A new tax on financial capital gains will take effect on 1 January 2026, forecasted to generate the government €500 million annually.
Until now investors in Belgium benefitted from a unique tax law that made Belgium one of the best countries in the world to invest from.
While the country has one of the highest taxes on labour income, private individuals with long term investments in the stock market have benefitted from 0% tax on investment profits (known as capital gains), under certain conditions.
However, as part of several new tax measures introduced by the government, a 10% tax on all capital gain from the sale of stock shares, cryptocurrencies and insurance contracts will be applied from 1 January 2026
Finance Minister Jan Jambon told journalists before Christmas that the new measures are "critical" and "ultimately in the best interest of both current and future generations.”
The aim is to save €9.2 billion over this government's mandate and reduce budgetary deficits and mounting debts.
Transition
To facilitate the implementation of the capital gain tax, the government has agreed on a transitional arrangement while awaiting full legal adoption.
During the transition period, banks will not automatically deduct the tax when shares and securities are sold, unless customers explicitly request it.
Those opting out will need to declare their capital gains in their tax returns.
Once the law is fully in place, banks will generally withhold the tax on capital gains at the point of sale.
However, customers will have the choice to opt out, meaning the tax won’t be deducted automatically and the gains must be reported directly in their tax declarations.
Fourth highest debt-to-GDP ratio in the EU
Belgium’s debt has increased by €32 billion this year according to the country's debt agency's latest report in November. Total federal debt currently stands at €551 billion - 106.8% of its gross domestic product (GDP).
Belgium has the fourth highest debt-to-GDP ratio in the EU. Only Greece (152.5%), Italy (137.9%), and France (114.1%) have higher public debt levels.
