Real estate donations are increasing in the three regions of the country, but especially in Wallonia with a jump of 28% compared to last year. These figures are explained by a change in taxation. We explain to you.
Real estate donations are popular at the moment. Nearly 6,000 Walloons have carried out this operation since the start of the year. It’s almost 20 real estate donations a day.
“It is a duty for adults who own property, to ensure the future of their children, it is quite logical“, comments a citizen whom we interviewed in the street.”It is the least of the things, since it is nevertheless the inheritance of us to our children. I guess before it was the state that took. So now it’s good that it goes directly to our children and that the state does not feed on that“, expresses another.
This boom in property donations can be explained by a change in taxation in Wallonia.
Parent-child rate has dropped dramatically, allowing for estate planning
Today, we are less taxed when we want to give a property to a family member. “Wallonia lowered the donation tax rate at the start of 2019, this is obviously a tax incentive. Today there are two rates: a rate between everyone else and a rate between parents and children. Parent-child rate has dropped dramatically, allowing for estate planning“, explains Sylvain Bavier, notary.
Concrete example: several thousand euros saved for a property of 150,000 €
To better understand, let’s take an example: by selling an apartment of € 150,000 to your child, you are now taxed at € 4,500. It’s 3% of the property’s value. Before the 2018 reform, it cost you € 10,625. Or, the equivalent of inheritance tax.
In some cases, a donation of real estate to a direct child has therefore become as attractive as a donation of movable property. “Obviously, each case is specific and it is especially with the notary that you can check your financial situation, so as to know if a donation is necessary or not“, specifies Sylvain Bavier.
These real estate donations must go through a notarial act. This is not the case for movable donations.
According to the Federation of Notaries, on average, the Belgian decides to make a donation between 70 and 80 years old. December is also the privileged month for this type of big gift.
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