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Pre-death gifts and regressive wealth transfer taxation: Evidence from Belgium

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  • Arthur Apostel

Abstract

The Belgian wealth transfer tax system stands out internationally by the large wedge between inheritance and gift tax rates, even shortly before death. I document an increased use of gifts at the top of the distribution, thereby rendering the wealth transfer tax system regressive at the very top despite highly progressive inheritance tax rates. I further analyze the wealth transfer distribution by gender, age, region, and education. The research is based on 2009-2022 administrative inheritance tax data with full population coverage, linked to gift tax microdata, census data, and national registry data. I compare the administrative transfer flows to HFCS survey data, finding substantial undercoverage in HFCS data. This finding suggests caution in interpreting survey-based estimates of wealth transfer flows.

Suggested Citation

  • Arthur Apostel, 2026. "Pre-death gifts and regressive wealth transfer taxation: Evidence from Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 26/1144, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:26/1144
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    References listed on IDEAS

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    1. Anthony B. Atkinson, 2018. "Wealth and inheritance in Britain from 1896 to the present," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 137-169, June.
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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • G5 - Financial Economics - - Household Finance
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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