This year, the number of registered donations in Flanders increased by 22.4 per cent compared to last year. The figure comes from notaris.be, the Belgian solicitors’ website. ‘We strongly suspect that the increase is due to the extension of the so called “suspect period” for donations and inheritance tax’ the solicitors’ organisation says.
In the first 11 months of 2025, notaries registered some 11,168 donations of non-real estate, compared to only 9,123 last year. According to Helena Verwimp, solicitor and spokesperson for notaris.be, this increase is not surprising: ‘More and more Flemish people want to take matters into their own hands. They want to decide for themselves what they donate and how much tax they pay on it.’
When someone donates movable property, such as money, this can be done inheritance tax-free as long as the donor remains alive for five years after the donation, the so called “suspect period”.
Until this year this period lasted three years, but at the beginning of this year it was extended to five years in Flanders. ‘People today are more anxious that they will not survive that longer period,’ says Verwimp.
Better safe than sorry
For example, many people over the age of 75 choose to donate part of the proceeds from their parental home to the next generation.
‘Whereas they used to be convinced that they would still be around for those three years, today there is more doubt. By extending the suspect period, they now have to reach the age of 80 for heirs to avoid higher tax.’
‘So people are choosing to play it safe: they register their gift and pay donation tax on it immediately. This is usually a flat rate of 3 per cent. And once that gift tax has been paid, the gift can no longer be included in the inheritance,’ explains Verwimp.
The heirs of anyone who does not register the gift and therefore does not pay gift tax, but dies within a period of five years, can still expect to pay inheritance tax. ‘That can be 9 per cent inheritance tax for very close relatives, but it can also be as high as 27 per cent.’
‘Different rates of 3, 9 or 27 per cent mean registration makes quite a big difference.’
Property is a piggy bank
As a solicitor, Verwimp deals with numerous gifts: ‘People mainly gift money, shares or property.’ But sometimes they want to give away too much, Verwimp notes. ‘We sometimes really have to warn people.’
For example, people sometimes come to Verwimp to donate their house to their children. ‘People often hear that donating means less tax is due than when it is inherited. But if the house is their nest egg, their last savings pot, then a donation is not a good idea. Once something has been donated, it is really gone from your estate.’
‘Suppose later they need to go into a nursing home with limited financial resources. If the house is sold, they will not receive anything from it. And it is important not to strip yourself bare before you go to sleep.’