The new capital gains tax in a nutshell

A schematic overview of the main points is set out below. We are organising an exclusive webinar for our clients, during which we will provide a detailed explanation of the new capital gains tax. This interactive online seminar will provide a detailed overview of the legislation, as well as an opportunity to ask our experts questions directly. This will allow you to be fully informed about all the relevant details and to prepare appropriately for the impact on your personal or business situation.

Scope

Up to 31 December 2025, capital gains on shares and other financial assets realised as part of the normal management of private wealth were exempt from personal income tax. That is now changing. The new law applies to certain types of capital gains that have accrued since 1 January 2026.

Who does the law apply to?

• It covers individuals and non-commercial legal entities (such as non-profit organisations).
• The new rules do not apply to:
  • companies
  • individuals who are not Belgian residents
  • non-profit associations and foundations that are authorised to receive tax-deductible donations
    
    

Which financial assets are affected?

• Shares (listed and unlisted), bonds, money market instruments, derivatives (futures, options and others), ETFs, etc.
• Foreign coins and gold (but silver is not affected)
• Cryptocurrencies.
• Certain life insurance policies (branches 21, 23 and 44), excluding group insurance and pension savings insurance.

In the event of a sale, surrender or relocation abroad

• The law applies to capital gains realised on the sale of financial assets
  • Gifts and inheritances are not covered
    
    
• In the case of life insurance policies, surrender or settlement during the policyholder’s lifetime are affected
  
  
• If you emigrate abroad, the unrealised capital gain is made permanent and becomes payable upon sale within two years of emigration.
  
  

Timing: capital gains as of 1 January 2026

• Capital gains tax applies only to capital gains accrued from 1 January 2026 onwards
• “Historical” capital gains, i.e. the capital gains accumulated up to 31 December 2025, are unaffected.
  
  

Rates - exemptions

The distinction between speculation or abnormal management and normal management of private assets remains.

Under the new regime, capital gains realised as a result of speculation or the abnormal management of private assets are still taxable as miscellaneous income at a rate of 33%. According to the tax authorities, abnormal or speculative management can be inferred from very frequent buying and selling, taking unreasonable risks to acquire financial assets, the intention to make a quick profit in the short term, and so on.

What is new is that capital gains realised in the context of normal management of private wealth – which are currently tax-exempt – will now become taxable.

There are three regimes: one general regime and two specific regimes.

I. General regime

• This is the generally applicable regime
• Rate: 10% of the realised capital gain
• Exemption: an annual exemption for the first €10,000 of capital gains. If you do not make use of the exemption in a given year, you can carry forward up to €1,000 per year for a maximum of five years. The maximum exemption after five years is therefore €15,000
• Principle applicable to banking products or investment-linked insurance policies: deduction at source:
  • The bank or insurance company automatically deducts 10% withholding tax on all realised capital gains and pays this to the tax authorities
  • You do not need to declare the realised capital gain on your income tax return. That means you have less administrative work to do
  • You will receive a statement from the bank and insurance company detailing all your realised capital gains and losses during the past year
  • If you wish to claim the exemption or offset capital losses, you must submit this claim yourself via your personal income tax return. As a result, it can take up to two years before you receive a refund of the excess tax withheld
  • Withholding tax at source is only applicable to capital gains in cases where the bank or insurance company has actively intervened. For example, people trading in cryptocurrencies or physical gold will need to declare the capital gains themselves (see “opt-out” below)
    
    
• Opt-out (self-declaration)
  • You are required to declare the realised capital gain on your personal income tax return
  • You must include any application for exemption and any offset capital losses on your personal income tax return. That means you will only pay the tax actually due
  • For banking and insurance products, you must sign a document and give it to the bank or insurance company to ensure that they do not deduct tax at source. These institutions will inform the tax authorities of the opt-out and provide them with an annual statement of the realised capital gains.

II. “Significant interest” regime

• Specific regime rules for shareholders who hold at least 20% of the voting rights in a company and sell shares in that company
• This regime is characterised by (more favourable) progressive rates and a higher allowance (€1,000,000) on the sale of these shares
• You are required to declare the realised capital gain yourself on your personal income tax return.                   

III. Internal capital gains regime

• A specific regime that applies to capital gains realised through the sale of shares in an owned company to a company controlled by the transferor (whether or not this involves family members up to the second degree of relationship)
• A tax charge of 33% is payable on the realised capital gain and there are no exemptions
• You are required to declare the realised capital gain yourself on your personal income tax return

Summary overview

How is the capital gain calculated?

For financial assets other than life insurance policies

• The capital gain is the positive difference between the sale price (i.e. the amount received for the financial assets sold) and the acquisition cost (see below)
• Acquisition cost =
  • Last share price on 31 December 2025
  • Various valuation methods exist for unlisted shares, and you may use the highest valuation:
    • The value as independently determined in an agreement in 2025
    • The value as independently determined on the basis of a sale, incorporation or capital increase in 2025
    • Fixed statutory valuation: equity + (4 × EBITDA) for the last financial year ending before 1 January 2026
    • The law provides the option of having the shares valued by an auditor or a certified accountant until 31 December 2027 at the latest
      
      
• For transfers up to and including 31 December 2030, the purchase price may be treated as the acquisition cost if it is higher than the value as at 31 December 2025
• Specific valuation rules apply to share options or shares acquired at a discount.

For life insurance policies

• For contracts entered into on or after 1 January 2026:
  • the positive difference between the lump sum paid out and the premiums paid
    
    
• For contracts concluded before 1 January 2026:
  • the positive difference between the lump sum paid out and the reserve as at 31 December 2025
  • in the event of surrender or settlement during the policyholder’s lifetime up to 31 December 2030, the amount of premiums paid may be retained if the total exceeds the amount of the reserve as at 31 December 2025.
    
    

What about losses?

Capital losses may be offset against capital gains within the same tax period and within the same category of financial assets.

Planning

The new capital gains tax adds yet another layer to Belgium’s already extensive and complex tax system. The new tax has turned out to be a complex system, comprising a large number of exemptions and special regimes.

Contact

Would you like to know more or do you need specialised advice? Please reach out to one of our experts. You can also register for our dutch webinar, in which we will take a closer look at the new capital gains tax and its impact on wealth planning. During the webinar, we will answer your questions and provide practical tips on the best approach.