Belgium's Ministry of Finance published Circular 2026/C/74 establishing a new capital gains tax framework for individuals on financial assets with three categories taxed at 33%, 1.25%–10%, and 10% respectively, including EUR 1 million and EUR 10,000 annual exemptions.
The Belgian Ministry of Finance has published Circular 2026/C/74 on 22 July 2026.
Circular 2026/C/74 outlines the Belgian tax framework for financial capital gains following legislation enacted on 6 April 2026. Circular 2026/C/74 provides comprehensive guidance on the new capital gains tax on financial assets specifically for personal income tax purposes, leaving the rules for corporate entities and withholding tax to be covered in separate circulars.
The new tax applies to capital gains realised by individuals managing their private wealth (non-speculative) and categorises these gains into three main types, each with its own tax rates and exemption rules:
Category A (Type A): Internal capital gains
This category targets the transfer of shares or profit certificates to a company over which the transferor, either alone or together with their close family, exercises direct or indirect control.
These internal capital gains are taxed at a flat rate of 33% (excluding local communal surcharges).
Due to the internal nature of the transaction (where the taxpayer is essentially both the assignor and the assignee), no withholding tax is applied at the source, but it triggers strict reporting obligations.
Category B (Type B): Substantial participations
This specific regime applies to gains from the transfer of shares where the taxpayer holds a substantial interest of at least 20% in the company’s capital. Taxpayers benefit from a first instalment exemption of EUR 1 million, which is available over a consecutive five-year taxable period.
After the exemption is applied, the remaining gains are subject to progressive tax rates ranging from 1.25% to 10% (1.25% for gains up to EUR 2.5 million, up to 10% for gains exceeding EUR 10 million).
If the shares belong to a non-resident company whose principal establishment is located outside the European Economic Area (EEA), a distinct flat rate of 16.5% applies.
Category C (Type C): General/residual financial assets
Category C covers all other financial assets not included in Categories A or B, such as financial instruments, insurance contracts, crypto-assets, and certain investment funds. Capital gains are taxed at 10%, with an annual tax-free exemption of EUR 10,000 (indexed and applicable for the 2027 assessment year). Taxpayers may also accumulate an additional exemption, starting at EUR 1,000 from 2028, for years in which no capital gains are realised.
Calculating the tax base and historical exemption
The tax base is calculated as the positive difference between the sale price received and the acquisition value. A core principle of this new regime is the exemption of historical capital gains. For financial assets acquired before 1 January 2026, the acquisition value is determined by a “snapshot” (moment-photo) valuation of the asset’s worth on 31 December 2025.
Exit tax and payment deferrals
The Circular introduces an exit tax on unrealised capital gains when an individual ceases to be a Belgian tax resident by moving their domicile or wealth abroad. Taxpayers relocating to an EU/EEA country or a jurisdiction with a qualifying tax treaty may obtain a payment deferral, which is automatic for EU/EEA moves and available on request for certain non-EU/EEA countries subject to the provision of adequate security. Annex II lists the eligible non-EU/EEA treaty jurisdictions that qualify for the deferral regime.
Additional exemptions
Aside from the monetary thresholds, the tax does not apply in several specific scenarios:
- Transfers without consideration: Inheritances, donations, and transfers due to death do not trigger the tax because no “realisation” of a gain has occurred.
- Division of co-ownership: Assets acquired during a division of co-ownership, such as following a divorce or the end of legal cohabitation, are exempt from being taxed at the time of the division.
- Corporate restructurings: Capital gains realised when exchanging shares during mergers, spin-offs, or contributions to holding companies are temporarily exempt.
- Pensions and double taxation: Second- and third-pillar pension savings are exempt. Furthermore, income that is already taxed under the “Cayman Tax” or the “Reynders Tax” is excluded to prevent double taxation.
