The capital gains tax on financial assets applies to profits realised upon the sale of investments. The standard tax rate is set at 10%.
Who does this apply to?
This tax applies strictly to individuals subject to Belgian personal income tax. It does not apply to your corporate entity (BV), as corporate entities remain subject to standard corporate income tax.
What is NOT taxed?
• Pension savings, long-term savings, and group insurance policies.
• Dividends and interest that have already been subject to the 30% Belgian withholding tax.
What is taxed?
• Stocks (both listed and unlisted), bonds, ETFs, and mutual funds.
• Cryptocurrencies and foreign currencies.
• Physical investment gold (silver, art, and diamonds remain exempt).
• Life insurance products (such as Branch 21 and Branch 23) upon surrender or payout.
Generous Exemptions and Relief Measures
• Standard Annual Exemption: The first €10,000 of realised gains per person, per year, is fully exempt. This threshold is indexed annually.
• Carryover Allowance: Unused exemptions can be carried forward over the next 5 years, up to a maximum of €1,000 per year (allowing a maximum total exemption of €15,000).
• Historical Capital Gains: Profits accrued before the law took effect are completely safe. The tax authorities use the asset value as of December 31, 2025, as your new cost basis (purchase price).
• Substantial Shareholdings: If you own at least 20% of the shares in a company, you fall under a tiered system specifically designed to protect entrepreneurs:
- 0% up to €1,000,000 (a one-time exemption every 5 years)
- 1.25% on the portion between €1,000,000 and €2,500,000
- 2.5% on the portion between €2,500,000 and €5,000,000
- 5% on the portion between €5,000,000 and €10,000,000
- 10% on any amount exceeding €10,000,000
Navigating the “Exit Tax”
If you relocate your tax residence outside of Belgium, the tax authorities will treat your financial assets as a “notional sale,” calculating the capital gains as if you had sold them on the day of departure. However, protective rules apply:
• Moving within the EU/EEA: You automatically receive a payment deferral. As long as you remain within the EU/EEA and retain the assets, you owe nothing.
• Moving outside the EU/EEA: Deferral is possible, though the tax authorities may require you to provide financial security or collateral.
Expert Tip: If Belgium shares a tax treaty with your new destination that includes an exchange of information and administrative assistance clause (which applies to a vast number of treaties), you will automatically qualify for an exit tax deferral—exactly as if you were moving within the EU.
For tailored cross-border tax advice, reach out to us today at: info@dehoon-dhp.com!
