The number of charitable legacies has fallen by almost half after the abolition of the duo bequest. This is evident from figures from Flemish Minister of Finance Matthias Diependaele (N-VA) at the request of Maurits Vande Reyde (Open VLD).
In recent years, the number of legacies to charities has increased significantly due to the duo legacies. This provided a tax advantage if part of the inheritance went to a good cause. The system was abolished on 1 July last year. Since then, 0 percent can still be left to a charity, but it no longer provides a tax advantage.
In the first six months after the abolition of the tax advantage, only 221 legacies were left to the charity, good for 79 million euros. A decrease of 46 percent. At its peak, in 2020, an amount of 391 million euros was left to charities.
Vande Reyde thinks it is a good thing that the duo legacies have disappeared, but argues in favor of simplifying inheritance taxes even further and abolishing them completely in the long run. “It remains incomprehensible that you inherit at three percent within your family, but that the rates outside it can rise to as much as 65 percent,” he says. “Many people have worked all their lives and paid one of the highest taxes in the world. Having to hand over more than half of your property to the government at the end of the ride is really unjustifiable. That goes against the principle that you cannot tax something twice.”
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.