Inheritance tax must be paid on an inheritance. How much inheritance tax one has to pay depends on the degree of relationship of the heir to the deceased, the size of the estate and the composition of the inheritance (movable and immovable property).
Every year, the Flemish government collects 1.6 billion euros in inheritance tax. Inheritance tax has changed over the years. For example, a reform in 2018 provided new exemptions for the surviving spouse or cohabiting partner. There was an exemption on the first tranche of 50,000 euros for movable property (savings, investment portfolio,…).
Open Vld MP Mercedes Van Volcem would like to go one step further and abolish the tax between spouses or legal cohabitants. According to her, many people experience the “tax on grief” as “unjust”. The tax comes on top of the loss of a loved one and the loss of an income (or pension).
Moreover, according to Van Volcem, it often happens that older people die shortly after their partner. In this way – especially when the partner does not immediately pass it on to the children – the rate of 27 percent is applied twice in a short time.
According to Van Volcem, abolishing inheritance tax between spouses and cohabiting partners would cost the Flemish government about 162 million euros. But according to the Open Vld politician, there is room “by abolishing the housing bonus”.