The legislation introduces a shift in how investment gains are handled within the “normal management of a private estate,” primarily targeting financial assets that were previously often exempt.
Key Tax Rates and Exemptions
- General Financial Assets: A 10% tax applies to gains on financial instruments, crypto assets, and certain insurance contracts.
- Exemption: Only gains exceeding €10,000 are taxed.
- Carry-forward: Unused exemption amounts (up to €1,000/year) can be carried forward for five years.
- Substantial Shareholdings (20%+): Exempt up to €1,000,000. Excess gains are taxed at progressive rates from 1.25% to 10%.
- Internal Capital Gains: Gains from selling shares to a company controlled by the seller (or close relatives) are taxed at 33%.
- Abnormal Management: Gains deemed outside “normal private estate management” continue to be taxed as miscellaneous income at 33%.
Valuation of Assets (The “Step-up” Rule)
The tax only applies to gains accrued after January 1, 2026. To establish a baseline:
- Listed Assets: Value is based on the last closing price of 2025.
- Unlisted Assets: Taxpayers use the higher of the acquisition price or the value on December 31, 2025 (verified by an auditor/accountant).
- Historical Cost: For disposals through 2030, taxpayers may choose to use the actual documented acquisition cost.
Exit and Entry Rules
- Exit Tax: Residents moving abroad may face tax on gains accrued up to their departure if the assets are sold within two years. Payment can be deferred when moving to EU/EEA countries or treaty partners.
- Entry Rule: New Belgian residents have their assets’ acquisition value “reset” to the market value at the time they become residents.
Collection Method
For most standard financial instruments, Belgian intermediaries will withhold the tax at source automatically, though taxpayers can opt out and report it via their annual tax return instead.
