Belgium's new capital gains tax law introduces progressive rates from 1.25% to 10% on investment profits, effective 1 January 2026. While the first €1 million in controlled company shares and EUR 4,855 in general financial assets remain exempt, the legislation marks a historic shift in Belgian wealth taxation, targeting high-net-worth investors while protecting smaller portfolios through generous thresholds.
Belgium has enacted a law that introduces capital gains taxation on financial assets, effective 1 January 2026. The Act, signed into law on 6 April 2026, represents a fundamental shift in how the country taxes investment income.
Progressive tax structure for different asset categories
The new law establishes three distinct categories of taxable capital gains. For shares in companies where investors exercise control or hold substantial stakes (Category A and B under Article 90), Belgium has implemented a progressive rate structure.
The first EUR 1 million is exempt, followed by rates of 1.25% on gains between EUR 1 million and EUR 2.5 million, 2.5% on gains from EUR 2.5 million to EUR 5 million, 5% on gains from EUR 5 million to EUR 10 million, and 10% on amounts exceeding EUR 10 million.
For general financial assets, including stocks, bonds, investment funds, crypto assets, and life insurance products (Category C), the tax rate is set at 10%.
However, significant protections exist for smaller investors: the first EUR 4,855 of annual gains is exempt, with an additional rollover provision allowing unused exemption amounts up to EUR 480 per year to carry forward from previous periods.
Transitional provisions and implementation timeline
The legislation includes important transitional measures for assets held before 2026. For existing holdings, capital gains will be calculated based on their value as of 31 December 2025, rather than the original purchase price. Taxpayers have until 31 December 2030 to elect using their actual acquisition cost if more favourable.
Withholding tax collection begins 1 June 2026, with intermediaries, including banks and investment firms, responsible for deducting taxes on applicable transactions. Investors can opt out of automatic withholding by notifying their financial institution before 31 August 2026, though they must then report gains in their annual tax returns.
Exemptions and special rules
Several exemptions apply beyond the basic thresholds. Tax-neutral reorganisations, including mergers, demergers, and qualified share contributions, remain untaxed. Capital gains from dividing jointly-owned assets following death, divorce, or separation within three years are exempt. Investment fund reorganisations also receive favourable treatment.
The law includes anti-abuse provisions targeting transfers to entities in non-European Economic Area jurisdictions, which face higher tax rates. Legal entities and foundations previously exempt from capital gains taxation now fall under the new regime with similar rates and exemptions as individual taxpayers.
Reporting requirements mandate that advisors, lawyers, and other professionals involved in substantial share transfers provide transaction details to tax authorities by the last day of February following the transaction year. Belgium has also introduced payment deferral mechanisms for individuals relocating to EU or EEA member states, preventing immediate taxation upon emigration while maintaining eventual collection rights.
Earlier, the Belgian Parliament passed legislation on 2 April 2026 implementing a capital gains tax on financial assets, applying to all gains realised from 1 January 2026 onwards.
