Record Belgians Use Pass-Through Gifts to Avoid Tax

A record number of Flemish Belgians are using a legal tax avoidance mechanism known as a “doorgeefschenking” (pass-through gift) to transfer inherited assets to the next generation without paying additional gift tax. In 2025, 1,251 such deeds were registered—a 372% increase since the system was introduced in 2019—involving €398 million in assets and generating €13.3 million in tax exemptions, according to Het Laatste Nieuws.

What Is a Pass-Through Gift?

A doorgeefschenking works as follows: Person A dies and leaves an inheritance to Person B (typically a child). Person B pays inheritance tax on the received assets. Within one year of the death, Person B can then gift those inherited assets to Person C (typically their own child—the grandchild) without paying additional gift tax. The inheritance tax already paid is deducted from the normally applicable gift tax, and in most cases, the result is zero additional tax.

As Isabelle Verhulst, wealth expert at HLN, explains: “A pass-through gift is a technique where someone receives an inheritance and immediately gifts that inherited wealth to the next generation, without paying gift tax on it.”

Record Growth in Usage

The numbers tell a striking story of rapidly growing adoption. From 265 deeds in 2019, usage surged to 1,251 in 2025—a 372% increase. The total value of assets passed through reached €398 million in 2025 alone, with a corresponding tax exemption of €13.3 million—a fourfold increase from €2.4 million in 2019.

Since the system’s introduction in September 2018, over 10,000 homeowners have used it to transfer houses, apartments, and building plots to children or grandchildren. In total, more than 10,602 real estate properties have been transferred, according to data obtained by Flemish MP Katrien Schryvers (CD&V), who originally proposed the mechanism.

“Now that people are generally older when they inherit, they often don’t need the entire inheritance anymore,” Schryvers said. “Their children or grandchildren, on the other hand, are at an age where they could really use those resources.”

How the System Works

The doorgeefschenking was introduced as part of a broader reform of Flemish inheritance tax that took effect on September 1, 2018. It was designed to address a demographic reality: people are living longer, meaning children often inherit when they are already in their 50s or 60s and may not need the assets themselves. Their own children, however, are typically in their 20s to 40s and could benefit from financial help for housing, education, or starting a family.

The average donor in 2024 was 73 years old, while the average beneficiary was 43, illustrating how the mechanism facilitates intergenerational wealth transfer that skips a generation.

As Schryvers noted on her official website: “The flexibility is the great asset of this system. Whoever inherits can pass on a portion and keep a portion, for example as a nest egg for later costs such as a stay in a care home. This way, the older generation gives the younger generation a boost, while still building in some security for themselves.”

Not Without Risks

Despite its benefits, experts warn of potential pitfalls. The exemption is limited to the amount of inheritance tax already paid. If the gift tax would be higher than the inheritance tax paid, the difference must still be paid. Additionally, the mechanism can create complications with the “wettelijke reserve” (legal reserve)—Belgian law that guarantees children a minimum share of their parents’ estate.

Verhulst cautions: “A pass-through gift is a good idea if you don’t need the money yourself and want to give the next generation a financial boost. But you have to be careful. From my experience, people sometimes think too quickly that they don’t need that inheritance.”

She advises donors to assume they will live to 100, consider that a care home can cost €3,000 per month, and account for unexpected medical expenses and inflation before passing on assets too quickly.

A System Under Debate

While proponents celebrate the doorgeefschenking as a flexible family-friendly tool, critics argue it exacerbates inequality. Professor Michel Maus, tax law expert at KU Leuven, has been a vocal critic, calling the system another “back door” in a deeply flawed inheritance tax system.

“There are so many back doors that we all know who still pays inheritance tax in the current system: the uninformed,” Maus said. “Instead of more back doors to avoid inheritance or gift tax, we need a thorough debate about the entire system. Go to lower rates and close the back doors and tricks, so that everyone pays.”

The cumulative tax expenditure is significant: over €54 million in exemptions since 2018. Critics argue this primarily benefits those with substantial assets who can afford professional tax planning advice, while less-informed taxpayers effectively subsidize these savings.

What to Watch For

With adoption growing rapidly—averaging nearly five properties transferred per day—the doorgeefschenking is becoming a standard part of estate planning in Flanders. Key questions remain: Will the growing tax expenditure prompt political debate about reforming the system? What impact does this have on the Flemish housing market, particularly for first-time buyers? And are efforts being made to increase awareness among all socio-economic groups?

For now, the system remains politically popular as a family-friendly measure. But as Professor Maus points out, the broader question of fundamental inheritance tax reform—with lower rates and fewer exemptions—still lacks political support.