REAL ESTATE DONATIONS

For various reasons, you may want to donate real estate during your lifetime. If this is your case, the few points listed below may be of interest to you.

The donation of real estate is subject, from a fiscal standpoint, to donation rights, a tax payable to the Region. The rate of these donation fees depends, on the one hand, on the relationship which links the donor to the donee and, on the other hand, on the value of the building donated on the day of the donation. Also note that these rates are progressive.

Donation rights online (therefore in particular between parents and children) vary from 3 to 27% depending on the installments and are identical in the three Regions of the country.

In the Brussels Region, what is given today will no longer appear in the estate assets. The famous deadline for the possible death of the donor within 3 years has been removed (since January 1, 2016). The value of the donation of real estate is therefore never taken into account in the calculation of inheritance tax.

It is now possible to transmit 150,000 euros (ceiling for the 1st tranche) per parent and per child at a rate of 3%, excluding fees and notary fees.

It is also good to know that in terms of property donation, the meters are reset to zero every 3 years. If you wish to donate several buildings, it is better to wait until a period of 3 years has elapsed between each donation. This will allow you to benefit from the lowest tax rate.

Table of applicable progressive donation rates

*Slice*	Direct line legal spouse / cohabitants	Between all other people
Of 1 at *150.000 €*	3%	10%
*150.001* at *250.000 €*	9%	20%
*250.001* at *450.000 €*	18%	30%
Above *450.000 €*	27%	40%

However, we must be careful because a donation is irrevocable and its effect is immediate. It is therefore advisable to consider a donation accompanied by one or the other condition which will be recorded in the notarial deed.

Several options are available to you :

The donation with reserve of usufruct is the most popular formula. Children become bare owners of the building and, on the death of the parents, they automatically become full owners, at no cost. In the presence of two spouses, it may be useful to provide for a usufruct increase clause which implies that on the death of the first parent, the survivor's usufruct will relate to all of the property donated.
The donation with annuity charge ensures the donor a regular financial contribution until his death.
The ban on resale.
The conventional return clause

In the context of estate planning, it is also possible to act upon the purchase of a property by what is called a split purchase. Parents acquire property with their children. The former buy the usufruct of the building, to maintain its enjoyment or collect the income, and the latter buy the bare ownership using funds previously received from their parents. Be careful, however, that the donation of money precedes the acquisition of the building.

Your notary will be your best adviser on the matter and will help you to see more clearly according to your family and patrimonial situation because sometimes the donation is not the best solution.

Indeed, family housing is totally or almost exempt from inheritance tax in favor of the surviving spouse / legal cohabitant. Exemptions and reduced rates also exist for direct successions in this same family home. A precise and thorough analysis will therefore prove to be very useful to determine what is most interesting in the case that concerns you.

Lecobel Vaneau
Place Brugmann 11, Ixelles 1050
Tel : +32 2 340 72 70
@ : lecobel@lecobel.be