What changed on Jan. 1, 2026 in terms of Flemish taxes?

Reform of inheritance tax

While more sweeping reforms were promised (such as, for example, the modification of the tax brackets with the creation of a tax-free bracket), only the following adjustments were retained in this "first phase":

The Single Reduction

Childless single persons can designate one or more beneficiaries who can jointly inherit up to €100,000 at an advantageous rate. (per beneficiary: the first bracket of €50,000 at 3%, the second bracket of €50,000 at 9%). This reduction replaces the so-called "friends inheritance"

The partner abatement

This was increased from €50,000 to €75,000. Thus, on the first €75,000 of movable property, the surviving partner must pay no inheritance tax. (For real estate, the exemption of the family home remains)

Strict conditions favorable inheritance and gift tax regime for family companies.

In our insight of 31/10/2025, this was already discussed in detail, below how it was effectively decided:

The favor system can not be applied for transfers of residential property in a family business or its corresponding value in the sales value of the shares of family companies.

Residential real estate = primarily intended or used for habitation, building lots are also considered residential real estate.

Exception: If the following conditions are met, the reduced rate does apply:

1. at least 75% of the turnover is generated by the exercise of an activity related to residential real estate, and
2. the company has at least one employed employee (1FTE) in the three years preceding the death.

Exemption from road tax for vehicles purely powered by electricity or hydrogen

Currently, vehicles purely powered by electricity or hydrogen do not pay road taxes. However, when registering such a vehicle from 1/1/2026, you will have to pay a low circulation tax and annual road tax. However, the rates are still a lot lower than for cars with internal combustion engines. Regardless of the number of fiscal horsepower, the one-time registration tax (BIV) is €61.5 (not indexed), the annual circulation tax is €102.96 (indexed annually). This for both passenger cars and light trucks.

Strict conditions for reduced registration duties on the purchase of a single owner-occupied dwelling

From January 1, 2026, you must not only be domiciled at the address within three years of the purchase, but you must also remain domiciled there continuously for at least one year. In addition, from now on the property must be purchased in full ownership and only natural persons are eligible for the reduced rate.

Fiscal regularization round

This offers taxpayers the opportunity to declare amounts that should have been subject to Flemish inheritance or registration taxes. Taxpayers are given the opportunity to still pay the taxes due and an additional tax. In return, they receive an attestation that gives them certainty that they will not have to pay taxes on this later or can be penalized for this.

If you would like to know more about the above or if you have any other questions, please feel free to contact us for an introductory discussion without obligation.