Belgium to Introduce Capital Gains Tax for Individuals from January 2026
Brussels, The Gulf Observer: In a major fiscal policy shift, Belgium will introduce a 10% capital gains tax on private individuals starting 1 January 2026, ending its longstanding position as one of the few European countries without such a levy. The move follows an agreement between the Federal Government’s coalition partners and is part of a broader effort to address the nation’s budget deficit.
Currently, Belgium’s capital gains tax rate for individuals stands at 0%, compared to 42% in Denmark, 34% in France, and 24% in the UK. The new measure, branded as a “solidarity contribution”, aims to generate revenue to reduce Belgium’s federal budget shortfall, estimated at over €25 billion — or about 4% of GDP — in 2025. Under Eurozone rules, member states must keep deficits below 3% of GDP.
Some policymakers view the change as a first step toward easing the tax burden on labour, shifting more responsibility for funding the state toward capital. Belgium currently has one of the highest personal income tax rates in Europe.
Scope and Thresholds
The tax will apply to annual personal capital gains exceeding €10,000. For individuals with no realised capital gains for five consecutive years, the threshold will rise to €15,000. It will cover profits from financial assets such as shares, cryptocurrencies, gold, and currencies, and will apply to all Belgian tax residents — including gains on assets held abroad.
Speculative investments, already taxed at 33%, are excluded from the new measure.
Impact on Foreign Residents
The tax is non-retroactive. Gains will be calculated based on the value of assets as of 31 December 2025. For those becoming Belgian tax residents after 1 January 2026, the acquisition value will be the market value on the date of arrival.
Tax experts advise residents with foreign assets to keep clear records — including photographs or screenshots — of asset values on the cut-off date to ensure accurate reporting. Gains from foreign-held assets must be declared in Belgian income tax returns, while domestic financial institutions will withhold tax on locally held assets at the time of sale.
Exit Tax Provision
The law will also introduce an “exit tax” for those who move their tax residency abroad. Assets will be treated as if sold upon departure, and any gains realised since acquisition (or since 31 December 2025) will be taxed.
For relocations to countries within the EU, EEA, or treaty partners such as the UK and USA, payment of the exit tax may be deferred for up to 24 months until the assets are actually sold, provided there is an agreement to exchange financial information.
An official draft of the legislation has yet to be published, but the measure marks a significant shift in Belgium’s taxation landscape, aligning it more closely with other European economies.
