Target group
The new regime applies to individuals (personal income tax) and non-profit entities (legal entities tax), such as non-for-profit organisations (vzw’s/asbl) and private foundations. However, there is an exclusion for legal persons that can receive donations eligible for a tax reduction.
Qualifying assets
The new capital gains tax applies to capital gains realised outside professional activities upon the transfer for consideration of financial assets falling under normal management of private assets.
In addition, two events are subject to the new capital gains tax, even though they are not realised for consideration:
- The liquidation during lifetime of capitals and surrender values relating to life insurance contracts and capitalisation transactions.
- The transfer of the taxpayer’s residence abroad (so-called ‘exit tax’).
A transfer for no consideration of financial assets to a non-resident taxpayer (e.g. via donation) is not in scope of the new capital gains tax, unless the general anti-abuse clause can be applied.
The following transfers are not in scope because they do not take place for consideration:
- Transfers of ownership upon death: by inheritance, will or contractual inheritance.
Financial assets comprise 4 categories:
- Financial instruments (shares, bonds, ETFs, investment funds, money market instruments and all kinds of derivatives (options, futures, swaps…))
- Certain insurance contracts (branches 21, 23 and 26)
- Crypto assets as defined per EU Regulation 2023/1114, including e-money tokens, asset-referenced tokens, utility tokens, and NFTs used for payment or investment purposes
- Currency (including gold held as investment)
Qualifying transfers
The regime applies to three categories of transfers:
- Internal capital gains upon transfer of shares or profit shares to a company that the taxpayer directly or indirectly controls himself or together with his family.
- Capital gains on shares if the transferor directly holds at least 20% of the rights in that company (substantial interest) and other than those covered by category 1.
- Capital gains on financial assets not covered by category 1 or 2 (the general regime).
Exemptions
The following capital gains are exempt from the new regime:
- Capital gains on contribution of shares if they do not fall within the scope of Article 95 of the Income Tax Code 1992 (ITC92) (a specific exemption covering reorganisations following the EU Merger Directive). The application of this exemption results in the acquisition value of the shares obtained in exchange for the contribution corresponding to the acquisition value of the contributed shares (roll-over).
- Capital gains insofar as they are taxable as professional income.
- Capital gains insofar as they are taxable as movable income (e.g. upon redemption of own shares). Investment funds holding more than 10% fixed-income securities such as bonds or money market instruments currently fall under the Reynders tax. This 30% tax applies to capital gains realised by the fund on these fixed-income investments. To avoid double taxation upon introduction of the new capital gains tax, the latter will only apply to capital gains not yet taxed by the Reynders tax.
- Pension savings (third pillar) and supplementary pensions (second pillar) falling under pension taxation.
- Capital gains on financial assets giving rise to a tax reduction for long-term savings.
- Capital gains realised on termination of joint ownership that results within three years from a death, divorce, end of legal cohabitation or end of de facto cohabitation.
- The draft aims to avoid overlap with the Cayman tax. Account is taken of the requalification as movable income resulting from Article 21, 1st paragraph, 12°, in conjunction with Article 21, 2nd paragraph, ITC92, and the intention to avoid such income is being caught by the new capital gains tax.
Normal management of private estate
Only capital gains realised within the normal management of private assets are subject to the new capital gains tax. The existing rules and rates regarding speculation and abnormal management of private assets remain unchanged (apart from a newly introduced annual exemption of EUR 2,000).
Taxable base
The taxable base is the positive difference between the sale price and the ‘acquisition value’. The acquisition value is the value of the financial assets on 31 December 2025 in the hands of the taxpayer or his legal predecessor. This provides a ‘step-up’: historical capital gains built up before 1 January 2026 are exempt; only capital gains built up from 2026 are taxable. This also applies to shares received historically under a ‘roll over’ regime (merges, demergers, ‘fusion à l’anglalse’ operations) following (the revised) Article 95 ITC92.
The FIFO principle (first in, first out) applies to staggered purchases of identical financial assets from 2026. If you invest via a fund savings plan with monthly contributions in a fund, or buy the same share at different times, then it is important to know which purchase price applies when selling part of these shares. The capital gain is calculated on the basis of the purchase price of these first purchased shares.
The following rules determine the value of the financial assets on 31 December 2025:
- For financial assets listed on a regulated market or any other public, regularly operating market: the closing price on 31 December 2025.
- For non-listed financial assets: 3 valuation methods, of which the method yielding the highest value is retained:
- The value used in a transfer between independent parties between 1 January 2025 and 31 December 2025.
- The value according to a valuation formula fixed in an ongoing contract;
- Specifically for shares: equity, plus 4x EBITDA. As an exception to that rule, the taxpayer is given the option to prove the value himself with a report prepared by a company auditor or accountant, neither of whom may be the usual professional practitioner. Such a valuation report must be prepared by the end of 2027 at the latest.
Upon sale of shares acquired following the exercise of stock options qualifying under the stock option law, the actual market value of the share at exercise is taken as the purchase price instead of the exercise price. For example: if you can buy shares for EUR 20 while the market value is EUR 35 at exercise, the purchase price for capital gains tax is set at EUR 35. The same rule applies for non-qualifying stock options taxable at exercise.
For shares acquired following the exercise of ordinary options not taxed as professional income, the exercise price is taken as the acquisition value. This means that if you have the right to buy shares for EUR 20 while the market value is EUR 35, the purchase price for capital gains tax is EUR 20.
For tradeable options, the acquisition value can be determined as the higher of the actual value when the options become tradeable or the taxable value under the stock option law. For example: if you receive a tradeable bank warrant from your employer at EUR 10, which is worth EUR 10.5 when it becomes tradeable and you sell the option for EUR 11, capital gains tax will be due on EUR 0.5.
For persons moving to Belgium after 1 January 2026, a special regime applies. They receive a step-up at the time they enter Belgium. As a result, only the capital gain built up during the Belgian period will be taxable. However, this regime does not apply if one returns to Belgium within two years after leaving Belgium. In that case, the acquisition value of the original entry will be taken into account, to be increased with the amount which has been subject to the foreign tax of a similar nature to the capital gains tax (if any).
Realised losses can be deducted from realised capital gains. This is only possible if the loss was realised by the same person, in the same year and in the same category of taxable financial assets (i.e. in one of the three categories mentioned).
For assets acquired before 1 January 2026, the loss is calculated as the negative difference between the price received and the value on 31 December 2025.
In principle, no account is taken of historical losses. However, an exception applies to transfers taking place until 31 December 2030. For realised capital gains during the first five years after the entry into force, the taxpayer may prove the historical acquisition value (if higher than the value on 31 December 2025). However, if it concerns staggered purchases of identical financial assets, the purchase price will be calculated as the weighted average of all purchases made before 31 December 2025.
Tax rates
Following rates apply when realising (non-professional) capital gains on financial assets within the normal management of private assets:
- Substantial interest (when the taxpayer holds at least 20% of the shares directly upon realisation):
- < EUR 1,000,000: exempt
- EUR 1,000,000 – EUR 2,500,000: 1.25%
- EUR 2,500,000 – EUR 5,000,000: 2.5%
- EUR 5,000,000 – EUR 10,000,000: 5%
- > EUR 10,000,000: 10%
The full amount of the exemption (<EUR 1,000,000) can only be used once every five years. The sale of a substantial interest to a non-EEA company continues to be taxed at 16.5%, but also with application of the EUR 1,000,000 exemption.
- Internal capital gains (capital gains on sale of shares or profit shares to a company that the taxpayer himself or together with his family directly or indirectly controls): a rate of 33%.
- General regime: capital gains are taxed at 10%
- With exemption of the first annual tranche of EUR 10,000 (to be indexed annually) per taxpayer.
- Anyone who does not use the exemption can carry it forward by EUR 1,000 per year for a maximum of five years, thus enjoying a maximum exemption of EUR 15,000 (for married or legally cohabiting couples, the exemption would amount to EUR 30,000).
Levy
Under the general regime, the capital gains tax is in principle levied via a movable withholding tax of 10%, withheld by the intermediary established in Belgium. This withholding tax is final (no additional taxation). The movable withholding obligation applies exclusively to capital gains on financial instruments and certain insurance contracts.
The Belgian intermediary does not take into account deductible losses, exemptions or a higher acquisition value, so such kind of corrections must always be made via the income tax return. When no Belgian intermediary is involved (e.g. securities portfolio held with a foreign bank), the taxpayer must declare the income himself in the personal income tax return (or legal entities income tax return).
The taxpayer may opt not to subject the realised capital gains to the movable withholding tax (so-called ‘opt-out’). The taxpayer must explicitly opt for this, together with all other holders. In case of opt-out, the financial institution will provide information about the capital gains to the tax authorities.
For capital gains under the internal capital gains regime or the substantial interest regime, collection always takes place via the income tax return of the taxpayer.
Exit taxation
Together with the capital gains tax, a new exit tax is introduced if the tax residence of a qualifying Belgian taxpayer is transferred abroad.
The practical implementation of the exit tax differs depending on the country of destination:
- Automatic deferral: A deferral of payment will automatically be granted for moves to EEA countries or to a treaty country (with which Belgium has an agreement to avoid double taxation that provides for exchange of information and mutual assistance in recovery). Conditions:
- No transfer of the financial assets for consideration or making them subject to real security agreements within 2 years after move.
- The taxpayer’s residence must remain in the above-mentioned states.
- Optional deferral: For other countries, upon request of the taxpayer, deferral is also granted provided the taxpayer provides sufficient security for payment of the amount due (bank guarantee, wire payment to “Desposito-en Consignatiekas/Caisse des Dépots et Consignations” or pledge). The continuation of the deferral of payment is subject to the condition that the taxpayer annually provides a certificate proving that he continues to meet the conditions for deferral.
The tax due is waived in both situations if there is no sale or a re-entry into Belgium within 2 years following departure from Belgium.
In case of split ownership, only the bare owner is regarded as the taxpayer. Emigration of the usufructuary abroad therefore does not lead to realisation of a capital gain in the hands of the bare owner.
Reporting obligation
By analogy with the DAC6 reporting rules for cross-border arrangements, a new reporting obligation is introduced for intermediaries involved in transactions relating to shares falling under the substantial interest regime or the internal capital gains regime.
Exceptions apply for holders of professional secrecy in compliance with the case law of the EU Court of Justice on DAC6.
Entry into force
The new regime will apply from 1 January 2026. The withholding of the movable withholding tax as referred to in Article 261, paragraph 1, 5° ITC92 will only enter into force 10 days after publication of this law in the Belgian Official Journal.
Since the levy of the tax takes place via movable withholding tax, a transitional provision is provided for the period between 1 January 2026 and 10 days after publication of the law in the Belgian Official Journal. During this period, collection will not automatically take place via withholding by intermediaries, but the taxpayer will have to declare the capital gain in his personal income tax return. However, he may choose to have movable withholding tax withheld at equivalent (i.e. post factum). This transitional regime can only be enjoyed if it is an explicit choice (opt-in).
