New Belgian Capital Gains Tax
Principle
The Belgian government agreed to introduce, as from January 1, 2026, a 10% tax on capital gains realized by Belgian tax residents on certain financial assets (shares, crypto-assets, foreign currencies, insurance contracts, etc.) within the normal management of someone's assets.
Each taxpayer is entitled to an annual exemption of €10.000
(indexed amount) per year.
If you do not make use of this exemption, it will increase by €1.000 each year,
up to a maximum of €15.000. Needless to say that this will result in an administrative
burden for the taxpayers.
Capital gains realized outside the normal management of someone's assets will remain subject to a 33% taxation (as these are considered as speculative activities).
Historic capital gains
Capital gains accrued prior to the introduction of the new rules will remain untaxed. For sales taking place on or after 1 January 2026, the notional acquisition value will be deemed to equal the fair market value of the asset as of 31 December 2025.
For example:
- An individual has been a resident for Belgian tax purposes since 2022.
- He owns shares in Company A, acquired in 2016 for €200, which have a market value of €500 on 31 January 2026.
- The shares are sold in 2028 for €560.
In this case, the taxable gain is calculated as follows: €560 (sale price) – €500 (value on 31/12/2025) = €60.
Exception: if the original purchase price of the asset exceeds its market value on 31 December 2025, the taxpayer may use that purchase price as the acquisition value when determining the taxable capital gain. This treatment will be available only for sales taking place between 1 January 2026 and 31 December 2030.
Capital losses
Losses incurred on financial assets subject to the tax can be deducted from taxable capital gains, as long as they involve the same asset category and arise within the same tax year.
Significant shareholdings
For significant shareholdings a special regime applies whereby, from a participation of 20% or more, a capital gains exemption of €1 million is granted. For capital gains between €1 million and €10 million, reduced rates apply. The general rate of 10% only applies to capital gains exceeding €10 million.
How to pay the tax?
You can choose between two methods for handling capital gains tax on your investments.
1) Withholding tax (automatic deduction)
The Belgian financial institution will automatically withhold a 10% tax on capital gains realized upon the sale of financial instruments. The withheld amount will be remitted to the tax authorities on an anonymous basis.
The legislation also provides for an annual exemption of EUR 10,000 per taxpayer. If you wish to benefit from this exemption, you may claim it through your personal income tax return. The financial institution will provide you with a summary statement for this purpose.
2) Opt-out
You may instruct the financial institution not to apply the withholding tax. In that case, they will report both your choice and the capital gains realized on the sale of your financial instruments to the tax authorities.
The financial institution will provide you with an overview of the realized capital gains, after which you will be responsible for declaring these amounts yourself in your personal income tax return.
Non residents
The capital gains tax is not applicable to non residents.