When you inherit property, you pay inheritance tax on its value. How is that value determined, and how can you avoid disputes with VLABEL?
When you inherit property in Flanders, you pay inheritance tax on the value of that property. The higher the value, the more tax — which is precisely why an accurate, certified valuation matters so much.
How does VLABEL calculate inheritance tax?
VLABEL calculates inheritance tax on the basis of the market value of the property on the day of death. The market value is the price a motivated buyer would be willing to pay on the open market. You declare this value yourself in the estate return — but VLABEL can contest it.
What are the rates in Flanders?
Inheritance tax in Flanders is progressive and depends on the relationship between the deceased and the heir. In the direct line (parents, children) rates run from 3% to 27%. Between brothers, sisters and other persons, rates rise to as much as 65%. The tax is calculated on each heir's net share separately.
What if VLABEL contests the value?
If VLABEL considers the declared value too low, the tax authority can impose an assessment of its own based on a higher value it determines itself. That leads to an additional charge, increased with late-payment interest. A certified valuation by a VLABEL-certified valuer-expert protects you: the value is accepted as binding.
How do you avoid problems?
Have the property valued by a certified valuer before filing the estate return. The valuation report is submitted as an annex and gives you legal certainty. The cost of the valuation does not outweigh the risk of an assessment imposed by the authority.
Dekoninck Vastgoedexperts draws up VLABEL-compliant valuation reports that are accepted by the Flemish Tax Authority, notaries and courts.