Capital gains as of January 2026
The new law targets capital gains realised on financial assets as of 1 January 2026. Capital gains accrued up to 31 December 2025 – so-called historic capital gains – are excluded from this new tax.
To whom does the law apply?
The law applies to natural persons and non-commercial legal entities, such as non-profit organisations. Capital gains realised by (commercial) companies are already subject to corporate income tax – sometimes with exemptions under certain conditions – and are therefore not affected by this new measure.
Which financial assets are covered?
The capital gains tax will apply not only to the sale of financial instruments such as shares, bonds, mutual funds, and derivatives, but also to the sale of crypto assets, gold, and foreign currency. Certain life insurance policies are also affected, although group insurance and pension savings insurance are excluded. (These types of contracts are already subject to a separate tax regime.)
On sale
To be taxable, capital gains must be realised as a result of a “transfer for valuable consideration”. In other words, a sale of financial assets will trigger capital gains tax.
In contrast, gifts, transfers upon death, undistributed property, and contributions to a matrimonial community of property or the “TIGV” arrangement fall outside the scope of the law.
In the context of wealth planning, this may lead to unexpected situations. For example, anyone donating financial assets – such as shares in a family business – should bear in mind that if the recipient later sells those assets, they will be liable for capital gains tax on the gains accrued by the donor between 1 January 2026 and the date of the donation. This may lead to discrepancies where, for instance, one child receives shares and the other an (equivalent) sum of money. A thorough valuation of the shares will therefore be essential to help avoid disputes between children or heirs.
On payment of a life insurance policy
Payouts from savings-based life insurance policies (TAK 21 and TAK 26) and investment-linked insurance policies (TAK 23) also fall within the scope of the new law – provided the payout occurs during the policyholder’s lifetime and is not already taxed as movable or professional income. Note, however, that distributions following a death will not trigger capital gains tax.
Moving abroad
To prevent taxpayers from avoiding capital gains tax by emigrating and then cashing in capital gains abroad, the legislator has introduced a specific anti-abuse provision. Individuals who move abroad will be deemed to realise the latent capital gains on their financial assets at the time of emigration. In such cases, a notional capital gain is calculated, and tax becomes due. However, payment of the tax may be deferred – subject to certain conditions that allow Belgium to continue monitoring the taxpayer.
The notional capital gain will ultimately remain untaxed if the taxpayer relocates to a country within the European Union (EU), the European Economic Area (EEA), or a country that has a double taxation agreement with Belgium which includes provisions for information exchange and mutual assistance in tax recovery – and provided the taxpayer does not sell the assets within two years after emigration.
Rates
The new law introduces differentiated tax treatment for various situations.
Speculation or abnormal management
Until now, capital gains realised as a result of speculation or the abnormal management of private assets have been taxed as miscellaneous income at a rate of 33%. This will remain unchanged under the new law, which can be seen as a missed opportunity. Legal certainty would have been improved if the legislator had chosen to subject all capital gains on financial assets solely to the new tax.
By retaining the criteria of speculation and normal management of private assets, the law continues to leave room for ambiguity – and, as a result, for potential disputes with the tax authorities.
Normal management
The key change is that capital gains realised in the context of normal management of private wealth – which are currently tax-exempt – will now become taxable. The standard rate is 10%, but the law also provides for two specific regimes:
Shareholders with a substantial or significant stake in a company (as will typically be the case in family-owned businesses) will be taxed at different rates. A separate regime also applies to individuals who sell shares in their own company to another company they control – thus generating an “internal” capital gain.
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General regime: 10%
Capital gains on investments in financial assets are taxed at the standard rate of 10%.
To provide some relief for small investors, an annual exemption of EUR 10,000 in realised capital gains is introduced, resulting in a potential tax saving of EUR 1,000. If this exemption is not fully used in a given year, the unused portion of the first EUR 1,000 tranche can be carried forward for up to five years, with a cumulative cap of EUR 15,000. Example: If you realise a capital gain of EUR 900 in a given year, the entire gain is exempt, and EUR 100 of unused exemption can be carried forward to the next year.
Exemption amounts apply per taxpayer, not per family. For couples married under a community of property regime, the exemption amounts are doubled if the capital gain concerns jointly owned assets.
2. Ignificant interest: progressive rates
Specifically, shareholders holding at least 20% of the rights in the company whose shares are being transferred are subject to a special regime with progressive rates and a higher exemption. In the context of family partnerships, the transferor (the seller of the shares) will usually hold more than 20% of the rights.
On sale, the realised capital gain will be taxed as follows
- Exemption on the first EUR 1,000,000 of capital gains. This is a maximum amount over a five-year period;
- Progressive rates per bracket:
- From EUR 1,000,000 to EUR 2,500,000: 1.25%;
- From EUR 2,500,000 to EUR 5,000,000: 2.50%;
- From EUR 5,000,000 to EUR 10,000,000: 5%;
- Above EUR 10,000,000: 10%.
Note: Earlier preliminary drafts of the law assessed shareholding at the family level, making it easier to reach the 20% threshold. This principle did not survive the final negotiations. Shareholding is now assessed at the individual level of the transferor.
3. Internal capital gains: 33%
In the specific case where shares in a proprietary company are sold to a company controlled by the transferor (with or without relatives up to the second degree), the realised capital gain is taxed at 33%. This is already the case today, even when the sale does not fall within the scope of “normal management”.
Withholding tax
The tax is, in principle, withheld at source by the bank or insurer. However, you may choose to opt out, in which case the financial institution will not withhold the capital gains tax at source, and you will be required to declare all capital gains in your tax return.
Those who realise a capital gain through a foreign bank or outside the banking circuit (such as through crypto investments or the sale of a substantial interest) must, in any case, handle the correct reporting in their tax return themselves.
How is added value calculated?
The capital gain is the positive difference between the sale price (i.e. the amount received for the transferred financial assets) and the acquisition value.
Specific rules have been laid down to determine this acquisition value. If the securities are listed, the closing share value on 31/12/2025 will be used. If the securities are unlisted, several valuation options are available, including the possibility of having the value assessed by an auditor or certified accountant. It is therefore advisable to have your company evaluated in advance so you can select the most beneficial option.
The minister has confirmed that it is permitted to choose the most favourable valuation.
In addition, if the historical acquisition value is higher than the value on 31/12/2025, you may continue to use that historical value as your acquisition value for the next five years. Suppose you bought shares in 2023 for EUR 100. On 31/12/2025, their value is EUR 50. You sell them in 2028 for EUR 120. In that case, the taxable capital gain would be EUR 20 rather than EUR 70.
For stock options or shares acquired free of charge or at a reduced price, the law provides for specific valuation rules.
And what about losses?
Capital losses can be deducted within the same tax year and within the same category of financial assets. This means, for example, that a loss on an insurance product may be offset against a gain on a banking product – provided both arise in the same taxable period. However, such losses cannot be offset against a capital gain realised on the sale of a substantial interest in a company.
Planning
The new capital gains tax adds yet another layer to Belgium’s already extensive and complex tax system. Although the law is still in preparation and has not yet been approved by the House of Representatives, it is already clear that it will be complex, with numerous exceptions and special regimes.
What is also certain is that the new law is likely to impact wealth planning. We will continue to monitor developments closely on your behalf.
Contact
Would you like to know more or need specialised advice? Please reach out to one of our experts.
