Donation through a ‘simple company’

Since December 2020, donations of movable property in front of a Dutch notary no longer enjoy tax advantages.

To make indirect donations without having to pay gift tax, an alternative is to use a fiscally transparent Simple Company to be established through a private deed and which does not have legal personality.

Two variants exist:

1. Contribute assets without issuing new shares, creating an indirect donation in favor of other beneficiaries.
2. Contribute assets, and the issued shares are immediately registered in the name of other individuals (such as children).

This approach to indirect donation also requires the establishment of an additional pact with a certain date, and the donor must remain alive for 3 years (Brussels, Flanders) or 5 years (Wallonia) to avoid gift tax.

It is worth noting that the effectiveness of this method is not yet fully established in all regions of the country, despite two favorable advance decisions from the Dutch-speaking tax authorities.