In Flanders, inheriting from friends will soon be less expensive. The Flemish parliament on Wednesday approved a reduction in inheritance tax in such a case. It allows people to bequeath part of their inheritance to one or more close friends, or even distant relative (s) at a reduced rate. Until now, tax rates for them have climbed to 55%.
As soon as it was set up, the Flemish government opted to continue with the reform of inheritance rights. Thus, the launch of the “legacy of friends” was included in the government agreement which also wishes to support donations or inheritances to charities.
Parliament has given the green light to the envisaged reform. The tax rates for bequeaths to charity or for a donation during his lifetime will be reduced to 0%.
It will also become more taxable to attribute an inheritance to your best friends. The rate for the first 15,000 euros will be reduced from 25% to 3%, with a maximum net benefit of 3,300 euros.
The reforms will take effect on July 1.