The government of Wallonia has changed its planned inheritance tax reform, replacing a proposal to cut tax rates by half with a smaller package of exemptions and limits. The revised plan is expected to take effect in 2028, meaning current tax rules will remain in place for now.
Under the new proposal, spouses, legal partners and close family members would pay no inheritance tax on the first €75,000 they receive. For other categories of heirs, the tax rate would be limited to a maximum of 50 percent. This would represent a change for people who currently face rates of up to 80 percent when inheriting from someone outside their close family.
The government believes the revised system could help a large number of families while reducing the cost of the reform. It estimates that the new plan would cost the region around €200 million each year. The earlier proposal was expected to cost approximately €400 million annually.
The decision follows changes to the region’s budget plans. The original reform had been presented as a major reduction in inheritance taxes. However, the government later decided that the full rate cut would place too much pressure on public finances.
The issue has attracted different reactions from tax experts and legal professionals. Some lawyers believe the revised plan is less ambitious than the original promise and could create uncertainty for families planning to transfer assets. They have also questioned whether the government will maintain the new rules over the long term.
Notaries have offered a more positive view. They argue that the €75,000 allowance and the maximum rate could benefit many families while keeping the cost of the reform under control.
Inheritance tax is an important source of revenue for Belgium’s regions. The issue is likely to become more significant as large amounts of wealth are transferred between generations over the coming years.
For now, residents should not expect an immediate reduction in their tax bills. The revised rules are not due to begin before 2028, and the existing rates will continue to apply until then.
