New Belgian capital gains tax and exit tax on the way
June 2025 - The federal government is working to introduce a new tax on capital gains on financial assets, aimed at private investors and non-profit organisations.
This measure is part of a broader reform of the Belgian tax landscape and would take effect on 1 January 2026. In addition to this capital gains tax, there will also be a so-called ‘exit tax’ on cross-border transfers.
Taxation of capital gains: general principles
The planned solidarity contribution provides for a tax rate of 10 per cent on realised capital gains on financial assets. This will include an exemption for historical capital gains accrued before entry into force. Capital losses will be deductible within the same tax year, but cannot be carried forward to future years.
Financial assets include shares, bonds, derivatives, mutual funds, ETFs, crypto assets, monetary assets and certain insurance products. Commodities, pension funds and group insurance are excluded from the scope.
An exemption threshold of EUR 10,000 is provided to spare smaller investors. Capital gains on assets held for at least 10 years also remain exempt. Large holdings (at least 20 per cent) will be subject to an increased exemption of up to EUR 1 million and progressive taxation for capital gains above this amount, with rates of up to 10 per cent for amounts above EUR 10 million.
Exit tax on cross-border transfers
Unrealised capital gains will be taxed when a taxpayer moves its tax residence abroad or transfers financial assets to a non-Belgian beneficiary. This also applies to gifts or inheritances. This exit tax is part of the effort to limit tax avoidance when emigrating or transferring assets internationally.
Role of financial intermediaries
The tax will generally be levied via Belgian financial institutions, similar to the collection of withholding tax. Foreign intermediaries are also expected to face additional reporting obligations, increasing compliance pressure.
As compensation, the government intends to simplify or abolish the current complex regime for capital gains on investment funds. Accountants would do well to provide clients with timely information and analyse the impact on wealth planning.
