Capital gains tax on financial assets in 2026: complete guide

After months of negotiations, the law on capital gains tax was passed (law of 6 April 2026). This new tax has far-reaching consequences for natural persons subject to personal income tax and non-commercial legal entities that hold financial assets.

The introduction of this general capital gains tax on financial assets represents a radical reform of the Belgian tax system, which will come into force on 1 January 2026.

Until now, income tax has only been levied on capital gains on shares in very specific cases. From 2026, this will change fundamentally.

Find out in this article how much tax you pay in different situations.

 

The new capital gains tax is payable by:

  • Natural persons (private individuals) who are Belgian residents
  • Non-commercial legal entities who are not liable for corporate income tax, such as non-profit organisations and foundations
  • Associations without legal personality that choose to be taxed under the legal entities tax
Please note: In the case of split ownership, the income is deemed to have been realised in full by the bare owner. 


Specific exceptions

There is a specific exception within the legal entities tax. Entities that are eligible to receive donations that are tax deductible remain exempt from capital gains tax.

The new capital gains tax does not apply to non-residents. In addition, the normal rules continue to apply in the corporate income tax.

Transparent taxation of certificates: Capital gains on financial assets certified in accordance with the law on the certification of securities issued by commercial companies are still taxed transparently on the holders of these certificates. This means that the tax is not levied on the vehicle itself, but may still have consequences for the certificate holders.

When assets are placed in a structure without legal personality, such as a civil partnership, the capital gains are not taxed at the level of the structure, but at the level of the ultimate partners in the partnership, in proportion to their participation.

Capital gains tax applies to capital gains on financial assets realised as a result of a transfer for consideration.

Four categories of financial assets

Based on art. 92§1 Income Tax Code, the concept of financial assets must be interpreted broadly. It comprises four separate categories:

  1. Financial instruments: listed and non-listed shares, bonds, money market instruments, derivatives (including options and futures) as well as emission rights and participation rights in collective investment institutions, ETFs, etc.
    These are included regardless of whether they are held in Belgium or abroad.

  2. Insurance contracts and capitalisation transactions: savings insurance (branches 21, 22 & 26 or a combination that includes a savings component) and investment insurance (branches 23 & 44). Foreign insurance and capitalisation transactions that are substantively similar to the Belgian variant also fall within the scope of application.

    Not taxed: Capital gains on group insurance, supplementary pension products and life insurance within the long-term savings system.

  3. Crypto assets: including non-fungible tokens for payment or investment purposes
  4. Currency: including investment gold


Capital gains tax only applies to capital gains realised from 1 January 2026 onwards as a result of a transfer for valuable consideration. This means that the transferor must receive a price in exchange for the financial assets they transfer.

No capital gains tax applies to:
  • Gifts
  • Transfer of ownership upon death (legal succession or will)
  • Withdrawal from joint ownership upon death, divorce or end of legal/de facto cohabitation
  • Contribution upon marriage

These events do not give rise to the realisation of capital gains as referred to in Article 90, first paragraph, 9°, Income Tax Code 92.

Events treated as a transfer for consideration

The following events are treated as transfers for valuable consideration (Article 92(2) Income Tax Code 92):

  1. Distribution of capital and surrender values of life insurance contracts and capitalisation transactions during the lifetime of the taxpayer. Distributions to beneficiaries upon death or in the event of a change between investment funds do not give rise to capital gains tax.
  2. Exit tax: Transfer by a taxpayer of his place of residence or seat of fortune abroad (see section Exit tax).

Capital gains tax is divided into three different categories, each with its own tax regime. A transfer can only fall under one provision, namely the most specific one. 

Important: In the event of speculation or abnormal management of private assets, the realised capital gains are taxed at the separate tax rate of 33%. The new capital gains tax therefore only applies in the context of the normal management of private assets and outside the professional sphere. 


Category 1: Internal capital gains

When does it apply?

Internal capital gains arise in case a taxpayer realises a capital gain when selling shares to a company that he controls - either directly or indirectly, alone or together with close family members. Close family members are:

  • Spouse
  • Descendants
  • Ascendants
  • Collateral relatives up to and including the second degree and those of the spouse


Tax rate:

The entire capital gain will be automatically and fully taxed at a separate rate of 33%. This applies without any tax exemption or other exceptions. However, no additional municipal tax will apply.

Please note: This tax does not apply if it concerns a contribution of shares or if the purchaser of the shares is controlled by the transferor's close family members without any intervention by the transferor himself. In the case of a transfer of a family business from parents to their children, the new regime of 'internal capital gains' will not apply, but the 'substantial interest' capital gains tax or the 'general' capital gains tax may potentially apply.


Category 2: Substantial interest participations

When does it apply?

This scheme applies to taxpayers who hold a substantial interest of at least 20% of the rights in the company whose shares are being transferred.

Important: The 20% participation percentage is assessed strictly per person and is therefore not cumulative. This concerns capital gains realised outside of professional activities or without speculative intent.


Exemption and graduated rates:

For participations with a substantial interest, there is an exemption from capital gains tax on the first tranche of €1,000,000 of capital gains.

The amount of the exemption can only be used once during a period of five consecutive years. The exemption under the substantial interest regime should therefore be regarded as a backpack that the taxpayer can use during that period.


Tax structure above €1 million

The bracket between €1,000,000 and €2,500,000 is taxed at a rate of 1.25%.

  • The bracket between €2,500,000 and €5,000,000 is taxed at a rate of 2.50%.
  • The bracket between €5,000,000 and €10,000,000 is taxed at a rate of 5.00%.
  • The portion of the capital gain exceeding EUR 10,000,000 is taxed at a rate of 10.00%.

In the event of a transfer of shares representing rights in a domestic company to a legal entity whose principal place of business or registered office is not located in a Member State of the European Economic Area, the capital gains realised will not be taxed within the framework of substantial interest but at a separate rate of 16.5%. This also takes into account the exemption from capital gains tax on the first tranche of EUR 1,000,000.00 of capital gains.


Category 3: General rules for other capital gains

When does it apply?

This scheme applies to all capital gains that do not fall under the previous two categories. This concerns transfers of financial assets within the normal management of private assets and outside the scope of professional activities.

Tax rate: 10% on capital gains above the basic exemption.

The capital gains realised will be taxed at a separate tax rate of 10%. However an annual exemption of EUR 10,000.00 will apply, which will be indexed annually. If the exemption is not fully used in a given year, the unused part of the first EUR 1,000 tranche can be transferred for up to 5 years with a cumulative cap of EUR 15,000. Any future capital gains will first be charged to the oldest transferred portion of the basic exemption.

The taxable base is the positive difference between the price received for the transferred financial assets and the acquisition value of those assets. The law provides for a number of specific rules for determining the acquisition values.

It is a net taxable base: the payment of any costs or taxes, regardless of their nature, is not taken into account when calculating the capital gain.

Calculation for life insurance contracts

For life insurance contracts that fall within the scope of application, the taxable base corresponds to the positive difference between:

  • The capital sums or surrender values (received)
  • The total premiums paid

If the contract was concluded before 1 January 2026, the principle applies that historical capital gains do not fall within the scope of capital gains tax.

Offsetting against capital losses

The capital gains may be reduced by any capital losses on financial assets that fall within the scope of capital gains tax.

Conditions for offsetting:

  • The capital loss must have been realised by the same taxpayer
  • During the same taxable period
  • Within the same category of taxable financial assets

The capital loss corresponds to the negative difference between the price received for the transferred financial assets and the acquisition value as proven by the taxpayer.

Capital gains tax will come into force on 1 January 2026. Consequently, historical capital gains up to and including 31 December 2025 will not be subject to capital gains tax.

How does the “snapshot value” work?

In order to implement this transitional arrangement, the value of the financial assets on 31 December 2025 will be used to calculate the capital gains.

For listed assets:

For financial assets listed on a regulated market, the last closing price of 2025 applies.

For unlisted assets:

For financial assets that are not listed on a financial market, specific valuation rules are provided by the law.


Practical example:

A share is purchased for €250 in 2023 and is worth €275 on 31 December 2025. If sold at €300 in 2026, only €25 (€300 - €275) will be subject to capital gains tax.


Higher acquisition value versus “snapshot value”

If the acquisition value is higher than the value on 31 December 2025 (snapshot value), the acquisition value will be retained until 31 December 2030, insofar as this is proven by the taxpayer.


FIFO method for identical assets

When a taxpayer has acquired several identical financial assets at different times and only sells a few of them, the FIFO method is applied.

This means that the asset acquired first is deemed to be transferred first (First In, First Out).

Note that the FIFO method only applies to purchases as of 2026. For assets purchased before 2026, a weighted average purchase price per asset should be used.

The manner in which capital gains tax is collected depends on the category to which the taxable capital gain belongs. 

Internal capital gains and substantial interest: via tax return

Capital gains for these categories are collected via the income tax return. The exemption for capital gains relating to substantial interests can also be applied via the tax return, if applicable.

General rules: Withholding tax or opt-out

In all other cases (general rules), the tax is in principle withheld at source by banks and/or intermediaries established in Belgium.

However, the basic exemption and exemption for capital losses are not taken into account when determining withholding tax.

This will be applied via the annual income tax return. The withholding tax already deducted is fully offset against the tax ultimately due on the return.

Opt-out system

The taxpayer has the option to opt out. This means that no withholding tax is deducted when the capital gain is realized; however the gain should be reported in the annual income tax return.

Advantage: There is no 'pre-financing'.

Disadvantage: The tax authorities are informed by the financial institution of the opt-out and of all income to which this opt-out relates.

Conditions for opting out:
  1. The taxpayer must notify his financial institution of his choice to opt out.
  2. In the case of multiple account holders, all account holders are required to opt out. If at least one account holder does not wish to opt out, the withholding tax principle applies to all account holders of the account in question.

Foreign accounts

Taxpayers who realise capital gains through a foreign bank are responsible for correctly declaring these gains in their income tax return.

When moving abroad, the law assumes that a taxpayer has sold all of his investments at that moment. As a consequence the capital gains tax will in principle be applicable on unrealized capital gains even though the gain is not actually realized.

However, the new legislation provides some relief measures. A distinction is made between two situations:

Situation 1: Relocation to an EEA or treaty country


Automatic deferral of payment

In the event of a move to an EEA country or a country with which Belgium has concluded a double taxation treaty including an exchange of information and recovery assistance clause, a deferral of payment of the exit tax is automatically granted.

When is no exit tax due?

No exit tax is payable if the taxpayer does not realise any capital gains within 24 months after leaving Belgium.

Sale within 24 months?

If the sale takes place within this period of 24 months after emigration, Belgium will in principle levy an exit tax. In that case, it is important to check whether Belgium actually has the right to tax the capital gain on the basis of the applicable double taxation treaty.

Annual certification requirement

In order to ensure compliance with the conditions for deferred payment, the taxpayer must submit an annual certificate to the administration confirming that the conditions for maintaining the deferral continue to be met.

Situation 2: Relocation to a third non-treaty country


In the event of a move to a third country with which Belgium has no double taxation treaty or to a country with which Belgium does have a treaty but which does not provide for the exchange of information and/or recovery assistance, a deferral of payment may also be granted, but only at the taxpayer's request and on condition that he can provide sufficient guarantee of payment.

Annual certificate requirement

Also in this case, the taxpayer must submit an annual certificate to the administration.