The new inheritance tax reduction for single people in Flanders

Who is eligible for the single-person deduction?

The single person deduction is intended for individuals who, at the time of their death:

• leave no surviving partner;

• do not leave behind any children or grandchildren.

Do you want to take advantage of this provision? If so, you must explicitly state this in your will. In your will, you must specify who the beneficiary or beneficiaries are and that they are eligible for the single person’s tax deduction.

The beneficiaries must be natural persons. You can therefore designate one person, or multiple people, such as family members, friends, or other loved ones.

What tax benefit does the single person’s tax reduction offer?

With the single person deduction, you can bequeath up to 100,000 euros per estate at a reduced tax rate.

The following rates apply per beneficiary:

• 3% on the first 50,000 euros;

• 9% on the portion between 50,000.01 euros and 100,000 euros.

This is significantly more advantageous than the standard inheritance tax rates for individuals who are not closely related to the deceased, which can reach as high as 55%.

Multiple beneficiaries?

If you name multiple beneficiaries, it is important to clearly specify in your will how the maximum amount of 100,000 euros will be distributed among them.

If this distribution is not specified and the designated amount exceeds 100,000 euros, the distribution will generally be made proportionally based on what each beneficiary receives from the estate.

What happens to the former “friends’ inheritance”?

The single person’s tax deduction is gradually replacing the “friends’ inheritance” provision.

Under the former “friends’ inheritance” provision, you could use a will to bequeath up to 15,000 euros to one or more friends or distant relatives at a more favorable tax rate. The maximum tax savings under this provision amounted to 3,300 euros.

For wills drawn up before January 1, 2026, the “friends’ inheritance” provision may still have tax implications.

For wills drawn up on or after January 1, 2026, the “friends’ inheritance” provision no longer applies.

Important to know:

• the “friends’ inheritance” rule and the “single person’s deduction” cannot be applied together to the same estate;

• if both provisions apply, the single person’s deduction takes precedence.

Why is it advisable to review your will?

Are you single and do you have no children or grandchildren? If so, the single person’s tax deduction could be an attractive way to leave a portion of your estate to the people of your choosing in a tax-efficient manner.

Do you already have a will that includes the former “friends’ inheritance” provision? If so, it’s wise to check whether that will still aligns with your wishes and complies with the new regulations.

Questions about the single person’s tax deduction or your will?

The rules surrounding estate tax and estate planning are constantly evolving. A will that was optimal a few years ago may no longer be the best choice today.

Our experts in estate and succession planning would be happy to work with you to determine which arrangement best suits your situation. We’ll advise you on the options available under the single person’s tax deduction and help you draft or amend your will.