Flanders applies progressive inheritance tax rates that vary significantly based on the relationship between the deceased and the beneficiary. Direct descendants (children, grandchildren) benefit from the most favorable treatment, with rates ranging from 3% on the first €50,000 to 27% on amounts exceeding €250,000. Spouses and legal cohabitants are entirely exempt from inheritance tax in Flanders.

Siblings face steeper rates, starting at 25% for the first €75,000 and rising to 55% beyond €125,000. Other relatives and unrelated beneficiaries are taxed at rates between 25% and 65%, depending on the degree of kinship and the estate value. These high marginal rates make tax planning essential for non-direct heirs.

Flanders offers several key exemptions and deductions. The family home passes tax-free to surviving spouses or cohabitants, and children can claim reduced rates if they continue living in the property for at least five years. Business assets and agricultural land qualify for reduced valuations under continuity conditions, supporting intergenerational transfer of family enterprises.

Recent reforms have focused on simplifying the tax calculation and expanding exemptions for modest estates. The regional government maintains an online calculator to help executors and beneficiaries estimate their tax liability. Proper estate planning, including strategic use of gifts and trusts, can substantially reduce the overall inheritance tax burden.

For comprehensive guidance on inheritance and gift tax planning across all Belgian regions, see our Belgian Inheritance and Gift Tax Guide.

This content is for informational purposes only and does not constitute legal or tax advice. Always consult a qualified tax advisor for matters specific to your situation.