Compared to France, Belgium is not very far. However, the country has many advantages for owners of large assets, which is why tax evasion is occurring in the direction of Belgian jurisdiction.
No Tax on Fortune
Several reasons incite the French to be domiciled fiscally in Belgium. Indeed, there is no wealth tax in Belgium. Apart from geographical proximity, this lack of wealth tax is the main attraction of this jurisdiction. Thus, it is very favorable to the important patrimonies, the economy of ISF representing only a sufficient reason to leave the territory.
In France, the trend of tax exile in Belgium mainly concerns the wealth tax on assets estimated at more than 8 million euros or even 5 million euros.
Normal management of private wealth
In addition to the absence of the wealth tax, Belgium does not impose capital gains on shares realized as part of normal management of private wealth. This aspect is particularly favorable to company managers. As this notion is not defined by law, the definition of the normal management of private wealth refers only to the assets held and the transaction carried out.
In the case where it is not a normal private asset management action, the capital gains on the shares are considered as miscellaneous income and taxed at the rate of 33% or 16.5% if the transfer of ownership is important.
By this notion of normal private wealth management, entrepreneurs can also escape taxes on capital gains on movable and immovable property. But this only concerns property situated in Belgian territory. If these are held in France, the tax will be governed by the Franco-Belgian tax treaty on capital gains.
Interesting donation rights
In Belgium, the transfer of wealth, particularly movable property, is encouraged by the government, and thus benefits from a reduction in the right of donation. Donation fees are fixed in Belgium, a maximum 7% for donations to third parties, if it amounts to 60% in France!
With respect to inheritance taxes, this may vary depending on the region. But the rights are more advantageous in a direct line. Otherwise, it could even be more important than in France in some cases. In addition, the Belgian income tax would also be higher than in France, with a marginal margin of 50% against 45% in France, in addition to the local tax called “communal cents”.