Belgium Introduces Capital Gains Tax on Financial Assets as from 1 January 2026

Belgium is set to enter a new era of taxation: a capital gains tax on financial assets will apply as from 1 January 2026. This marks a turning point in Belgian tax policy, as it brings into scope one of the last untaxed segments of individual wealth.

Under the proposed regime, the tax will apply to individuals as well as legal entities subject to the tax on legal entities (such as associations and foundations - certain entities eligible to receive tax-deductible donations would be exempt). It introduces a residual tax mechanism targeting miscellaneous income.

Importantly, capital gains that fall outside the “normal management of a private estate” (e.g. speculative transactions) will continue to be taxed as miscellaneous income at 33%, in line with the existing rules.

Covered financial assets

Assets (wherever they are held) fall within one of the following 4 categories:

1. Financial instruments: this category covers traditional instruments such as shares and bonds, but more broadly all securities and transferable securities, including derivative instruments, contracts and placements in collective investment schemes;

2. Insurance contracts: classes 21, 22 and 26 as well as 23 and 44 products;

3. Crypto-assets: include both crypto-currencies and other forms of digital representation of a value or right;

4. Currencies: any liquid financial asset, including investment gold.

Certain products remain exempt, such as second (group insurances) and third (pension savings) pillar pension products.

The so-called “Reynders tax” (article 19bis of the Belgian Income Tax Code ("ITC")), which applies to certain debt funds, will not be abolished and will coexist with the new capital gains tax. This may lead to overlapping taxation (30% on the interest component, 10% on the capital gain), thereby increasing compliance complexity.

Three-Tiered Taxation Framework

Following this reform, three distinct taxation scenarios can be identified depending on the nature of the realized capital gain and the type of financial asset involved.

1. Internal capital gains

Gains realized from disposals of shares or profit-sharing certificates to related parties – where the seller exercises direct or indirect control over the buyer (alone or with close relatives up to the second degree) – will be taxed at a flat rate of 33% (considered as capital gains resulting from "abnormal management of private estate"). Control refers to article 1:14 of the Code of Companies and Associations.

2. Substantial shareholding

Shareholders with a significant participation (i.e. at least 20%) will benefit from a EUR 1,000,000 exemption (this amount is considered as the maximum exempted amount every five years). Gains exceeding this threshold will be taxed at the following progressive rates:

• Between EUR 1,000,000 and EUR 2,500,000: 1.25%.

• Between EUR 2,500,000 and EUR 5,000,000: 2.25%.

  
• Between EUR 5,000,000 and EUR 10,000,000: 5%.

• Above EUR 10,000,000: 10%.

A 16.5% rate will apply if the sale is made to a non-EEA legal entity. Significant shareholding will be assessed individually, per shareholder, without considering shares held by family members overall.

3. General capital gains taxation

A 10% rate will apply to all other capital gains derived from covered financial assets (see below). An annual exemption will be granted on the first EUR 10,000 (indexed annually) provided the taxpayer reports the capital gains. Unused portions of the exemption may be carried forward up to EUR 1,000 per year, with a maximum of EUR 15,000.

The deduction of capital losses within a category is only available if the taxpayer reports all realized capital gains in the annual return.

Exemptions

Temporary exemptions include:

• Gains resulting from the mergers or demergers involving investment companies or funds; or
• Gains resulting from the transformation of a contractual investment funds into an investment company.

Permanent exemptions apply to:

• Gains on share contributions;
• Gains on assets benefiting from long-term savings tax reliefs; or
• Gains on assets already taxed as movable or professional income.

Valuation and Calculation

Capital gains will be calculated as the positive difference between the disposal price and the acquisition value. Gains realized before 1 January 2026 are excluded, making it necessary to establish the value of assets as of 31 December 2025 (capital losses relating to a period before 2026 are not tax deductible).

Valuation rules vary by asset type. Standard examples are outlined below:

• Listed financial assets: closing price on the last trading day of 2025.
• Non-listed financial assets: the highest of:
• The value agreed between independent parties during the company's incorporation or its latest capital increase in 2025;
• A contractual valuation formula, effective as of 1 January 2026;
• For shares: equity plus four times tax EBITDA from the last financial year ending before 1 January 2026;
• Alternatively, taxpayers may opt for a valuation by a non-statutory auditor or independent certified accountant, completed no later than 31 December 2026.
• Life insurance and capitalization contracts: the higher of total premiums paid or the inventory reserve on 31 December 2025.

Additional principles will apply:

• Capital losses will be deductible within the same year and asset category (but only if all capital gains are reported in the tax return);
  
• First in, first out, method applies when identical assets are acquired successively;
• Foreign currency must be converted to EUR using the exchange rate at acquisition and disposal;
• For share options and discounted shares, the acquisition value is the market value at exercise or acquisition, or the value of the option. when it becomes exercisable; and
• In case of emigration, the deemed sale price is the market value at departure; for immigration, the acquisition value is the market value upon arrival.

The tax authorities retain the right to challenge valuations performed by independent auditors or accountants, without a clearly defined statutory time limit. This creates uncertainty and highlights the importance of well-documented valuation reports.

Withholding obligations & Financial intermediaries

Capital gains other than internal capital gains and substantial shareholding will be subject to withholding taxes, which will be collected by Belgian financial intermediaries. Taxpayers may opt out of withholding and instead report the gains in their tax return. In such cases, intermediaries will be obliged to notify the tax authorities of related incomes.

The reform also introduces other reporting duties for financial intermediaries. Any entity or individual involved in structuring, promoting, executing, or advising on transactions that trigger internal capital gains or gains on substantial shareholdings must report the following to the tax authorities:

• Acquisition value
• Disposal price
• Identification data regarding the parties involved

This obligation applies to all intermediaries with a Belgian nexus, including residency, permanent establishment, incorporation, or professional registration in legal, tax, or consulting services.

The notification duty is modelled after the DAC 6 regime, although it primarily targets “promoters” rather than all service providers. Intermediaries bound by professional secrecy (e.g. lawyers) may be exempt from disclosure but must generally inform other intermediaries of their involvement.

Specific Exit Tax Regime

An exit taxation mechanism is also foreseen in the event of a transfer of residence to another country. However, automatic payment deferral is granted for relocations within the European Economic Area or to countries with a tax treaty that includes provisions for information exchange and mutual assistance in recovery.

Outside these jurisdictions, deferrals may still be requested, subject to adequate guarantees. The deferral will expire (i.e. no taxation) upon return to Belgium or after 24 months, unless assets are transferred earlier, in which case payment becomes immediately due.

This two-year limit is stricter than what was initially considered and may raise equality concerns, since a higher historical acquisition cost can only be invoked for disposals up to 31 December 2030.

Our vi​ew

The introduction of a capital gains tax on financial assets marks a turning point in Belgium’s tax policy—but not necessarily one of clarity or simplicity. While the measure aims to enhance fairness and broaden the tax base, its current design raises several concerns.

First, the articulation between this new regime and the recently introduced exit tax, applicable to shareholders in cases where a company transfers its tax residence, raises unresolved questions. As things stand, overlaps between the two systems cannot be ruled out, potentially leading to double taxation.

Second, the valuation methods are numerous, technically complex, and vary depending on the asset type—often without a clear rationale. This patchwork approach risks creating an administrative labyrinth for taxpayers and advisors alike. Moreover, valuations established by auditors or accountants remain open to challenge by the tax authorities without a defined time limit, adding uncertainty.

Third, several mechanisms appear impractical or overly burdensome. For example:

• The EUR 10,000 exemption will only be available to taxpayers who actively claim it, and provided that all capital gains realized are duly reported;
• The annual increase of the exemption requires tracking of unused exemptions over multiple years;
• Taxpayers will be required to value their own assets, and if they fail to do so, they may be taxed based on potentially inflated valuations imposed by the authorities;
• The deduction of capital losses is also conditional upon full disclosure of all gains in the tax return, which may reduce its practical usefulness.

In addition, the coexistence of the new regime with the Reynders tax (article 19bis ITC – with the current 33% regime) increases complexity. For certain investment funds, part of the gain will be taxed at 30% as interest, while the remaining part may fall under the 10% capital gains tax. This dual system will significantly raise compliance and reporting obligations.

The various formal requirements do not only increase the risk of error but also impose a significant compliance load on taxpayers, the tax administration, and financial intermediaries. In practice, navigating this regime will likely require the support of specialized advisors, particularly for taxpayers with diversified portfolios or cross-border elements.

Overall, the regime’s layered structure—combining flat rates, progressive brackets, exemptions—risks creating fragmentation and unpredictability for taxpayers.

As the law is set to take effect on 1 January 2026, taxpayers and stakeholders should begin preparing for its operational and compliance requirements. Nevertheless, the current version of the analyzed text does not constitute the final draft and may be amended or revised prior to formal approval.

How can we help?

Our dedicated Fieldfisher Belgium tax team combines expertise in both the legal and economic aspects of taxation. We assist businesses at all stages of their life cycle with contentious and non-contentious, direct and indirect tax matters. Regarding the future capital gains tax, our team is closely monitoring the legislative process and stands ready to provide tailored advice on the scope of the new regime, available legal remedies and strategic planning. Should you have any questions, please do not hesitate to contact our tax team.