary (between 3% and 27% in direct line, or between 10% and 40% for other persons).

Reduced rates are available, subject to conditions (see 1.2 Exemptions). For example, there is a special regime for family homes.

Belgian law allows for many different planning techniques and opportunities, including reduced rates for registered gifts, the possibilities under civil law (usufruct, indirect gifts, etc) and the existence of vehicles such as the private foundation or the so-called société simple.

Usufruct and Bare Ownership

Ownership splits (usufruct/bare ownership) are fairly widespread in Belgium and make it possible to transfer assets to young children while retaining control.

Usufruct is a legal right that allows someone to use and enjoy the benefits (such as income or resources) of a property that belongs to another person, without owning it. The person with the usufruct, called the usufructuary, can live in the property, rent it out or use it in other ways, but they cannot sell or damage it.

Bare property, on the other hand, refers to the ownership of the property without the right to use or enjoy its benefits. The bare owner holds the title to the property but cannot exploit it until the usufruct period ends. Once the usufruct expires (eg, when the usufructuary dies or the term ends), the bare property owner gains full control of the property.

Société Simple

The société simple is often used when structuring an estate plan. It allows assets to be transferred (by a gift of the shares) while control of the assets is maintained by others (usually the parents). The company’s shares may be donated in order to pass on the assets contributed to it.

A société simple can be set up in several different situations, given the considerable freedom it offers to create a tailor-made arrangement. It does not require a notarial deed and can be done privately. In addition, the société simple is tax transparent.

Private Foundations

See 3.1 Types of Trusts, Foundations or Similar Entities.

In Belgium, the control and disposition of digital assets upon death are governed by a fragmented legal framework combining general civil law principles, contract law and data protection rules; there is no single, comprehensive statute specifically addressing digital succession.

Under Belgian law, digital assets that have an economic value – such as cryptocurrency accounts – are considered financial assets, like cash, and are therefore part of the deceased’s estate and subject to inheritance tax in the same way as other movable assets. The main legal difficulty is not ownership, but effective control: heirs must be able to identify the asset and access it.

By contrast, purely personal digital assets (such as email accounts or personal social media profiles) do not fit neatly within traditional property concepts, so their fate is often governed less by succession law than by contractual terms imposed by service providers. GDPR does not apply after a person’s death, and Belgium currently provides for no specific statutory provisions in this regard.

The Belgian private foundation was introduced in 2002 and is now governed by the rules in the Belgian Code on Companies and Associations.

Belgian private foundations are subject to legal entities tax; if they engage in commercial/economic activities in more than an accessory manner, a private foundation could be subject to corporate income tax. Being subject to tax on legal entities implies that only certain income categories will be subject to income tax, such as dividend and interest income (default rate of 30%).

A private foundation pays a yearly tax on the total of its assets on 1 January, unless this total amounts to less than EUR25,000. Debts are not deductible (with certain exceptions, such as operational costs). This is a progressive tax, with the rate amounting to:

• 0.15% between EUR50,000 and EUR250,000;
• 0.30% between EUR250,000 and EUR500,000; and
• 0.45% in excess of EUR500,000.

However, various appeals for annulment against this revised tax have been filed with the Belgian Constitutional Court.

Foreign private foundations are also recognised, but can be subject to the “Cayman tax” (see 3.3 Taxation of Trusts, Foundations and Similar Entities Located in Other Jurisdictions).

Another vehicle frequently used for planning purposes in Belgium is the société simple (see 2.6 Transfer of Assets: Vehicle and Planning Mechanisms), which is useful for managing family assets transferred to the next generation. This entity is totally tax transparent and therefore has no tax impact. It is used in order to assure maintenance of the management of the transferred assets by the donors or trusted managers (for as long as the beneficiary of the gift is still too young to manage these assets solely).

Trusts do not exist under Belgian civil law. Nevertheless, Belgian conflict-of-law rules recognise and respect foreign trusts.

The “Cayman tax” was introduced on 1 January 2015, and has been amended substantially as of 1 January 2018 and 1 January 2024. It is a look-through taxation on private individuals and legal entities (subject to the legal entities tax). Income received by a non- or low-taxed legal construct is taxable income for the founder. Trusts automatically qualify as a legal construct for the purposes of the Cayman tax.

The look-through approach entails the underlying income retaining its original qualification, and no effective distribution is required for taxation to occur. Interest received by the legal construct remains interest, dividends remain dividends, and capital gains remain capital gains. The first two categories of income are generally taxed at a flat rate of 30% in Belgium. Capital gains on movable assets realised by individuals were generally tax-exempt to the extent that they are realised within the normal management of one’s private assets, but since 1 January 2026 those capital gains are now taxed at 10%.

The look-through approach is combined with the taxation of income received (or deemed to be received) from legal constructs. Complex rules aim to prevent double taxation through this combined approach but this aim is not always reached, due to the complexity. As of 1 January 2024, exemption from taxation upon distribution by the legal construct will no longer apply if the income received by the legal construct was not effectively taxed under the look-through taxation (ie, capital gains on shares). In addition, interposing an intermediary company (which is not a legal construct) will no longer prevent the application of the Cayman tax. Furthermore, an exit tax was introduced if the founder of the legal construct migrates to another country. The scope of application of other taxable events (seat transfer of the legal construct, etc) is enlarged.

The founder can avoid pass-through treatment by showing that the legal construct (other than a trust) meets a substance test in the case of (among other requirements) the exercise of actual economic activities, which may not involve the management of the private assets of (one of) the founder(s). The substance requirements were further restricted as of 1 January 2024.

The Cayman tax applies not only to offshore legal constructs, but also to companies and legal entities established within the EEA if such entities are not sufficiently taxed.

Measures can be taken to anticipate the application of the Cayman tax. For this reason, it is important to seek advice before making investments or setting up foreign structures.

If a beneficiary or the donor of a trust serves as a fiduciary, they may be subject to the “Cayman tax” (see 3.3 Taxation of Trusts, Foundations and Similar Entities Located in Other Jurisdictions).

In Belgium, the most popular method for asset protection planning involves using family foundations, along with the strategic use of legal structures such as companies, life insurance (under certain circumstances) and holding companies. Each of these methods can provide varying levels of asset protection, but the key focus is on shielding assets from creditors, minimising inheritance taxes and ensuring smooth wealth transfer across generations.

These methods need to be analysed and adapted on a case-by-case basis to suit different family situations. A key limitation to planning can be the anti-abuse tax rules, under which the tax authorities may disregard legal acts where the taxpayer frustrates the objectives of the tax legislation without valid non-tax reasons.

In Belgium, whether the family business is an independent activity carried out as a private individual or a company, both legal forms offer the possibility of exemption from gift tax or a 0% rate. Specific rules apply in this respect in the Flemish Region, the Walloon Region and the Brussels-Capital Region.

It is also possible to obtain a reduced rate of inheritance tax (3% or 7% in the Flemish Region and the Brussels-Capital Region, and 0% in the Walloon Region), provided certain conditions are met.

For the commonly used planning techniques, see 2.6 Transfer of Assets: Vehicle and Planning Mechanisms.

Where assets are transferred by donation or inheritance, the parties are responsible for valuing them. The market value of the assets transferred must be determined. Certain adjustments and discounts may be applied, and the correctness of the values adopted must be demonstrated in the event of an audit by the authorities. For this reason, it is advisable to document the valuation of the assets properly at the time of transfer – for example, by using the services of an expert or an auditor. A minority stake will be valued with a discount for lack of control and/or illiquidity.

Disputes regarding estates are mostly driven by non-compliance with the forced heirship rules by (one of) the children or the surviving spouse. Mediation is possible and is being used more and more, with the help of a professional mediator, a notary or a lawyer. If mediation does not succeed, disputes take the form of court proceedings. The courts will initially appoint a notary to rule on the dispute.

In Belgium, there are legal protection mechanisms for specific family members heirs; forced heirs are able to claim their reserved portion of the deceased’s estate (see 2.3 Forced Heirship Laws). The reserved portion is the minimum share of the inheritance that an heir is obliged to receive regardless of the deceased’s will. The free available portion corresponds to the remaining part of the inheritance – ie, the share that the deceased can leave to whomever they wish by bequest.

If the testator has not respected the forced heirship rules, a forced heir can (but has no obligation to) claim their reserved portion of the estate. What the deceased bequeathed will then be “reduced” to the amount of the reserved portion. This protection mechanism is known as “reduction”.

There is a second mechanism for ensuring equality between heirs: the so-called “rapport”, which is a mechanism that allows gifts made during the lifetime of the deceased to be taken into account in the estate, in order to re-establish equality between the heirs (in descending line only).

The use of corporate fiduciaries is not prevalent in Belgium.

This is not applicable in Belgium.

This is not applicable in Belgium.

This is not applicable in Belgium.

“Residency” has a factual meaning under Belgian law. It is characterised by a certain permanence or continuity, independent from the (Belgian concept of) “domicile” or nationality of a person. It concerns the place where a person lives and works; it is the place where their family is housed, the place where a person stays effectively and permanently or maintains their relationships, etc.

There is a first rebuttable presumption that a person registered in the Belgian national register is deemed a Belgian resident for personal income tax purposes. The second presumption is irrefutable and qualifies a person as resident if their family is living in Belgium. There are no legal presumptions for inheritance and gift tax purposes.

The “seat of fortune” is a relevant connecting factor for personal income, inheritance and gift tax purposes. For personal income tax purposes, this connecting factor only applies in the absence of a Belgian residence. The seat of fortune is an alternative connecting factor for inheritance and gift tax purposes. The seat of fortune is located in Belgium if a private individual manages or controls their assets from Belgium, even if the assets are not located in Belgium. The localisation of their assets in Belgium is a rebuttable presumption for this test. Patrimonial interests as well as general economic interests are relevant for this test.

The notion of “citizenship” has no tax consequences in Belgium (unless under the last criteria of the tie-breaker rules of double tax treaties in relation to residency).

There are no expeditious means for an individual to obtain Belgian citizenship.

To acquire citizenship, an individual must have established their principal residence in Belgium on the basis of a legal stay:

• at the time of submitting the declaration, they must have been admitted or authorised to reside in the Kingdom indefinitely; or
• they must have been legally resident in Belgium for at least five or ten years, depending on applicable criteria, without interruption.

In addition to these conditions of legal stay and residence, conditions of social integration, economic participation, language knowledge and/or participation in the life of the host community must be met, as appropriate.

Many foreigners, as French citizens, gained Belgium citizenship in order to take residency, for example, in Monaco.

For minors or vulnerable adults, it is possible to create private foundations that can manage assets for the benefit of the protected person. These structures allow for the organisation of the transfer, management and protection of assets outside the strictly judicial framework, thus offering greater flexibility in the management and continuity of resources.

In Belgium, the appointment of a guardian or conservator necessarily requires a judicial procedure. This protective measure is decided by the Juge de paix of the domicile of the person concerned, following a petition that can be submitted by the person themselves, their family, a close relative or the public prosecutor.

The judge assesses the situation and may appoint an administrator responsible for managing either the property, the person or both, depending on the specific needs of the protected adult. This measure is subject to strict judicial oversight: the administrator must provide an annual report on their management and obtain prior authorisations for certain significant acts, such as the sale of real estate. The Juge de paix exercises continuous supervision, with the possibility to modify, suspend or revoke the measure if the person’s situation changes.

Furthermore, the Belgian system always favours the least restrictive solution, initially promoting extrajudicial mandates before resorting to a judicial measure. The objective is to protect the person while respecting their autonomy and dignity as much as possible. Regarding minors, the Juge de paix also appoints the guardian, even if the parents may propose a person in advance by will or declaration; however, the Juge de paix must verify that this choice is in the best interest of the child and may override it if necessary.

Under Belgian law, the extrajudicial protection mandate allows any capable person to designate one or more trusted individuals (mandataries) in advance, without judicial intervention, to manage their assets and/or represent them if they become unable to do so themselves. The mandate must be drafted while the person is still capable, and can take effect immediately or at a later time. The Juge de paix intervenes only in case of dispute or poor execution of the mandate, or if an alert is raised by a relative or third party. This system aims to preserve the person’s autonomy and avoid judicial protection measures, which remain subsidiary and limited to what is strictly necessary. Some planning techniques may still be undertaken through this mandate – notably, the ability to make lifetime gifts – but only if this possibility is expressly stated in the text of the mandate.

With increasing life expectancy in Belgium, families are increasingly faced with the need to financially prepare not only for their own old age but also for that of their parents and grandparents. To meet these challenges, several legal and fiscal mechanisms encourage estate planning adapted to this reality, notably taking into account the phenomenon of the “generation skip”.

Generation skipping is an estate planning strategy whereby a grandparent who wishes to transfer part of their estate prioritises direct transmission to their grandchildren rather than to their children, who are often already financially established. This approach responds to longer life spans: the children have often already achieved financial independence and no longer necessarily need an immediate gift or inheritance. Conversely, the grandchildren, who are just starting their professional lives, can benefit from this support to finance a home purchase or a life project, for example.

Under Belgian law, all children are equal before the law, regardless of the circumstances of their conception or the marital status of their parents. Thus, children born out of wedlock have the same rights as those born to married parents: their parentage can be established through recognition, legal presumption or court proceedings, and they enjoy the same inheritance rights.

Once a full (plenary) adoption is granted, adopted children are legally assimilated to biological children: they inherit from their adoptive parents and no longer from their original family. Adoption creates a complete legal parent-child relationship, fully integrating them into the categories of heirs for inheritance purposes.

Belgium does not have specific legislation regarding children born through surrogacy, but the practice is not prohibited; it is tolerated as long as it is non-commercial and the intended parenthood is based on the informed consent of all parties involved. Legal parentage depends on postnatal legal establishment and not merely on intention or genetic connection. An intended parent may become a legal parent through recognition or adoption, provided the legal conditions are met.

Children conceived after the death of a parent (posthumous conception) may be legally recognised, under strict conditions. Belgian law does not explicitly prohibit posthumous medically assisted reproduction, but such a child can inherit only if legal parentage is established within the prescribed time limits.

In all cases, inheritance rights depend on legal parentage. Belgian law recognises a child as descending from their legal parents, even in the absence of a genetic link (particularly in cases of adoption or surrogacy). Thus, it is the legally established parent-child relationship (and not merely the genetic or biological one) that determines whether the child is included among the heirs.

Depending on the Region, the following are assimilated to direct descendants for the application of the gift/inheritance tax rates:

• children adopted through simple adoption, provided, amongst other things, that the adoptive child is the child of the partner of the adopter or the adoptive child has, before reaching the age of 21, received from the adopter or from the adopter and his or her partner jointly the care and support normally received by children from their parents, for one/six/three uninterrupted years; and
• the children of the partner.

Under Belgian law, marriage between two people of the same sex is fully equivalent to marriage between opposite-sex partners. Everything is treated the same, including tax returns, inheritance rights, divorce proceedings and co-parenting.

Legal partnerships are also available for same-sex couples.

Belgian law distinguishes between married couples, legally cohabiting partners, and de facto cohabitants.

For income tax purposes, legal cohabitants are generally treated in the same way as married couples: they file a joint tax return, while each partner remains separately taxable on his or her own income. By contrast, de facto cohabitants are treated as separate taxpayers for income tax purposes and are required to file separate tax returns.

In the area of gift and inheritance taxes, the rules are determined by the Regions. In general, legally cohabiting partners are treated in the same manner as spouses. Except in the Walloon Region, de facto cohabitants may also benefit from the favourable rates applicable to spouses and legally cohabiting partners, provided the statutory conditions are met. These conditions, however, differ between the Flemish Region and the Brussels-Capital Region, and typically require a minimum period of uninterrupted cohabitation.

From a succession law perspective, legally cohabiting partners enjoy more limited statutory inheritance rights than spouses, while de facto cohabitants have no statutory inheritance rights. Consequently, wills, lifetime gifts and other estate planning techniques are frequently recommended for unmarried couples.

As the notion suggests, both legal cohabitation and de facto cohabitation require the partners to live together and share the same principal residence.

There are reduced rates of gift and inheritance tax for gifts or legacies made to associations or foundations, provided they meet certain conditions.

In terms of income tax, gifts made to associations or foundations that meet certain criteria are also deductible.

Belgium has several structures that are used for charitable planning, such as the private foundation, the non-profit association (Association sans but lucratif, or ASBL) and the public interest foundation.

Private Foundations

The private foundation is a wealth planning tool that has been widely used for several years now. It was introduced by a law of 2002 and was reformed in 2019 with the adoption of the Code of Companies and Associations. As such, the private foundation can be used in various contexts:

• as part of family estate and succession planning;
• for purely philanthropic, altruistic and disinterested purposes; or
• as a tool for certifying shares.

The private foundation can have an interesting tax regime, provided certain conditions are met (see 3.1 Types of Trusts, Foundations or Similar Entities). The main disadvantages, however, are the administrative obligations and the publicity required.

Non-Profit Associations

The ASBL and the public interest foundation are most commonly used for charitable planning.

The ASBL is an agreement between two or more members. The association must pursue disinterested purposes in the context of one or more specific activities that it has as its object, and its founders, directors or members may never directly or indirectly obtain a capital profit from the ASBL. Profits may not be distributed.

Non-profit associations have a limited tax base and are subject to a favourable tax regime, as long as they do not carry out commercial activities.

Public Interest Foundations

A public interest foundation is a foundation whose disinterested aim is to carry out a work of a philanthropic, philosophical, religious, scientific, artistic, educational or cultural nature. The articles of association of a private/public interest foundation must be set out in a notarial deed.

The public benefit nature of a foundation is recognised by Royal Decree, so the exposure of such a foundation is important.

In addition, as with private foundations, public interest foundations are subject to a special tax regime.