Inheritance tax in Belgium is calculated on each heir’s individual share of the estate, not on the estate as a whole, using progressive rates that depend on two things: how closely the heir was related to the deceased, and which of Belgium’s three regions governs the estate. Rates start at 3% for close family on smaller inheritances and climb as high as 80% for unrelated beneficiaries in one region. Because Flanders, Wallonia, and the Brussels-Capital Region each set their own brackets, exemptions, and rules, the same estate can produce very different bills depending on where the deceased last lived.
Which Region’s Rules Apply
The applicable region is whichever one the deceased called home for the longest portion of the five years before death. Someone who lived in Flanders for three of those five years and moved to Brussels shortly before dying is still taxed under Flemish rules.1FPS Finance. Payment of Inheritance Tax and Estate Duties
This is the first thing to pin down. The regions differ on rate brackets, family-home exemptions, treatment of business assets, and how lifetime gifts are pulled back into the estate. Every calculation that follows depends on the answer to this question.
Who Owes Tax and on What Assets
If the deceased was a Belgian tax resident, inheritance tax applies to the entire worldwide estate: Belgian and foreign bank accounts, investments, real estate abroad, and everything else.2Flanders.be. Inheritance Tax If the deceased was not a Belgian resident, only real estate physically located in Belgium is taxed. Movable assets held by a non-resident, such as cash, shares, or securities, fall outside Belgian inheritance tax entirely.3Brussels-Capital Region. Inheritance Tax and Estate Duties for Non-Residents
All heirs are jointly and severally liable. The regional tax office can pursue any one heir for the estate’s full tax bill, even if that person’s own share is small, so co-heirs need to coordinate on payment.
Working Out Each Heir’s Taxable Share
Start with the gross value of everything the deceased owned on the date of death: real estate, bank balances, investment portfolios, vehicles, receivables, and personal property. Subtract deductible liabilities, which include the deceased’s outstanding debts, funeral costs, and certain medical expenses incurred just before death. The result is the net estate.2Flanders.be. Inheritance Tax
Real estate must be reported at fair market value on the date of death. In Flanders, heirs can request a free binding valuation from the Flemish Tax Service before filing, which locks in the figure and prevents a later challenge. A recognized expert appraiser is the other accepted route, provided the appraiser follows the prescribed rules.2Flanders.be. Inheritance Tax Skipping both options and declaring a low figure invites reassessment and penalties.
The net estate is then split according to the deceased’s will or the default rules of succession, and the tax is calculated on each heir’s individual share.
Rates by Relationship and Region
Every region sorts heirs into relationship categories and applies a different progressive scale to each. The closer the family tie, the lower the rate. The size of the share matters too, because the scales are progressive.
Spouses, Legal Cohabitants, and Direct Descendants
The lightest rates go to the surviving spouse or legal cohabitant, children, grandchildren, and parents. In Flanders, the brackets for this group are 3% on the first €50,000, 9% from €50,001 to €250,000, and 27% above €250,000.4European Commission. Survey of the Domestic Rules on Taxes Levied Upon Death
Wallonia uses a finer nine-bracket scale for the same relatives, starting at 3% on the first €12,500 and rising to 30% on amounts above €500,000. The region also grants direct heirs, spouses, and legal cohabitants a tax-free allowance on the first €12,500 (worth €375), with an extra €12,500 exemption when the heir’s net share is €125,000 or less. Children under 21 get a further €2,500 added to the exemption for each full year remaining until they turn 21.5Wallonia. Finding Out About Inheritance Tax in the Walloon Region
The Brussels-Capital Region has its own brackets, similar in concept but different in thresholds, and applies specific exemptions and reduced rates for spouses and close family rather than a single flat allowance.
Siblings
Brothers and sisters pay much more. Flanders taxes a sibling’s share from 25% on the first €35,000 up to 55% above €75,000. Brussels uses a seven-bracket scale for siblings starting at 20% and reaching 65% above €250,000.1FPS Finance. Payment of Inheritance Tax and Estate Duties
The gap between a child and a sibling on the same amount is stark. On a €100,000 share in Flanders, a child owes about €6,000 (3% on the first €50,000 plus 9% on the next €50,000). A sibling owes about €25,250, more than four times as much.
Uncles, Aunts, Nephews, and Nieces
More distant collaterals face steeper scales again. In Wallonia the top rate for this group is 70% on shares above €175,000.5Wallonia. Finding Out About Inheritance Tax in the Walloon Region Brussels starts at 35% and also tops out at 70% above €175,000.1FPS Finance. Payment of Inheritance Tax and Estate Duties
Unrelated Beneficiaries
Friends, unmarried partners without a legal cohabitation agreement, and named organizations face the harshest scales. Wallonia’s top rate for this category is 80%.5Wallonia. Finding Out About Inheritance Tax in the Walloon Region Flanders taxes an unrelated heir at 25% on the first €35,000, 45% between €35,000 and €75,000, and 55% above €75,000. On any sizable inheritance, most of the share ends up at the top rate.
The Movable and Immovable Split in Flanders
Flanders has a calculation feature the other regions do not use. For spouses, legal cohabitants, and direct descendants, the progressive brackets apply separately to movable assets and immovable assets in the heir’s share. Each category climbs the scale independently rather than being combined into one pool.
The effect is real money. An heir receiving €200,000 in real estate and €200,000 in investments has each pot taxed through its own progression, so the higher brackets kick in later on each pool than they would on a combined €400,000 share. Wallonia and Brussels tax the combined share as a single amount.
The Main Exemptions and Reductions
Family Home
Every region gives significant relief on the deceased’s primary residence. In Flanders, the surviving spouse or legal cohabitant inherits their share of the family home fully exempt, with no monetary cap.1FPS Finance. Payment of Inheritance Tax and Estate Duties
Wallonia has offered the same full exemption to a surviving spouse or legal cohabitant since 2018. The property must have been the deceased’s main residence for at least five continuous years before death, with exceptions for moves forced by medical necessity or other compelling reasons. Children of the deceased do not get the exemption in Wallonia; they instead pay a reduced rate on the family home.5Wallonia. Finding Out About Inheritance Tax in the Walloon Region
Brussels provides relief on the family home through reduced rates and specific exemptions rather than a single blanket allowance, with its own conditions on how long the property must have served as the main residence.
Family Business
All three regions offer reduced rates for the inheritance of an active family business or shares in a qualifying family company. Flanders taxes such transfers at 3% for spouses, partners, and lineal relatives and 7% for other heirs, provided the business has genuine economic activity and the deceased (with family) held at least 50% of the shares, or 30% combined with one or two other shareholders reaching 70% or 90% together.1FPS Finance. Payment of Inheritance Tax and Estate Duties
The relief comes with conditions. The business must continue operating without interruption for at least three years after the death. For family companies, financial statements must keep being filed and capital cannot be reduced during that period. Breach any of these and the full standard tax becomes due retroactively.1FPS Finance. Payment of Inheritance Tax and Estate Duties
Wallonia goes further and applies a 0% rate to the transfer of a qualifying family business.5Wallonia. Finding Out About Inheritance Tax in the Walloon Region The definition of a qualifying business is strict across all regions. Passive investment holdings and residential real estate held inside a company structure generally do not qualify.
Disability
Heirs with a recognized disability may get a statutory rate reduction or a higher tax-free allowance, depending on the region. Flanders provides a specific tax reduction on part of the share, with the exact benefit depending on the nature of the disability and the regional rules.
Gifts Made Before Death
Lifetime giving is a common way to reduce a future inheritance tax bill, because gift tax rates are substantially lower than inheritance tax rates. A registered gift triggers gift tax at the time of transfer. An unregistered hand gift or bank transfer avoids gift tax altogether, but Belgian law has a look-back rule: if the donor dies within a set period, the gifted assets are pulled back into the estate and taxed at inheritance rates.
As of 2026, all three regions apply a five-year look-back period for unregistered movable gifts. This is recent. Wallonia moved to five years in 2022, Flanders followed on January 1, 2025, and Brussels-Capital made the switch on January 1, 2026. Gifts made before those transition dates remain under the old three-year rule.6FPS Finance. Gifts
A gift that was formally registered and on which gift tax was paid stays outside the inheritance tax base regardless of when the donor dies. That is why registering large gifts is a routine planning move.
Foreign Assets and Double Taxation
Because Belgian residents are taxed on their worldwide estate, foreign property can be taxed twice: once by Belgium and once by the country where it sits. Belgium has formal inheritance tax treaties with only France and Sweden.
For every other country, Belgian domestic law offers a tax credit. Inheritance tax paid abroad on real estate can be credited against the Belgian tax owed, up to the amount of the foreign tax. Heirs need dated proof of the foreign payment, a certified copy of the foreign inheritance declaration, and the foreign tax calculation. Flanders and Brussels have extended the credit to movable assets taxed abroad. Wallonia has not formally amended its legislation to the same extent, though heirs can invoke a Belgian Constitutional Court ruling to claim comparable relief.
Filing and Payment Deadlines
Heirs must submit a Declaration of Succession to the relevant regional tax administration. The deadline depends on where the death occurred:
- Death in Belgium: four months from the date of death
- Death in another EEA country: five months
- Death outside the EEA: six months
The trigger is EEA membership, not continent.2Flanders.be. Inheritance Tax
The declaration lists all assets and liabilities, valuation reports for real estate, every heir with their relationship to the deceased, and each heir’s specific portion. Bank accounts are frozen when the death is notified and only unblock on presentation of a certificate of inheritance from FPS Finance or a notarial deed. A notary is required when the estate includes real estate, a will, a marriage contract, or heirs living abroad.
The tax is due at the same time the declaration is filed. Interest accrues monthly on any unpaid balance from the original due date, and fines apply to late filings. Both compound quickly on larger estates, so meeting the deadline matters.
A Worked Example
A Flemish resident dies leaving a net estate worth €400,000 split equally between two children, with no surviving spouse. Each child inherits €200,000. The estate consists of €120,000 in real estate and €280,000 in investments, so each child’s share breaks down to €60,000 in immovable property and €140,000 in movable property.
Because Flanders taxes movable and immovable assets through separate bracket progressions for lineal heirs, each child runs two calculations. On the €60,000 immovable share: 3% on the first €50,000 (€1,500) plus 9% on the remaining €10,000 (€900), for €2,400. On the €140,000 movable share: 3% on the first €50,000 (€1,500) plus 9% on the remaining €90,000 (€8,100), for €9,600. Each child owes €12,000, and the estate pays €24,000 in total, an effective rate of 6%.
If that same €200,000 share went to an unrelated friend instead of a child, the friend would face rates of 25%, 45%, and 55% on a single combined pool, producing a tax of roughly €86,500, an effective rate above 43%. The relationship between heir and deceased is the single biggest variable in the whole calculation.