Capital gains tax: what you need to know about inheritance and gifts

Since the start of 2026, capital gains tax has applied to financial assets. Anyone who sells securities, gold or crypto during their lifetime — or, for example, surrenders a branch 23 life insurance contract — pays 10 per cent tax on the realised gain, after deduction of an annual exemption of €10,000 per person.

A separate regime applies to shareholders in SMEs. Anyone who owns at least 20 per cent of the shares benefits, on disposal, from lower progressive rates on the capital gain and an exemption of up to €1 million.

When assets are gifted or inherited, the recipient does not pay for what they receive. ‘No capital gains tax is due on these transfers. But that does not mean the accrued gain disappears,’ says Dirk Denies, Senior Wealth Planner at ABN AMRO MeesPierson.

The donor’s or deceased person’s tax acquisition value simply carries over, along with the latent tax liability. ‘If the gifted or inherited assets are sold at a later date, the value on 1 January 2026 — or the later purchase price — is used as the basis for calculating the capital gain.’

A simple example illustrates how this works. Suppose you buy a share portfolio today for €100,000 and later gift it to your child when it is worth €120,000. If your child eventually sells the portfolio for €150,000, the tax is calculated on a capital gain of €50,000 rather than €30,000.

There is another point to consider where several heirs jointly inherit a share portfolio. ‘If, within three years of the death, they decide to divide the inherited securities account between them — thereby ending the joint ownership — this does not trigger capital gains tax. However, the original purchase price still carries over,’ Dirk explains.

Parents sometimes choose to make a gift while retaining usufruct. In practice, this means they keep the income from the portfolio, such as coupons and dividends, while the children receive bare ownership. Once the children become bare owners, they are also responsible for any capital gains tax.

This can be particularly relevant if an opt-out is chosen, meaning the tax is not withheld automatically by the bank but instead settled through the tax return. ‘In that case, the tax bill goes directly to the children, so they need to make sure they have enough liquidity,’ says Dirk.

Many entrepreneurs transfer shares in their SME to their children during their lifetime, often under a favourable regime. But once those shares are gifted, each child’s holding may fall below the 20 per cent threshold — and that can have important tax consequences.

For example, a parent with 50 per cent of the shares qualifies for the favourable regime on disposal. But if that holding is split equally between three children, each child ends up with only around 16.7 per cent. If they later dispose of the shares, the standard 10 per cent rate applies instead, along with the much lower exemption of €10,000.

‘Capital gains tax has a direct impact on estate planning. A well-considered approach, backed by specialist advice, can help you avoid tax pitfalls and pass on your wealth to the next generation in the most effective way possible,’ Dirk concludes.