What you need to know – effective from 1 January 2026
What’s changing?
For many years, Belgium has been one of the few countries without a general capital gains tax (CGT) on financial investments. This is about to change. Starting 1 January 2026, a new CGT will apply to a wide range of financial assets held by Belgian residents. If you hold investments such as shares, funds, or insurance-based savings plans, this may affect you.
What will be taxed?
The new CGT will apply to gains you make when selling or withdrawing from:
- Shares (listed and unlisted)
- Bonds, investment funds, ETFs
- Derivatives (e.g. options)
- Cryptocurrencies and gold
- Insurance-based investment products (such as Branch 21 and Branch 23)
How much is the tax?
- A flat 10% tax will be charged on capital gains (i.e. profits made when selling investments).
- Each person gets a €10,000 tax-free allowance per year.
- If you don’t use the full allowance, you can carry forward up to €1,000 per year for a maximum of €15,000 over five years.
- Only gains made after 1 January 2026 will be taxed. Anything realised before this date will not be affected.
When does the tax apply?
You will only be taxed when you sell or withdraw from your investments. Transfers of assets due to death, gifts or marital contributions will not trigger the tax.
What about life insurance contracts?
If you hold a Branch 21 (fixed return) or Branch 23 (unit-linked) life insurance policy:
- CGT will apply only when you withdraw funds or surrender the policy.
- The 2% insurance premium tax paid at the start still applies.
- This may reduce the CGT you pay later, but the exact rules are not yet confirmed.
- If the policy pays out due to death or is gifted, no CGT will apply
Other key points
- If you move abroad, you may still have to pay CGT if you sell investments within two years of leaving Belgium.
- Investments held abroad must be declared in your annual tax return. You will also need to claim the €10,000 exemption in the return, even for Belgian assets.
- Some existing taxes will still apply (e.g. Reynders tax on interest-bearing funds, speculative tax), which could lead to double taxation in some cases.
- Legal entities like foundations and non-profits will also be subject to this new tax.
- People who own at least 20% of a private company may benefit from reduced or progressive tax rates on gains from those shares.
What you should do now
If you’re a Belgian resident with financial investments, now is the time to:
- Review your portfolio – particularly if you hold shares, funds, or life insurance contracts.
- Consider tax-efficient structures – Branch 21 and 23 insurance products may still offer useful tax deferral benefits.
- Plan for future reporting – Holding foreign investments? Be ready for extra paperwork from 2026.
- Stay updated – The final version of the law could still change. We’ll keep you informed.
Need help?
If you’d like a review of your investments or want to understand how the new tax may affect your personal situation, please contact us. We’re here to help you prepare well in advance
Please note: This summary is based on a draft version of the law and may be subject to change. Final details will be confirmed once the legislation is passed by Parliament.
