Chapter 2 Gift Tax
A gift tax is due when donating movable or immovable property.2 The gift tax is calculated based on the value of the goods that are transferred, and according to a rate that increases with the value of the goods and the distance of the (family) relationship3 between the donor and beneficiary. The tax rates also differ by type of good (movable vs. immovable) and by region. Some tax reductions exist and exemptions are granted in case of donations of recently inherited goods. To prevent people from transferring a property in a sequence of donations to escape the progressive rates, the value of donations made within three years following the initial donation are added to the value of the initial donation to determine the rate.
2.1 Brussels
Movable property is taxed at a flat rate of 3% when donating towards a partner, child , grandchild, parent or grandparent. For other people, the flat rate is 7%. Donations of family businesses to the partner, parents, grand-parents, children, grand-children, brothers, sisters, nephews and nieces are not taxed (if some criteria are met regarding the activities, ownership and location of the firm). Immovable property is taxed at the progressive rates detailed in Tables 2.1 and 2.2.
| From (€) | To (€) | Rate |
|---|---|---|
| 0.01 | 150000 | 0.03 |
| 150000.01 | 250000 | 0.09 |
| 250000.01 | 450000 | 0.18 |
| 450000.01 |
|
0.27 |
| From (€) | To (€) | Rate |
|---|---|---|
| 0.01 | 150000 | 0.10 |
| 150000.01 | 250000 | 0.20 |
| 250000.01 | 450000 | 0.30 |
| 450000.01 |
|
0.40 |
A reduction of 2% per child (respectively 4% when the donor is the partner) is granted on the tax on immovable property donations for families with at least 3 children younger than 21, with a maximum of 62€ (respectively 124€) per child.
2.2 Flanders
Movable property is taxed at a flat rate of 3% when donating towards a partner, child , grandchild, parent or grandparent. For other people, the flat rate is 7%. Donations of family businesses to the partner, parents, grand-parents, children, grand-children, brothers, sisters, nephews and nieces are not taxed (if some criteria are met regarding the activities, ownership and location of the firm). Immovable property is taxed at the progressive rates detailed in Tables 2.3 and 2.4.
| From (€) | To (€) | Rate |
|---|---|---|
| 0.01 | 150000 | 0.03 |
| 150000.01 | 250000 | 0.09 |
| 250000.01 | 450000 | 0.18 |
| 450000.01 |
|
0.27 |
| From (€) | To (€) | Rate |
|---|---|---|
| 0.01 | 150000 | 0.10 |
| 150000.01 | 250000 | 0.20 |
| 250000.01 | 450000 | 0.30 |
| 450000.01 |
|
0.40 |
A reduction of 2% per child (respectively 4% when the donor is the partner) is granted on the tax on immovable property donations for families with at least 3 children younger than 21, with a maximum of 62€ (respectively 124€) per child. Moreover, reduced rates exist when donating to a non-profit organization or foundation (5.5%), when transferring an immovable property where renovation works (improving energy-efficiency) of at least 10.000€ are done in the 5 following years, when certifying the conformity of the building and renting it for at least 9 years, or when investing in protected buildings. Rebates (depending on the age and relationship with the donator of the beneficiary) are also granted to handicapped beneficiaries.
2.3 Wallonia
Movable property is taxed at a flat rate of 3,3% when donating towards a partner, child , grandchild, parent or grandparent. For other people, the flat rate is 5,5%. Donations of family businesses to the partner, parents, grand-parents, children, grand-children, brothers, sisters, nephews and nieces are not taxed (if some criteria are met regarding the activities, ownership and location of the firm). Immovable property is taxed at the progressive rates detailed in Tables 2.5 and 2.6. In Wallonia, a donation of immovable property is subject to inheritance tax if the donor deceases within 3 years (the difference between the gift tax and inheritance tax is then due by the beneficiary).
| From (€) | To (€) | Rate |
|---|---|---|
| 0.01 | 150000 | 0.03 |
| 150000.01 | 250000 | 0.09 |
| 250000.01 | 450000 | 0.18 |
| 450000.01 |
|
0.27 |
| From (€) | To (€) | Rate |
|---|---|---|
| 0.01 | 150000 | 0.10 |
| 150000.01 | 250000 | 0.20 |
| 250000.01 | 450000 | 0.30 |
| 450000.01 |
|
0.40 |
A reduction of 2% per child (respectively 4% when the donor is the partner) is granted on the tax on immovable property donations for families with at least 3 children younger than 21, with a maximum of 62€ (respectively 124€) per child. Reductions are granted under conditions in case of energy efficiency renovations.
2.4 Modelling assumptions
- Gifts to the partner are not modeled.
- Assumptions are made to impute the shares of the total value of the gift that belong to the different categories: immovable, movable, business. (To be specified)
2.5 Module input
2.5.1 Variables
#> Warning in create_inputvar_table(path_xlsx): Some variables are missing:
#> drg_h_sc, gift_dwe01, gift_imm01, gift_mov01, gift_bus01, gift_dwe02,
#> gift_imm02, gift_mov02, gift_bus02, gift_dwe03, gift_imm03, gift_mov03,
#> gift_bus03, gift_fw01, gift_fw02, gift_fw03.| Name | Description | Database |
|---|---|---|
| drg_h_sc | Region | SILC |
| gift_bus01 | value of received business (first gift) | Other |
| gift_bus02 | value of received business (second gift) | Other |
| gift_bus03 | value of received business (third gift) | Other |
| gift_dwe01 | value of received family dwelling (first gift) | Other |
| gift_dwe02 | value of received family dwelling (second gift) | Other |
| gift_dwe03 | value of received family dwelling (third gift) | Other |
| gift_fw01 | from whom received (first gift) | Other |
| gift_fw02 | from whom received (second gift) | Other |
| gift_fw03 | from whom received (third gift) | Other |
| gift_imm01 | value of received immovable property excl. Family dwelling (first gift) | Other |
| gift_imm02 | value of received immovable property excl. Family dwelling (second gift) | Other |
| gift_imm03 | value of received immovable property excl. Family dwelling (third gift) | Other |
| gift_mov01 | value of received movable property (first gift) | Other |
| gift_mov02 | value of received movable property (second gift) | Other |
| gift_mov03 | value of received movable property (third gift) | Other |
2.5.2 Parameters
| Name | Description | Value (2020) |
|---|---|---|
| gift_b_brack_direct_bus | brussels / brackets / direct relative / business | Inf |
| gift_b_brack_direct_imm | brussels / brackets / direct relative / immovable property | 150000, 250000, 450000, Inf |
| gift_b_brack_direct_mov | brussels / brackets / direct relative / movable property | Inf |
| gift_b_brack_distant_bus | brussels / brackets / distant relative / business | Inf |
| gift_b_brack_distant_imm | brussels / brackets / distant relative / immovable property | 150000, 250000, 450000, Inf |
| gift_b_brack_distant_mov | brussels / brackets / distant relative / movable property | Inf |
| gift_b_brack_other_bus | brussels / brackets / other / business | Inf |
| gift_b_brack_other_imm | brussels / brackets / other / immovable property | 150000, 250000, 450000, Inf |
| gift_b_brack_other_mov | brussels / brackets / other / movable property | Inf |
| gift_b_brack_sibling_bus | brussels / brackets / sibling / business | Inf |
| gift_b_brack_sibling_imm | brussels / brackets / sibling / immovable property | 150000, 250000, 450000, Inf |
| gift_b_brack_sibling_mov | brussels / brackets / sibling / movable property | Inf |
| gift_b_rates_direct_bus | brussels / rates / direct relative / business | 0 |
| gift_b_rates_direct_imm | brussels / rates / direct relative / immovable property | 0.03, 0.09, 0.18, 0.27 |
| gift_b_rates_direct_mov | brussels / rates / direct relative / movable property | 0.03 |
| gift_b_rates_distant_bus | brussels / rates / distant relative / business | 0 |
| gift_b_rates_distant_imm | brussels / rates / distant relative / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_b_rates_distant_mov | brussels / rates / distant relative / movable property | 0.07 |
| gift_b_rates_other_bus | brussels / rates / other / business | 0.07 |
| gift_b_rates_other_imm | brussels / rates / other / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_b_rates_other_mov | brussels / rates / other / movable property | 0.07 |
| gift_b_rates_sibling_bus | brussels / rates / sibling / business | 0 |
| gift_b_rates_sibling_imm | brussels / rates / sibling / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_b_rates_sibling_mov | brussels / rates / sibling / movable property | 0.07 |
| gift_b_red_child21_max | brussels / reduction / per child younger than 21 / maximum | 62 |
| gift_b_red_child21_rate | brussels / reduction / per child younger than 21 / rate | 0.02 |
| gift_f_brack_direct_bus | wallonia / brackets / direct relative / business | Inf |
| gift_f_brack_direct_imm | flanders / brackets / direct relative / immovable property | 150000, 250000, 450000, Inf |
| gift_f_brack_direct_mov | flanders / brackets / direct relative / movable property | Inf |
| gift_f_brack_distant_bus | flanders / brackets / distant relative / business | Inf |
| gift_f_brack_distant_imm | flanders / brackets / distant relative / immovable property | 150000, 250000, 450000, Inf |
| gift_f_brack_distant_mov | flanders / brackets / distant relative / movable property | Inf |
| gift_f_brack_other_bus | flanders / brackets / other / business | Inf |
| gift_f_brack_other_imm | flanders / brackets / other / immovable property | 150000, 250000, 450000, Inf |
| gift_f_brack_other_mov | flanders / brackets / other / movable property | Inf |
| gift_f_brack_sibling_bus | flanders / brackets / sibling / business | Inf |
| gift_f_brack_sibling_imm | flanders / brackets / sibling / immovable property | 150000, 250000, 450000, Inf |
| gift_f_brack_sibling_mov | flanders / brackets / sibling / movable property | Inf |
| gift_f_rates_direct_bus | flanders / rates / direct relative / business | 0 |
| gift_f_rates_direct_imm | flanders / rates / direct relative / immovable property | 0.03, 0.09, 0.18, 0.27 |
| gift_f_rates_direct_mov | flanders / rates / direct relative / movable property | 0.03 |
| gift_f_rates_distant_bus | flanders / rates / distant relative / business | 0 |
| gift_f_rates_distant_imm | flanders / rates / distant relative / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_f_rates_distant_mov | flanders / rates / distant relative / movable property | 0.07 |
| gift_f_rates_other_bus | flanders / rates / other / business | 0.07 |
| gift_f_rates_other_imm | flanders / rates / other / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_f_rates_other_mov | flanders / rates / other / movable property | 0.07 |
| gift_f_rates_sibling_bus | flanders / rates / sibling / business | 0 |
| gift_f_rates_sibling_imm | flanders / rates / sibling / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_f_rates_sibling_mov | flanders / rates / sibling / movable property | 0.07 |
| gift_f_red_child21_max | flanders / reduction / per child younger than 21 / maximum | 62 |
| gift_f_red_child21_rate | flanders / reduction / per child younger than 21 / rate | 0.02 |
| gift_w_brack_direct_bus | wallonia / brackets / direct relative / business | Inf |
| gift_w_brack_direct_imm | wallonia / brackets / direct relative / immovable property | 150000, 250000, 450000, Inf |
| gift_w_brack_direct_mov | wallonia / brackets / direct relative / movable property | Inf |
| gift_w_brack_distant_bus | wallonia / brackets / distant relative / business | Inf |
| gift_w_brack_distant_imm | wallonia / brackets / distant relative / immovable property | 150000, 250000, 450000, Inf |
| gift_w_brack_distant_mov | wallonia / brackets / distant relative / movable property | Inf |
| gift_w_brack_other_bus | wallonia / brackets / other / business | Inf |
| gift_w_brack_other_imm | wallonia / brackets / other / immovable property | 150000, 250000, 450000, Inf |
| gift_w_brack_other_mov | wallonia / brackets / other / movable property | Inf |
| gift_w_brack_sibling_bus | wallonia / brackets / sibling / business | Inf |
| gift_w_brack_sibling_imm | wallonia / brackets / sibling / immovable property | 150000, 250000, 450000, Inf |
| gift_w_brack_sibling_mov | wallonia / brackets / sibling / movable property | Inf |
| gift_w_rates_direct_bus | wallonia / rates / direct relative / business | 0 |
| gift_w_rates_direct_imm | wallonia / rates / direct relative / immovable property | 0.03, 0.09, 0.18, 0.27 |
| gift_w_rates_direct_mov | wallonia / rates / direct relative / movable property | 0.033 |
| gift_w_rates_distant_bus | wallonia / rates / distant relative / business | 0 |
| gift_w_rates_distant_imm | wallonia / rates / distant relative / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_w_rates_distant_mov | wallonia / rates / distant relative / movable property | 0.055 |
| gift_w_rates_other_bus | wallonia / rates / other / business | 0.055 |
| gift_w_rates_other_imm | wallonia / rates / other / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_w_rates_other_mov | wallonia / rates / other / movable property | 0.055 |
| gift_w_rates_sibling_bus | wallonia / rates / sibling / business | 0 |
| gift_w_rates_sibling_imm | wallonia / rates / sibling / immovable property | 0.1, 0.2, 0.3, 0.4 |
| gift_w_rates_sibling_mov | wallonia / rates / sibling / movable property | 0.055 |
| gift_w_red_child21_max | wallonia / reduction / per child younger than 21 / maximum | 62 |
| gift_w_red_child21_rate | wallonia / reduction / per child younger than 21 / rate | 0.02 |
2.7 References
[] Echo (l) - Donations immobilières. 2020. URL: https://www.lecho.be/monargent/succession/bruxelles-reconsidere-les-droits-de-succession-sur-l-immobilier/10146533.html.
[] Notaire.be - donations entreprises. 2020. URL: https://www.notaire.be/donations-successions/donation-d-entreprise.
[] SPF Finances - Donations. 2020. URL: https://finances.belgium.be/fr/particuliers/famille/donations.
[] Vlaamse Overheid - Schenkbelasting. 2020. URL: https://www.vlaanderen.be/schenkbelasting/wanneer-is-de-schenkbelasting-verschuldigd.
When donating movable property, the donor and beneficiary can choose to register the donation or not. If they do, a gift tax is due. If they do not, no gift tax is due but an inheritance tax will be due if the donor deceases within three years. When donating immovable property, a notarial deed is always compulsory and a gift tax is levied.↩︎
In the subsequent sections, we use the terms direct relatives to designate children, grandchildren, parents and grandparents. Distant relatives designate aunts, uncles, nieces and nephews.↩︎