Suspicious period in gifts goes from three to five years in Flanders as of 01.01.2025

In Flanders, the so-called suspect period for unregistered gifts would go from three years to five years as of Jan. 1, 2025. What exactly does that mean for you if you want to donate something? Should you really hurry or not?

To register a donation or not? It is allowed, but not required as far as a gift of chattel is concerned. A real estate gift is always subject to (progressive) gift tax, but for a moveable gift you may choose what you do. In the case you register, you pay the gift tax of 3% in the direct line and between partners and 7% between everyone else. On the other hand, when you die, the person who receives the gift no longer has to pay inheritance tax on the gifted property.

If the gift is movable property, you are not required to register. You can also work with a hand or bank donation. In that case, no gift tax is due if you do not have that hand gift registered.

If no gift tax is paid, then you should consider a “suspect period.” This means that if the donor were to die within a certain period of time after the gift, the donee will still have to pay inheritance tax on that gift.

What will change as of 01.01.2025?

Until 31.12.2024, this period in the Flemish region is three years, but from 01.01.2025 it will be five years. For a non-registered hand or bank donation from that date, you will then have to live another five years for the donee not to have to pay inheritance tax.

If no registration occurs at the time of the hand gift, then registration can be done later on a voluntary basis. You can do this in three ways:

• online, through MyMinfin, by uploading the donation documents;
• (ii) by mail, by sending the donation documents to the appropriate scanning center;
• (iii) by appointment in an office Legal Security (registration office).

For unregistered donations up to 31.12.2024, the suspect period of three years continues to apply. Only for new unregistered donations from 01.01.2025 will the longer period of five years apply. Subsequent registration (e.g. in case of serious illness of donor) remains possible, as well as entering into an insurance that pays the inheritance tax in case of death during the suspect period.