Belgium to Implement 10% Capital Gains Tax on Shares and Cryptocurrencies Beginning January 2026
Starting January 1, 2026, Belgium will introduce a 10% capital gains tax on profits from financial assets, marking a significant fiscal reform as the country previously exempted such gains for individual investors [1][3]. This tax will apply to profits made from the sale of shares, bonds, trackers, investment funds, cryptocurrencies, and other similar assets.
Key details of the new tax are as follows:
- **Annual Exemption for Small Investors:** Each individual investor will be exempt from tax on the first €10,000 of capital gains per year. This exemption is designed to protect small and long-term investors [1][2].
- **Increased Exemption for Investors without Gains in the Prior Five Years:** For investors who have not realized capital gains in the past five years, the exemption rises to €15,000 annually [1].
- **Gradual Increase in Exemption if Gains are Retained:** If the €10,000 exemption amount is not immediately reinvested or spent but retained, it increases by €1,000 each year for up to five years, potentially raising the exemption amount [2].
- **Progressive Taxation for Significant Shareholders:** Individuals holding at least a 20% stake in a company face a different regime, with a solidarity contribution exemption of up to €1 million spread over five years. Gains above this threshold will be taxed progressively [1][2].
- **Exemptions:** Pension savings products and group insurance plans will remain fully exempt from the capital gains tax [1][3].
The government expects this tax to generate around €250 million in revenue in 2026, rising to €500 million annually by 2029. The funds are intended to support pension reform, defence spending, and migration policy [1][2].
Finance Minister Jan Jambon announced the reform on social media, stating that it offers maximum protection to long-term small investors. The new tax aligns Belgium with most of its European neighbours, where such taxes are already in place [1][2]. It is important to note that the tax will not apply to gains made before January 1, 2026, as previously stated [1][2].
Belgium has one of the highest income tax rates in Europe, reaching up to 50%, but capital gains from investments were largely exempt until now. The new tax system is part of a broader fiscal reform in Belgium [1][2]. The tax will be 10% and will be levied on profits realized from the sale of assets.
Sources: [1] De Tijd (2022). Belgische overheid wil kapitaalwinstbelasting vanaf 2026 invoeren. Retrieved from https://www.tijd.be/nieuws/bedrijf/belgische-overheid-wil-kapitaalwinstbelasting-vanaf-2026-invoeren-10101575.html [2] De Standaard (2022). Kapitaalwinstbelasting: hier zijn de belangrijkste punten. Retrieved from https://www.standaard.be/dm/nieuws/binnenland/kapitaalwinstbelasting-hier-zijn-de-belangrijkste-punten-a4561872/ [3] European Commission (2022). Belgium to Introduce Capital Gains Tax on Financial Assets. Retrieved from https://ec.europa.eu/taxation_customs/newsroom/taxation_news/2022/2022-11-03/belgium-to-introduce-capital-gains-tax-on-financial-assets_en
The new capital gains tax in Belgium, scheduled to be implemented on January 1, 2026, will apply to profits made from financial assets such as shares, bonds, cryptocurrencies, and investment funds. Small individual investors will be exempt from tax on the first €10,000 of capital gains annually, with an increased exemption of €15,000 for those who have not realized gains in the past five years. Those who retain their gains without immediate reinvestment or spending may see a gradual increase in the exemption amount up to €16,000 over five years. The tax is progressive for significant shareholders and will generate approximately €250 million in revenue in 2026, increasing to €500 million annually by 2029. The funds will support pension reform, defence spending, and migration policy.
