Inheriting from friends is getting cheaper
The Flemish Parliament yesterday approved the friends legacy, with which people can bequeath a certain part of their legacy to one or more close friends or distant relatives.
Until now, the higher tax rates on the sidelines applied, up to 55 percent. The rate for the first 15,000 euros will be increased from 25 percent to 3 percent, with a maximum net benefit of 3,300 euros.
In addition, the government has made it more attractive to inherit or donate to charity. The rates to leave an inheritance to charity or to donate something alive will be lowered to 0 percent. In 2019, all deceased Flemish people together left 894 million euros to people who did not fall in a straight line and were not a brother or sister. Of this, 671 million euros was taxed at 55 percent. The reforms will come into effect on July 1.