The family home: the inheritance tax exemption

Which exemption are we talking about?

The family home is the one where the deceased and their spouse (or legal cohabitant) lived. Inheritance tax is normally calculated on each heir’s net share (see inheritance tax on property). For the family home, two regimes exist:

• a full exemption for the surviving spouse or legal cohabitant;
• a reduced rate for heirs in the direct line (children, for example).

It is the Region where the deceased lived the longest during their last 5 years that applies its rules. The property itself must be located in that Region for the children’s reduced rate.

In Wallonia: the spouse’s exemption

According to notaire.be, the surviving spouse or legal cohabitant is exempt from tax on their net share in the family home. The conditions are as follows:

• the estate includes at least a share in full ownership (the exemption can also cover a usufruct or a bare ownership);
• the building is intended wholly or partly for housing;
• the deceased and their spouse have had their main residence there for at least 5 years.

The 5-year condition is deemed met in the event of force majeure or a compelling reason (family, medical, professional or social). The Walloon decree states that residence is proven by the population register or the register of foreign nationals, unless proven otherwise. When the register data show that the conditions are met, the tax collector grants the exemption automatically. Otherwise, it must be requested in the inheritance tax return.

What changes in 2028

The decree of 5 December 2024 deletes the words “for at least five years” in the article on the spouse’s exemption. This deletion applies to deaths occurring from 1 January 2028. For a death in 2026 or 2027, the 5-year condition still applies. Notaire.be sums up the reform as follows: the surviving spouse or legal cohabitant keeps the exemption with no condition on length of occupation.

In Wallonia: the reduced rate for children

Heirs in the direct line are not exempt. They can benefit from a reduced rate if:

• the estate includes at least a share in full ownership of the building where the deceased had had their main residence for at least 5 years;
• the building is intended wholly or partly for housing and located in the Walloon Region;
• it is received by an heir, legatee or donee in the direct line.

Here is the reduced rate presented by notaire.be:

The reduced rate is maintained if the deceased was unable to stay in the home because of force majeure or a compelling reason. It must then be requested and justified in the return. As for the spouse, the 5-year condition disappears for deaths from 1 January 2028, and the reduced rates also change on that date: consult the decree or your notary for the 2028 scale.

In Brussels

Notaire.be states that in Brussels too, the surviving spouse or legal cohabitant is exempt on their share of the family home on death. The page specifies that this exemption does not apply to certain legal cohabitants related to the deceased by blood (for example a parent in the direct line, a brother, a sister, a nephew, a niece, an uncle or an aunt). They benefit from a reduced rate.

For heirs in the direct line, a reduced rate exists if the property was the deceased’s main residence for at least 5 years and if the estate includes full ownership of the building:

The value taken into account for this rate is capped at €250,000. The surplus is taxed at the normal rate. The property must be located in the Brussels Region and residence is proven by an extract from the population register or the register of foreign nationals. The page gives no update date: have the conditions confirmed as at the date of death.

Pitfalls to avoid

• Official residence. It is the register that proves the main residence. Check with the notary what the registers show.
• The type of ownership. The exemption covers the spouse’s net share, not the whole house. If the children receive a share, their rate applies.
• The date of death. The same situation can be treated differently before and after 1 January 2028 in Wallonia.
• The return. Where the exemption is not granted automatically, it must be requested in the return, to be filed within 4 months of a death in Belgium (see our guide on inheritance tax).

Which professional to consult

A notary checks whether the conditions are met, prepares the inheritance tax return and requests the exemption or the reduced rate in the right place. If the heirs disagree on the value of the property, a written valuation by a property valuer or a surveyor (géomètre-expert) can help.