by Stephanie Vanmarcke and Febe Louage
The end of the ‘cheese route’ and the consequences for foreign assets
From 1 December 2020, all gifts of moveable assets that are notarised abroad must be registered in Belgium. 7 July, the parliamentary committee adopted a legislative proposal that brings an end to the popular ‘cheese route’.
The registration requirement goes further than the classic gifting of Belgian company shares before a Dutch notary, covering any gift made by a Belgian resident before a foreign notary. From 1 December, all gifts of foreign movable assets that are notarised abroad must also be registered in Belgium. Such foreign moveable assets could be shares in a foreign company, for example, or a yacht that is moored outside Belgium.
In practical terms, this means that from 1 December, you will have to pay tax on certain gifts both in Belgium and abroad. Gifts are taxed at 3 percent in Flanders and Brussels and 3.3 percent in Wallonia.
Do you have any foreign moveable assets that you have been thinking about gifting to your children someday soon? Do not put it off for too much longer. Our experts are happy to help you determine the legislative proposal’s effects on your personal situation.
Stephanie Vanmarcke
Team Manager International stephanie.vanmarcke@vdl.be
Febe Louage
Senior Advisor International febe.louage@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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