Valuations
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Advice & consultancyValuations
22 June 2023
Binding VLABEL Valuation for Inheritance Declarations
When submitting an inheritance declaration, inheritance tax must be paid, which partly depends on the value of the real estate in the estate. To avoid penalties, it is crucial to declare the property’s value accurately using a binding VLABEL valuation. A binding VLABEL valuation is performed by experts recognized by the Flemish Tax Administration (VLABEL). While you can attempt to estimate the value yourself, this carries significant risks that should be carefully considered.
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Read below to learn everything you need to know about a binding VLABEL valuation
What is a VLABEL valuation?
A VLABEL valuation is an appraisal of a deceased person’s real estate conducted either by an officer of the Flemish Tax Administration or by a recognized VLABEL appraiser.
The appraisers at CC Experts are fully recognized by the Flemish Tax Administration, so you can rely on us for a binding VLABEL valuation. A qualified real estate expert visits the property and prepares a detailed, binding VLABEL valuation
When do you need a VLABEL valuation?
Beyond calculating inheritance tax for an estate declaration, a recognized VLABEL valuation is recommended in several situations:
- Valuing real estate held within a company
- Valuing property for a gift or donation
- Independent and mutually agreed valuation in the case of divorce or property division (EOT)
Is a VLABEL valuation mandatory for an inheritance declaration?
Heirs are not required to obtain a binding VLABEL valuation. You may prepare your own estimate of a property’s value for the estate declaration. In estates with multiple properties, each property can be valued separately. However, property valuation for inheritance purposes is complex. While online tools and software exist for self-assessment, their reliability is limited. The heir bears full responsibility and risk for the declared value. If the valuation is too low, there is a risk of an underestimation, which could result in penalties from the Flemish Tax Administration. If the valuation is too high, the heir may pay more inheritance tax than necessary.
Who can perform a VLABEL valuation?
Free binding VLABEL valuation by a tax officer
Since April 2019, heirs in Flanders can request a free binding VLABEL valuation. This valuation is generated by a computer program and becomes irrevocably binding once validated by a Flemish Tax Administration officer.
In many cases, this valuation does not involve a site visit. Because the program cannot account for property-specific details—such as insulation, window glazing, or electrical compliance—there is a risk that the valuation overestimates the property’s value, potentially resulting in higher inheritance tax than necessary.
VLABEL valuation by a recognized expert appraiser
A VLABEL valuation can also be carried out by a recognized appraiser, such as a licensed surveyor. This expert provides an objective, independent, and reliable assessment based on detailed knowledge of the local real estate market. Being independent, the appraiser has no conflicts of interest, ensuring that the valuation is reliable and impartial.
When preparing a VLABEL valuation for an inheritance declaration, the recognized appraiser considers all relevant factors, including location, property size and layout, condition of the building, any improvements or renovations, existing charges or restrictions on the property.
Benefits of a VLABEL valuation by a recognized expert?
Binding
A VLABEL valuation conducted by a recognized expert appraiser is binding. This means that the Flemish Tax Administration accepts the value determined by the appraiser, leaving no room for dispute regarding the property’s value.
Fast and Efficient
Inheritance declarations must be submitted within four months of the date of death, so it’s important to request your valuation in a timely manner. A VLABEL valuation can be arranged quickly, giving you ample time to submit your tax declarations within the legal deadlines.
Comprehensive and Detailed Report
A VLABEL valuation report is prepared in accordance with legal form and quality requirements. A valuation prepared by CC Experts typically includes:
- An introduction
- A description of the property being valued (e.g., location, land, construction, rights, photo documentation, and layout sketches)
- Justification and explanation of the valuation method used
- A description and analysis of comparable properties
- A detailed calculation of the property value with explanations
- A conclusion, including a SWOT analysis and estimated results
- Signature by the expert appraiser
Initially, a VLABEL valuation is used for the inheritance declaration, but because of its objective, impartial, and thoroughly documented methodology, the report is also highly suitable for fairly distributing the estate among heirs.
CC Experts: Recognized by the Flemish Tax Administration
Our expert appraisers are recognized by the Flemish Tax Administration, so you can rely on us for a VLABEL valuation.
Order your VLABEL valuation online now.
When a property is declared according to the expert valuation and the report is attached to the tax declaration, the Flemish Tax Administration accepts the appraisal. This ensures no risk of underestimation or penalties, even if the property is later sold for a higher price than the estimated value.
How much does a VLABEL valuation cost?
The cost of a VLABEL valuation depends on several factors, including the location, property type, size, and complexity of the case. For a tailored quote, contact our experts.
Order a VLABEL valuation
Our valuation experts are recognised by the Flemish Tax Administration, so you can come to us for a VLABEL valuation.