Article 1, 1° of the C . succ . (art. 2.7.3.1.1 C.F.F.) provides that an inheritance tax is established on the value, after deduction of debts, of everything receivedin the estate of an inhabitant of the kingdom(natural person). Article 15 of the C . succ . (art. 2.7.3.2.1 C.F.F.) also specifies that the right of succession is due on the universality of the goods(in whatever place they are) belonging to the deceased.
It could not be clearer. The term “all that is received”, by “universality of property”, means in particular works of art, without any particular criterion of distinction with respect to the mass of other property received in the estate of the deceased. Works of art are part of this universe of goods and will therefore be subject to the same tax regime as all other goods, regardless of their nature, value, condition, possible administrative status, age, etc. The rates, deductions, reductions, allowances, deadlines, rules of evidence, etc. are identical, both with regard to the latter property and with regard to the works of art, according to the rules applicable to the estate as a whole.
Moreover, the above-mentioned legal expressions (“everything collected” and “universality of property”) do not refer exclusively to tangible personal property such as works of art. They also refer to intangible movable property (shares and registered shares of companies) but also to the rights attached to this tangible movable property (copyright, succession and exploitation rights for example). These rights must therefore be declared and evaluated in order to calculate the estate tax that will be due.
According to the general principle of taxation recalled above, inheritance tax is due on the value of “everything received” in the estate of an inhabitant of the kingdom, or on the “universality of the property” of this estate, wherever it may be found, as stated in article 15 of the Code of inheritance tax (in short: C. succ.), applicable in Walloon Region and Brussels Capital Region and (2.7.3.2.1 of the Flemish Tax Code “CFF”).
As a general rule, it does not matter whether the works of art are located in Belgium or abroad: they will in any case be taxable in Belgium, which could, moreover, give rise to cases of double taxation if the domestic tax legislation of the country (other than Belgium) in which the works of art are located also taxes these assets (based solely on the criterion of their location in its territory at the time of death, for example).
This general rule (laid down in art. 1-1° and 15 of the C. succ / 2.7.3.1.1 and 2.7.3.2.1 of the CFF) will only be disregarded if there is a double taxation treaty applicable to inheritance tax. Only two countries have concluded such an agreement with Belgium: France and Sweden.
Under Article 7 of the Franco-Belgian Convention, for example, tangible movable property (such as works of art) will be subject to inheritance tax in the State where it is actually located at the date of death. This is an exception to the principle of article 15 of the C. succ. (art. 2.7.3.2.1 C.F.F.). Thus, if we take the example of a person residing in Belgium at the time of his or her death but owning works of art that are, at the same time, in France (for example, in a building rented or owned by the deceased, or in a French museum, as a loan or deposit), these works of art will be subject to French estate tax.
In all other cases (works of art located on foreign territory, in a country other than France or Sweden), the right to tax will belong to Belgium, with the risk of double taxation noted above.
