Belgium's inheritance tax rates can reach 70% for non-relatives — and expats are often blindsided. Here's what you need to know about Belgian succession law, digital assets, and protecting your family.

The Bill Your Family Wasn't Expecting

Imagine this: you've spent years building a life in Brussels. You have a flat, savings, investments, a crypto wallet, and years of accumulated digital assets. Then the unthinkable happens — and your family discovers that Belgium wants up to 70% of what you leave behind.

This isn't a hypothetical. Belgium has some of the highest inheritance tax rates in Europe, and they apply in ways that catch expats off guard — especially those who assumed their home country's rules still applied.

If you live in Belgium, or have assets there, this article is for you.

How Belgian Inheritance Tax Works (And Why It's So Complex)

Belgium is a federal state, and inheritance tax — known as erfbelasting in Flanders and droits de succession in Wallonia and Brussels — is a regional competence. This means the rates and exemptions differ depending on where you officially reside.

Flanders:

Direct heirs (spouse, children, grandchildren): 3% to 27%
Brothers and sisters: 25% to 55%
Other heirs (friends, colleagues, unmarried non-registered partners): 25% to 55%
"Others" (distant relatives or unrelated persons): 45% to 55%

Wallonia and Brussels:

Direct heirs: 3% to 30%
Brothers and sisters: 20% to 65%
Others: 30% to 80%

If you've been living in Brussels for years but never registered as a tax resident, Belgium may still claim you. And if you moved regions in the last five years, the tax authority looks at where you lived longest — a rule that surprises many expats.

The EU Succession Regulation: Friend or Foe?

Since 2015, the EU Succession Regulation (EU 650/2012) allows EU citizens to choose whether the law of their country of residence or their country of nationality governs their estate.

This is significant for expats. A British, American, or Australian expat in Belgium is subject to Belgian inheritance tax regardless — but the law governing who inherits (the substantive succession law) can potentially be chosen.

However, there's a catch many miss: choosing the law of your nationality protects the distribution of your estate but does not exempt you from Belgian inheritance tax. You still need to file a Belgian declaration of inheritance and pay taxes on assets located in Belgium or on your worldwide estate if you were a Belgian tax resident.

And "tax resident" has a broader definition than you might think.

Digital Assets: Belgium's Newest Frontier

Belgian law has not fully caught up with the digital world, but Belgian tax authorities have made their intentions clear: digital assets are part of your taxable estate.

This includes:

Cryptocurrency holdings (Bitcoin, Ethereum, altcoins)
NFTs and tokenized investments
PayPal balances and digital payment accounts
Subscription-based digital goods with monetary value
Domain names and online businesses

The challenge is practical: if your heirs don't know these assets exist — or can't access them — the tax authority may still assess estimated values and demand payment. Your family could owe tax on assets they can never actually access.

This is the digital inheritance trap: invisible assets, very visible tax bills.

What Happens If You're an EU Institution Employee?

Brussels is home to the largest concentration of EU civil servants in the world. If you work for the EU, NATO, or a similar international organization, you may believe you're exempt from Belgian tax residency rules.

You may be right — but only partially. Diplomatic and EU protocol status can provide some protections, but it varies by organization and employment type. Your private assets, particularly real estate and non-institutional investments, may still be subject to Belgian inheritance tax.

If you're in this category, assume nothing. Get specific legal advice.

The Three Things Expats Get Wrong

1. Assuming the will from their home country is enough.

A British will, a French will, an American will — none of these are automatically recognized in Belgium without proper procedures. Your family will need to navigate the Belgian notarial system, potentially obtain a European Certificate of Succession, and comply with Belgian registration requirements. This process takes time and money.

2. Not registering a legal cohabitation or updating their family situation.

Belgium recognizes three types of couple status: married, legally cohabiting (cohabitation légale / wettelijke samenwoning), and de facto cohabiting. The inheritance tax treatment differs enormously. Legally cohabiting couples in Flanders get essentially the same rates as married couples. De facto cohabiting partners, however, may be taxed as "others" — paying up to 55% or 80% depending on the region.

If you and your partner have been living together in Brussels for years without formalizing your status, this could cost your partner hundreds of thousands of euros.

3. Leaving digital accounts without access instructions.

Even if your family knows what you owned, they may not be able to prove it, access it, or transfer it. Belgian notaries increasingly deal with digital estate questions, but without credentials, recovery options, and clear instructions, assets can be permanently lost — while the tax bill remains.

A Practical Checklist for Expats in Belgium

Determine your fiscal domicile. Where you are registered as a tax resident matters enormously. Consult a Belgian notaire (Dutch: notaris) or fiscal lawyer.
Draft a Belgian will — or a harmonized will. Work with a Belgian notary to ensure your estate is structured correctly for Belgian law.
Register your relationship status. If unmarried but cohabiting, legal cohabitation is simple to register and dramatically reduces your partner's tax exposure.
Make a digital asset inventory. List every digital account, wallet, subscription, and online asset — with enough access information for your heirs.
Store everything securely and accessibly. Your family needs access to your documents and instructions when something happens. A locked file on your laptop helps no one.

Why Secure Storage Is as Important as Legal Planning

All the estate planning in the world fails if your family can't find your documents when they need them.

Your Belgian notary's contact details. Your will. Your cryptocurrency recovery phrases. Your digital account list. Your investment portfolio summary. Your pension information. These need to be stored somewhere your loved ones can actually reach — securely, immediately, and without needing a lawyer to access them first.

That's exactly what LegacyShield is designed for: zero-knowledge encrypted storage for your critical documents and instructions, accessible by your designated contacts when it matters most.

Belgium's inheritance system will already be complex enough for your family. Don't make it harder by leaving them in the dark.

Set up your vault today at LegacyShield — because your family deserves to focus on grieving, not on tracking down your digital life through Belgian bureaucracy.

Belgium's Hidden Inheritance Trap: What Expats Must Know Before It's Too Late