What is the capital gains tax?

Capital gains tax is payable by tax residents of Belgium who are:

• natural persons, subject to personal income tax;
• legal persons, subject to the tax on legal entities (cf. Article 220, 3° and 4° ITC/92). This includes, for example, non-profit organisations and private foundations. However, an exception is provided for legal entities that are entitled to issue tax certificates in response to donations received, as well as for public authorities, certain intermunicipal companies, etc.

If the financial assets sold at a profit were held in so-called split ownership (i.e. usufruct/bare ownership), the status of the bare owner(s) is decisive, as they are liable for the capital gains tax.

If a partnership (‘maatschap’ / ‘société simple’) realises such a capital gain, the status of the underlying partners must be considered because of its fiscally transparent nature.

The legislation governing the obligation to declare for other associations without legal personality (e.g. investment clubs, de facto associations, etc.) also applies to the capital gains tax: the proxy holder of the association will owe the tax.

Capital gains on financial assets that have been certified will still be taxed transparently at the level of the holders of these certificates.

The capital gains tax is not payable by:

• Belgian companies subject to corporate tax;
• non-residents of Belgium.

Capital gains realised within the normal management of private assets as a result of a transfer of financial assets for consideration are taxable under the new capital gains tax.

The concept of “financial assets” must be interpreted very broadly. There are four categories:

1. Financial instruments (e.g. shares, bonds, funds, ETFs, options, futures, etc.).
2. Certain insurance contracts and capitalisation transactions (e.g. individual life insurance policies of the type Branch 21, Branch 23, Branch 26, Branch 44, Branch 6, etc.).
3. Crypto-assets.
4. Cash (e.g. foreign currency) and investment gold.

The capital gains must have been realised as a result of a “transfer for consideration”. This means that consideration must be provided by the acquirer (e.g. payment of a price).

The following are treated as a transfer for consideration:

1. the surrender, in whole or in part during life, of an insurance contract or capitalisation transaction, in which case the beneficiary is taxable;
2. emigration of the natural or legal person.

Transfers of financial assets following a gift or death fall outside the scope of the capital gains tax, as these are not transfers for consideration but transfers free of charge.

Transactions involving assets other than financial assets (e.g. art) are also excluded.

If capital gains are realised within a professional activity or result from speculation or abnormal management of private assets, they will be taxed as professional income or speculative income. Nothing changes in this respect.

The taxable base is the positive difference between the price received for the transferred financial assets and their acquisition value. Any costs or other taxes cannot be deducted.

The price obtained may take the form of a cash payment, shares received in exchange, etc.

The acquisition price is the price at which the financial assets were acquired for consideration. This means, among other things, that if the financial assets were acquired as a result of a gift or death, this has no impact. In other words, the acquisition value paid by the donor or deceased is transferred to the donee or heir, who consequently also assumes the deferred tax debt. There is no step-up.

If the same financial asset was acquired at different times, the FIFO principle (first in, first out) must be applied.

If certain financial assets are denominated in a foreign currency, they must be converted into euros at the exchange rate in force at the time of acquisition or disposal.

With regard to the partial surrender of insurance contracts and capitalisation transactions, the taxable base is the positive difference between the capital or surrender values paid and the proportional part of the premiums paid.

No. The law distinguishes between three types of transfers, each with its own rates, exemptions and administrative formalities.

There is a strict order: only if the transfer does not meet the criteria of Type 1 must it be assessed whether Type 2 applies. If that is also not the case, the residual category (Type 3) applies. The different types are discussed later in this FAQ.

Realised capital losses are deductible from realised capital gains, but only under very strict conditions:

1. the capital loss must be realised in the same taxable period as the capital gain; capital losses cannot be carried forward;
2. the capital loss must be realised by the same taxpayer as the capital gain;
3. the capital loss and the capital gain must be realised within the same category (Type 1, Type 2 or Type 3).

A loss in value within a securities portfolio may, for example, be set off against a capital gain on a Branch 23 insurance policy.

The tax is due on capital gains realised from 1 January 2026 onwards.

Historical capital gains (i.e. the increase in value up to and including 31 December 2025) are exempt. Consequently, for financial assets acquired before 1 January 2026, the tax acquisition value is the value of those assets on 31 December 2025.

Moreover, with respect to financial assets held on 31 December 2025, it is provided that, in the event of a transfer for consideration by 31 December 2030 at the latest, proof to the contrary of a higher actual acquisition value may be provided. This temporary measure only allows for a reduction of a capital gain, not for an increase of a capital loss. Such proof may be provided on the basis of the average purchase value; the FIFO method does not apply.

For capital gains realised from 1 January 2031 onwards, this option lapses and the value as at 31 December 2025 will in all cases be retained as the acquisition value for tax purposes.

The intention of the legislator is to tax only the Belgian period of ownership. Special rules therefore apply in the case of immigration and emigration.

In the event of immigration, the fiscal acquisition value of the financial assets is deemed to be their value on the date of immigration. The purchase price paid while the taxpayer was a non-resident is therefore irrelevant.

Emigration is treated as a transfer for consideration. The difference between the value of the financial assets on the date of emigration and their acquisition value for tax purposes is considered a taxable capital gain.

As no actual sale takes place, the law provides for an automatic deferral of payment of the capital gains tax when moving to an EU or EEA country, or to a country with which Belgium has concluded a double taxation treaty providing for the exchange of information and mutual recovery assistance. In the event of emigration to another country, deferral may be granted upon request, provided that sufficient security is furnished.

The deferred tax debt becomes due and payable if the financial assets are transferred for consideration or are used as collateral. Conversely, the deferred tax debt definitively expires if the taxpayer re-immigrates or if 24 months have elapsed since emigration.

An internal capital gain occurs when a taxpayer transfers shares or profit participation certificates, usually in their own Belgian or foreign operating company, to another company, usually a holding company, which they control directly or indirectly together with their family.

An internal capital gain may arise as a result of the contribution or the sale of shares. With regard to contributions, the tax legislator has already taken measures in the past to curb abuses in practice. In the context of the capital gains tax, only internal capital gains realised as a result of a sale are targeted.

There is no minimum percentage for the transferred shares or profit participation certificates. As far as the acquiring company is concerned, control exercised by the taxpayer alone or together with their family must be assessed in accordance with Article 1:14 of the Code of Companies and Associations.

The starting point is the general principles described above.

For non-listed companies, the highest of the following values may be retained as the acquisition value for tax purposes on 31 December 2025:

• the value used in the event of a transfer for consideration of the same financial assets between fully independent parties, or on the occasion of the incorporation of the company or the last capital increase that took place between 1 January 2025 and 31 December 2025;
• the value resulting from the application of a valuation formula set out in a contract or in a contractual offer of an option to sell in respect of these financial assets, effective on 1 January 2026;
• in the case of shares and instruments treated as shares, the equity increased by an amount equal to four times the EBITDA referred to in Article 2759, §2, 3° ITC/92 of the financial year last ended before 1 January 2026.

By way of derogation, the taxpayer may determine the value of shares and instruments treated as shares as being equal to their value on 31 December 2025, as determined by 31 December 2027 at the latest by an auditor who is not the statutory auditor or an independent certified accountant.

Internal capital gains realised through sale are fully subject to a tax rate of 33%.

No tax exemption is provided. The entire internal capital gain is taxable.

Yes. The realised internal capital gain must be declared in the personal income tax return or the legal entities income tax return.

A substantial interest exists when the taxpayer directly owns at least 20% of the rights in the company whose shares are transferred, provided that the transfer does not fall under Type 1.

Rights in the company refer to rights in the capital (e.g. in the case of a Belgian NV) or in the equity capital (e.g. in the case of a Belgian BV). This also applies to foreign companies.

The identity of the transferee is irrelevant.

The general principles and the specific rules applicable to Type 1 also apply.

For the capital gain on a substantial interest, progressive rates apply:

If the participation is transferred to a non-EEA legal entity, a flat rate of 16.5% applies.

Yes. The first EUR 1,000,000 of realised capital gains on substantial interests remains exempt. This exemption may be used over a period of five consecutive years.

Yes. The capital gains on substantial interest must be declared in the personal income tax return or the legal entities income tax return.

Capital gains realised on financial assets other than those falling under Type 1 or Type 2 are taxable under the residual regime. This includes, for example, gains realised within a securities portfolio, the transfer of a minority participation (less than 20%) or the surrender of a Luxembourg life insurance policy.

The general principles apply, together with certain specific valuation rules.

For listed financial assets held on 31 December 2025, the acquisition value equals the closing price at year-end 2025.

For insurance policies existing on that date, the higher of the asset value or the sum of premiums paid may be used.

Special rules apply to share option plans under the Law of 26 March 1999.

A flat rate of 10% applies to capital gains within the residual regime.

The first EUR 10,000 of capital gains is exempt per person and indexed annually. Unused exemption of EUR 1,000 per year may be carried forward for up to five years.

Capital gains already taxed as movable or professional income are excluded.

Specific exemptions apply, including for pension products, group insurance, and certain corporate actions.

The capital gains tax is generally withheld by the Belgian bank, unless the taxpayer opts out. In the case of opt-out, all capital gains and losses must be declared in the personal income tax return.

For legal entities, the capital gains tax must be declared, withheld and paid directly by the entity via the legal entities tax return.