📅 Last updated: 8 May 2026
· 🏷 Topic: Gifting, children, wealth planning
· 🇧🇪 For: Belgian parents with securities portfolios
Gifting during your lifetime can be a tax-efficient alternative to inheritance for Belgian parents. Rates are typically lower than inheritance tax, and it lets you help your children when they need it.
Two forms of gifting
1. Bank gift (hand gift for movable property):
- No notarial deed required.
- 0% gift tax, provided that…
- 5-year survival expectancy: if the donor dies within 5 years, the amount falls back into the estate and is taxed as inheritance.
2. Notarial gift:
- Via a notary.
- Flanders: 3% gift tax in direct line (children, partner) or 7% for others.
- Immediately definitive — no risk period.
- Notary fees ~€500-1,500 depending on the amount.
Advantages of gifting during lifetime
1. Lower taxation than inheritance.
Flemish notarial gift: 3% flat for direct line / partner.
Flemish inheritance (since 1 January 2026, with €50,000 tax-free amount for direct line): 0% (first €50k) → 3% (€50-150k) → 9% (€150-250k) → 27% (>€250k).
Example: gifting vs. inheriting an estate of €500,000 to children (Flanders).
| Gift 3% | Inheritance (Flemish 2026 scale) | |
|---|---|---|
| 0-€50k | €1,500 | €0 (exempt) |
| €50k-€150k | €3,000 | €3,000 (3%) |
| €150k-€250k | €3,000 | €9,000 (9%) |
| €250k-€500k | €7,500 | €67,500 (27%) |
| Total | €15,000 | €66,000 |
Difference: ~€51,000 less tax by gifting during lifetime (using the corrected 2026 Flemish direct-line scale: 3% to €50k, 9% to €250k, 27% above).
How does gifting securities work?
Option 1 — Transfer the entire securities account:
- Notarial deed: donor transfers account (or part) to recipient.
- Rates Flanders: 3% (direct line).
- Ensures formal transfer.
Option 2 — Gift + sale proceeds:
- Sell securities on the parent’s account.
- Transfer cash to the child via bank gift (0%, 5-year rule).
- Child re-buys securities themselves.
Disadvantage of option 2: the sale triggers TOB + since 2026 10% capital gains tax above the €10k exemption.
Preferred in 2026 (since CGT): direct transfer of securities (notarial) without selling in between — the gift itself is not a taxable event for capital gains tax (gift is “out of scope” according to EY, Loyens & Loeff, Grant Thornton).
⚠️ Important nuance — no step-up after gifting: the recipient inherits the donor’s effective acquisition price under the 2026 CGT. For securities the donor acquired before 1 January 2026, the effective basis is the 31 December 2025 closing price — pre-2026 unrealised gains are not passed on (they are shielded). For securities the donor acquired after 1 January 2026, the child inherits the donor’s actual purchase price. When the child later sells, the 10% CGT is calculated from this effective basis, not from the value at the time of gifting. The family does not escape CGT on post-2026 gains — it is deferred and passed on.
Gifting strategy
1. Spread over time:
⚠️ Important on progressive add-back: for movable property (securities, money), in no Belgian region is there cumulation within 3 years for the rate — each flat gift tax (3% or 7%) applies independently, regardless of earlier gifts. The 3-year cumulation only applies to immovable gifts. The practical reason to spread gifts is therefore not rate progression, but:
- Each new gift starts its own 5-year suspect period. By gifting regularly, you build a gradual transfer base that does not all return into the estate at the same time if the donor suddenly dies.
- It allows you to help your children periodically when they need it (first home, studies, etc.).
E.g. €50,000 per child every 3 years via bank gift with the 5-year survival period in mind.
2. Combine with clauses:
- Reservation of usufruct: the donor retains the right to income/dividends, the child receives bare ownership.
- Return clause: if the child dies before the donor, it returns to the donor.
- Resolutive conditions (e.g. “unless child marries before 25”).
These clauses require a notarial deed — not possible via bank gift.
Risk of bank gift (5-year rule)
Upon death within 5 years of the bank gift, the gifted amount is counted in the estate. Inheritance tax is then still due.
Insurance against the 5-year rule: take out a gift insurance that covers the inheritance tax if the donor dies within 5 years.
Practical check before gifting
- Do I have enough left for myself? Gifting can reduce your wealth — don’t give away so much that your own standard of living is at risk.
- How old am I? At 70+, the 5-year rule becomes statistically riskier — then a notarial gift is safer.
- Multiple children? Gifts to one child without considering the others can lead to conflict — consider equal distribution or transparency.
- Usufruct? With a notarial deed, you can retain usufruct — you still receive dividends or rental income from the gifted securities.
💡 Gifting is complex and region-specific. For estates >€250k: always consult a notary. Fees are outweighed by savings.
🔗 See Inheritance tax by region (NL) for the broader inheritance context.
Frequently asked questions
Bank gift or notarial gift — what’s the difference?
A bank gift (hand gift for movable property) requires no notarial deed and is in principle 0% gift tax, but carries a 5-year survival expectancy: if the donor dies within 5 years, the amount falls back into the estate. A notarial gift in Flanders costs 3% in direct line (children, partner) or 7% for others, but is immediately definitive — no risk period.
What are the Flemish gift tax rates on securities in 2026?
For a notarial gift in Flanders, the rate is 3% flat in direct line (children, partner) or 7% for others. By comparison: the Flemish direct-line inheritance scale (since 1 January 2026, with €50,000 tax-free amount) runs from 0% (first €50k) to 3% (€50-150k), 9% (€150-250k) and 27% (>€250k) — which is why gifting is substantially more advantageous for large estates.
What is the 5-year rule for bank gifts?
Upon death within 5 years of a bank gift, the gifted amount is counted in the estate and inheritance tax is still due. You can cover that risk with a gift insurance that covers the inheritance tax if the donor dies within 5 years. At 70+, the rule becomes statistically riskier — then a notarial gift is safer.
Do I need to spread gifts to stay in a lower tax bracket?
No, not for tax reasons. For movable property (securities, money), in no Belgian region is there cumulation within 3 years for the rate — each flat gift tax (3% or 7%) applies independently. The 3-year cumulation only applies to immovable gifts. The practical reason to still spread: each new gift starts its own 5-year suspect period, and it lets you help your children periodically.
Is it better to gift securities directly or sell them first?
In 2026, a direct notarial transfer of securities is preferred. The gift itself is not a taxable event for capital gains tax (gift is “out of scope” according to EY, Loyens & Loeff, Grant Thornton). Selling on your own account and gifting cash (option 2) triggers TOB and since 2026 10% capital gains tax above the €10k exemption.
Does my child get a cost-basis step-up after the gift?
No. The recipient inherits the donor’s effective acquisition price under the 2026 CGT. For securities acquired before 1 January 2026, the effective basis is the 31 December 2025 closing price — pre-2026 unrealised gains are shielded. For securities acquired after 1 January 2026, the child inherits the actual purchase price. The 10% CGT on post-2026 gains is therefore deferred and passed on, not avoided.
Can I include usufruct or a return clause?
Yes, but only via a notarial deed — not via bank gift. Possible clauses: reservation of usufruct (donor retains right to income/dividends, child receives bare ownership), return clause (if the child dies before the donor, it returns to the donor), and resolutive conditions (e.g. “unless child marries before 25”).
How much does a notarial gift cost and when is a notary needed?
Notary fees are ~€500-1,500 depending on the amount. A notary is required for clauses such as usufruct or a return clause, and is strongly recommended for estates >€250,000: fees are then outweighed by the savings. A bank gift can be done without a notary, but offers no clauses and carries the 5-year rule.
Sources
- Notaris.be — Gifting wealth
- Flemish Tax Administration — Gift tax
- Wikifin — Gifting and inheritance
Opening a Securities Account in Belgium: Checklist
Opening a securities account in Belgium: required documents, fiscal residence, NBB CAP registration, and a step-by-step checklist for new investors.
Belgian Investment Taxation: TOB, CGT, Reynders [2026]
Belgian investment taxation: 0,12-1,32% TOB, 30% dividend withholding, 2026 capital gains tax (10% above €10.000) and the Reynders tax explained.
Second-Home Tax Treatment in Belgium
Belgian tax treatment of a second home: cadastral income, mortgage deductibility, and the 5-year capital-gains rule. 2026 update for second-home owners.
