Inheriting a Property in Belgium: Inheritance Tax, Exemptions and Smart Tips by Region

Inheriting a property in Belgium in 2025: what you need to know

Inheriting a property is a significant event for many people in Belgium. Alongside the emotional weight, it brings important financial and administrative obligations. Inheritance tax on real estate can be substantial, but there are also valuable exemptions and smart planning strategies available. In this article you will find everything about inheriting a property in Belgium in 2025: the current rates by region, exemptions for the family home, and practical tips to reduce your inheritance tax bill.​

Inheritance tax on a property: how does it work?

When you inherit a property, you must pay inheritance tax on the value of the real estate you receive. The amount of tax depends on three factors: the value of the property, your relationship to the deceased, and the region where the deceased lived.​

In Belgium, inheritance tax is a regional competence. Flanders, Wallonia and Brussels each apply their own rates and exemptions. The competent region is determined by the fiscal domicile of the deceased during the last five years of their life. If the deceased lived in more than one region during that period, the region where they lived longest is the one that applies.​

Inheritance tax rates by region in 2025

The rates for inheriting a property in Belgium in 2025 differ considerably between the three regions. Below is an overview of the current rates for heirs in direct line (children, grandchildren, parents) and partners.

Flanders - rates for direct line and partners:

In Flanders, movable and immovable assets are taxed separately. This means you pay inheritance tax on the property independently of savings or investments. This can work in your favour because you are less likely to move into a higher tax bracket.​

Brussels and Wallonia - rates for direct line and partners:

In Brussels and Wallonia, movable and immovable assets are added together. This can mean you move into a higher tax bracket more quickly.​

Family home exemption for the surviving partner

One of the most important exemptions when inheriting a property in Belgium in 2025 is the exemption for the family home. In all three regions, the surviving partner can inherit the family home without paying inheritance tax on it.​

Conditions in Flanders:

The exemption applies to married couples, legally cohabiting partners and de facto cohabiting partners. For de facto cohabitants, the requirement is that they lived together for at least three years before the death and that there is no relationship in the direct line (children or parents do not qualify). The exemption must be explicitly requested in the estate declaration under the section 'Favourable arrangements'.​

Conditions in Brussels:

The exemption applies to married couples and legally cohabiting partners. Since 2024, de facto cohabitants are also eligible, provided they lived together for at least one year. Certain family relationships - brothers, sisters, nephews, nieces - are excluded.​

Conditions in Wallonia:

The exemption applies to married couples and legally cohabiting partners. An important additional condition is that the deceased must have lived in the property during the last five years of their life.​

What if you cannot pay the inheritance tax?

Inheriting a property sounds appealing, but what if you do not have enough liquid assets to cover the inheritance tax bill? This is a common problem, particularly when the property was the main asset in the estate.​

In Flanders, Brussels and Wallonia, you can apply to the tax authority for a payment deferral. The request must be well substantiated - for example by demonstrating that you have no savings and need to sell the property first. Bear in mind that a deferral is not free of charge. The tax authority charges interest for the late payment.​

Another option is to sell the property in order to pay the inheritance tax. This can be emotionally difficult, but is sometimes the only realistic solution. Working with an estate agent who has experience with inherited properties is advisable. Via comparing estate agents you can find local experts who can guide you through the process.

Upcoming changes: lower inheritance tax from 2026-2028

The Flemish and Walloon governments have announced significant reforms that will considerably reduce inheritance tax.​

Flanders - from 2026 (phased in until 2029):

The Flemish government is planning a thorough overhaul of inheritance tax. Children will no longer pay inheritance tax on the first €50,000 of both movable and immovable assets. The brackets will be adjusted: 3% on €50,000-€150,000, 9% on €150,000-€250,000, and 27% above that. Partners will receive an increased exemption of €150,000 on movable assets. Brothers and sisters will also benefit from lower rates.​

Wallonia - from 2028:

Wallonia will halve its inheritance tax rates. The maximum rate for heirs in the direct line will fall from 30% to 15%. For other heirs - brothers, sisters, nephews, nieces - the maximum rate will drop from 70% to 35%. At the same time, gift taxes on real estate will be halved.​

Gifting or inheriting: which is more advantageous?

A frequently asked question is whether it is more advantageous to gift real estate during your lifetime or to leave it as an inheritance after death. The answer depends on your personal situation, but in many cases gifting is more tax-efficient.​

Advantages of gifting:

Gift tax on real estate is generally lower than inheritance tax. In all three regions, gifts in the direct line are taxed at rates ranging from 3% to 27%, depending on the value. You can also spread the gift over several years to stay within lower tax brackets.​

A popular technique is gifting with a reserved right of usufruct. You transfer the bare ownership of the property to your children, but retain the right to continue living there or to receive the rental income. On your death, the usufruct is extinguished and your children automatically become full owners, without any additional inheritance tax.​

Disadvantages of gifting:

A gift is irrevocable. You cannot go back on your decision. In addition, there may be consequences for any tax benefits your children currently enjoy, such as the housing bonus if they have an outstanding mortgage loan.​

Step-by-step guide: what to do when you inherit a property

Have you just found out that you are inheriting a property? Follow this step-by-step guide to handle everything correctly.​

Step 1: Check whether a will exists

Contact a notary to find out whether the deceased drew up a will. This determines who the heirs are and in what proportions.​

Step 2: Decide whether to accept or renounce the inheritance

You have three months to decide whether to accept the inheritance, accept it under benefit of inventory (which protects you against debts exceeding the value of the estate), or renounce it entirely. Seek proper advice from a notary.​

Step 3: Have the property valued

For the estate declaration, you must declare the value of the property. Request a free valuation to obtain a realistic figure.

Step 4: Submit the estate declaration

In Flanders, you must file an estate declaration with the Flemish Tax Authority (VLABEL) within four months of the death. This can be done electronically via ERFonline or by post. The same deadlines apply in Brussels and Wallonia.​

Step 5: Pay the inheritance tax

Once you receive the tax assessment, you have two months to pay the inheritance tax. Make sure you pay on time to avoid penalties.​

Step 6: Decide what to do with the property

Do you want to live in the property yourself, rent it out, or sell it? If you decide to sell, work with an experienced estate agent. Via comparing estate agents you can find the right professional for a smooth sale.

Tips to reduce your inheritance tax bill

Want to keep inheritance tax on a property as low as possible? Here are proven strategies:​

Plan ahead with gifts: Transfer real estate during your lifetime, if appropriate with a reserved right of usufruct. Gift tax is lower than inheritance tax and you retain control over your living situation.

Spread gifts over several years: In Flanders and Wallonia, gifts from the same donor to the same recipient within three years are aggregated. By leaving sufficient time between gifts, you stay within lower tax brackets.

Make use of the family home exemption: Make sure you meet all the conditions for the exemption and apply for it explicitly in the estate declaration.

Consider a generation skip: Gift or bequeath part of your estate directly to your grandchildren. This avoids double taxation - first at your children's level, then at your grandchildren's level.

Seek professional advice: Every situation is unique. A notary or wealth planner can help you determine the most advantageous strategy.

Inheriting a property in Belgium in 2025: summary

Inheriting a property brings both emotional and financial challenges. The inheritance tax can be substantial, but with the right knowledge and planning you can save considerably. The family home exemption protects surviving partners, and the upcoming reforms in Flanders and Wallonia will reduce rates further.

Whether you are an heir or want to plan your own estate: get well informed and seek professional help in good time. For an accurate valuation of an inherited property, you can turn to local estate agents. Compare estate agents or request a free valuation directly.

Plan wisely, reduce your inheritance tax, and ensure a smooth transfer of property to the next generation.