Wallonia reduces gift tax

In the wake of the tax reform in December 2017, the Walloon government is proposing to reduce the gift tax of houses and apartments and to simplify the calculation of the tax. Wallonia follows Flanders and Brussels.

The gift tax is calculated depending on the relationship between the donor and the donee and the value of the gift.

In direct line (between parents and children) and between spouses and civil partners

On the bracket between

€0 and €150,000

€150.000 and €250.000

€250,000 and €450,000

Over €450,000€

3%

9%

18%

27%

For everyone else (siblings, uncles and nieces, and friends)

On the bracket between

€0 and €150,000

€150.000 and €250.000

€250,000 and €450,000

Over €450,000€

10%

20%

30%

40%

The maximum rate was 40% for brothers and sisters and 50% for everyone else.

If the beneficiary of the gift carries out works to make the property more energy-efficient, he will be able to recover part of the gift tax: 25% of the cost of the works with a maximum of €2,500.

Author: Marc Quaghebeur

Marc Quaghebeur is a Belgian tax lawyer with Cabinet DAVID specialising in international tax issues and cross border estate planning. He is a member of the Brussels Bar and the Society of Trust and Estate Practitioners. He

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