Camille Van Vyve

17 Feb 2025

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Financial donation in Belgium: 3 ways to proceed

Financial donations are a common practice in Belgium, whether to transfer wealth or support loved ones. But how can you complete this process legally while optimizing tax implications? In this article, we explore three methods to help you choose the best solution for your situation.

Why register a financial donation?

Registering a financial donation in Belgium offers several advantages:

• Legal compliance: registering a donation prevents the risk of it being reclassified as an inheritance, which could result in higher taxes.
• Legal proof: a registered donation serves as irrefutable proof in case of disputes between the donor and the beneficiary.
• Tax benefits: although registration incurs donation taxes, these are often lower than inheritance taxes.

There are three main options for making and, if necessary, registering a financial donation in Belgium:

1. Registering a donation via a notary
2. Self-registering via MyMinFin.be.
3. Making a donation without a notary and without registration

1. Registering a donation via a notary

Using a notary is the most formal and secure method for registering a donation. Here’s what this approach entails.

Steps to follow

1. Schedule an appointment with a notary: both the donor and the beneficiary meet with a notary to discuss the terms of the donation.
2. Drafting and registering the notarized deed: the notary drafts an official document to formalize the donation. Once signed, the deed is automatically registered with the tax authorities, and the donation tax is paid immediately.
3. Paying the donation tax: the tax rate depends on the relationship between the donor and the beneficiary as well as their region of residence (Flanders, Brussels, or Wallonia).

Advantages

• Maximum legal security: the notarized deed serves as indisputable proof.
• Personalized guidance: the notary helps optimize taxes and tailor clauses.
• Full compliance: ensures all legal obligations are met.

Disadvantages

• Higher cost: notary fees, in addition to donation taxes, make this a more expensive option.
• Slower process: drafting the deed and completing administrative procedures can take time.

2. Registering a donation via MyMinFin.be

A middle-ground option is to self-register your donation via MyMinFin.be, the Belgian tax portal. This is more cost-effective than using a notary while still providing legal and tax security.

Steps to follow

1. Make a bank transfer: transfer the funds to the beneficiary, without any specific communication.
2. Prepare necessary documents: draft a simple document outlining the donation’s details (amount, parties involved, conditions). This pacte adjoint is required for registration.
3. Register on MyMinFin.be

• Log in to MyMinFin.be using your eID, Itsme, or another authentication method.
• Upload the required documents (pacte adjoint or other proof) under the donation registration section.
• Calculate and pay the applicable donation tax based on your region. Once the payment is processed, you will receive proof of registration.

Advantages

• Lower cost: you save on notary fees while only paying the required donation tax.
• Legal security: a donation registered via MyMinFin.be is legally recognized and cannot be contested.
• Flexibility and speed: offers the autonomy of a manual donation with the fiscal security of an official registration.

Disadvantages

• Administrative responsibility: you must handle the process yourself and ensure document accuracy.
• Knowledge required: without a notary’s advice, understanding tax and estate implications can be more complex.

3. Making a donation without a notary and without registration

An alternative is to make a donation without involving a notary or officially registering the transaction. This is often called a manual donation or bank donation.

Steps to follow

1. Transfer of funds : the donor makes a bank transfer to the beneficiary, without any specific communication (otherwise donation tax could be due...!).
2. Keeping records : while not mandatory, drafting a supporting document called a pacte adjoint is recommended. This outlines the donation terms (e.g., any conditions or usufruct reservations). Easyvest provides you with a free pacte adjoint model.
3. Observing tax deadlines : if the donation is not registered, the donor must survive at least three years after the donation (five years in Flanders and Wallonia) to avoid inheritance taxation.

Advantages

• No immediate cost: no registration tax as long as the donation remains unregistered
• Simplicity: no administrative or notarial formalities.
• Speed: the entire process can be done in minutes.

Disadvantages

• Tax risk in case of death: if the donor dies within three (or five) years, the donation will be subject to inheritance tax, which is usually higher than donation tax.
• Limited legal security: without registration, the donation could be challenged.

How to proceed with the donation of an investment portfolio?

Donating an investment portfolio (stocks, bonds, ETFs, etc.) is not much more complicated than donating cash, except for one essential step: calculating and documenting the portfolio’s value at the time of the donation. At Easyvest, we recommend valuing the donated assets based on their closing price on the day before the donation. Whether the donation is registered or not, this valuation is necessary to later justify the value of the gift.

Steps to follow

1. Open an account in the name of the recipient(s).
2. Transfer the assets. Instruct your portfolio manager to transfer the specified securities (e.g., 100 shares of a particular fund).
3. Document the donation. Draft a document called a "pacte adjoint" (adjunct agreement) that includes at least the date of the donation, the identity and full contact details of the recipient(s), and the value of the transferred assets.
4. Register the donation or not. Like cash donations, an investment portfolio donation can be registered (via a notary or MyMinFin) or not. If registered, the applicable regional donation tax must be paid. If the donation is not registered, the donor must survive for at least 3 years after the donation (5 years in Flanders and Wallonia) to avoid inheritance tax.

Donation with Usufruct and bare ownership

It is common to donate an investment portfolio while retaining usufruct, allowing the donor to keep the returns while the recipient becomes the bare owner. This structure requires a notarial deed. In this case, the notary will assess the portfolio’s value, and the donation will be automatically registered, triggering the corresponding tax payment.

Comparing the three options

Tips for choosing the right method

1. Small or one-time donations: a manual donation without registration may suffice if tax deadlines are observed.
2. Large or complex donations: use a notary or MyMinFin.be to secure assets and avoid legal disputes.
3. Estate planning: if reducing inheritance tax is a priority, immediate registration (via a notary or MyMinFin.be) is recommended.

Easyvest: your partner for wealth transfer and investment

Each method has its pros and cons, and the best choice depends on your needs for legal security, cost, processing time, and tax implications. Specializing in ETF investments, Easyvest advises families on wealth transfer and structuring, whether personal or business-related. If you are considering making a donation, contact our wealth managers to explore the best solutions for transferring and investing your assets. We can also assist in drafting a pacte adjoint and registering your donation.

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