Belgium’s New Capital Gains Tax on Financial Assets

The Belgian government is introducing a new tax on capital gains from financial assets, expected to take effect on 1 January 2026. The draft law has been updated following advice from the Council of State and will be submitted with Parliament for approval later this week. Besides informing you about the latest changes in this draft law, we also want to provide you with a general overview.

The basic principles of the draft law remain unchanged and they can be summarized as below. We refer to our earlier flash for a more detailed description of the initial text.

The tax applies to individuals and not-for-profit entities (except those recognized for tax-deductible donations). Companies are not affected.

The tax targets profits from selling financial assets, such as shares, bonds, investment funds, insurance contracts with an investment component, crypto-assets, and certain currencies (like investment gold and electronic money).

The draft law clarifies that only transfers for consideration  are taxed (e.g. sale, exchange, contribution, redemption of shares,…). Some transactions are also deemed by law to be transfers for consideration, such as the payment of certain life insurance products and the emigration of the taxpayer. Gifts and inheritances on the other hand are not taxed, which also implies that future capital gains will be calculated on the original price paid by the person who originally acquired these assets. 

Especially relevant for future estate planning, is the application of these rules to the contribution of financial assets to a Belgian partnership (maatschap or société simple). It is expressly mentioned in the explanatory notes that transfers to such a transparent entity are viewed as a taxable transfer for consideration, except if it only concerns shares.  

There are three main categories:

1. Internal Transfers: 

These are transfers of shares and profit certificates to a company that the seller controls together with his or her family. Taxed at 33%.

2. Significant Shareholdings: 

A transfer of shares if the seller owns at least 20% of rights in a company:

• First €1 million over 5 years: Exempt
• €0–2.5 million: 1.25%
• €2.5–5 million: 2.5%
• €5–10 million: 5%
• Above €10 million: 10%
• Transfers to non-EEA entities: 16.5%. Note that also for transfers to not-EEA entities the first million of capital gains over a 5 years period are exempt.   

3. Other Financial Assets:

Taxed at 10%, with the first €10,000 (indexed) exempt. Unused exemption can be carried forward for up to five years.

The most important change for owners of a significant shareholding, since our last flash, probably concerns the rules regarding the valuation of the market value of companies per 31 December 2025, as an alternative to the EBITDA rule. This valuation must be done no later than 31 December 2027 (previously 31 December 2026).  This valuation still needs to be prepared by an auditor or certified accountant, but it is clarified that they cannot be the regular professional practitioner. According to the explanatory notes, the tax authorities can exceptionally audit the valuation by the auditor or accountant if there are indications that the valuation is not in line with market standards. We understand that this valuation could also be applied for financial assets for which the other valuation methods are not applicable (e.g. for an unquoted bond).

The draft preparatory documents also confirm that marital property law must be considered when calculating capital gains tax. For example, if a couple is married under the statutory regime, capital gains realized on jointly owned financial assets must be declared by each spouse for half the gain. However,  a couple who jointly owns more than 20% of the shares in a company, but less than 40%, will probably not qualify as having a significant shareholding as in that case each partner would be deemed to hold a participation of less than 20%.

The draft law also provides an additional exemption: capital gains realized upon the exit from an indivision within three years following a death, divorce, or the end of legal or de facto cohabitation are exempt.

Banks will only be required to withhold tax on capital gains realized on financial instruments and certain insurance agreements. For other capital gains (e.g., internal transfers, significant shareholdings, or gold), no withholding obligation is foreseen; taxpayers will need to declare this income in their personal income tax return.

As it is still unclear when the law will enter into force, transitional measures regarding withholding tax are provided for the period between 1 January 2026 and the effective date of the law. No withholding tax needs to be withheld by banks until the law takes effect. However, upon request of all account holders, the bank may withhold an amount equal to the withholding tax and subsequently pay the withholding tax due for the period between 1 January 2026 and the law’s entry into force.

Based on the latest information, it is expected that capital gains realized as of 1 January 2026 will be subject to the new capital gains tax. Taxpayers will have until 30 June 2026 to inform their bank if they do not want the bank to withhold capital gains tax on financial instruments (“opt-out”); this choice will apply for the entire 2026 income year.

As a transitional measure, intermediaries have until 30 September 2026 to pay any tax withheld on income from the first half of 2026.

Although the capital gains tax will only apply from 2026, taxpayers can already take certain actions. It may also be useful to consider the impact of the capital gains tax when finalizing annual accounts as of 31 December 2025. Correctly valuing your assets by the end of 2025 is crucial. KPMG can assist with valuations and help you prepare for the new rules.