Aimed at Belgians and those domiciled in Belgium, why is the latest state bond in the news, and how can you secure it?
From Wednesday, Belgian residents can lend the Federal Government money through a new state bond. The latest bonds return 1.93% net in one year, after withholding tax on the interest is collected. This is the highest rate in over 12 months.
The interest rate on one-year bonds has been climbing since hitting a low in June 2025 of 1.8% before tax. The interest rate for today's equivalent one-year bond puts it just under one percentage point above that rate at 2.75%.
A €1,000 bond purchase would result in a return of the amount invested, as well as interest, of €1,019.30 after tax. Savers looking for a more long-term investment can opt for a 10-year bond, which would return 2.59% after taxes (3.7% before taxes).
Both bonds come in ahead of most rates offered by Belgium's big commercial banks, which currently offer an average 0.5% to 1.5% gross on a savings account.
However, despite beating the market average, the 1-year bond is unlikely to outpace inflation. Current forecasts from the Federal Planning Bureau put inflation at 3.1% for 2026 and 2.7% for 2027.
The Federal Debt Agency © Belga / ImageGlobe / Christophe Ketels
Belgium's history with state bonds for individuals
The Federal Debt Agency issues state bonds at the end of each quarter, raising just over €260 million in March and June this year.
The net interest received on retail bonds has been climbing each quarter. For example, for a one-year bond, this has risen from 1.4% in March to 1.93% in September.
Federal Government bonds have historically been an attractive proposition for Belgian savers, as they offer guaranteed and lower-risk returns compared to other investments. In September 2023, a special one-year bond raised over €20 billion from individual investors.
These special "Van Peteghem bonds", named after the finance minister at the time, were part of a restart to Belgium's retail bonds scheme, and marked the first time one-year bonds had been issued in at least two decades.
The success in the September 2023 bond issue was also down to withholding tax being reduced to 15%. Unlike then, the new bonds being issued today carry the standard 30% withholding tax on interest.
The bonds are an alternative way, albeit small, that the government raises money to cover debt. Belgium's debt is larger than the size of its economy, with the country having a 109.1% debt-to-GDP ratio at the end of March this year – a figure that is forecast to grow to 115% by 2028.
The Federal Debt Agency expects the need to raise €59.55 billion this year to cover the gap between government spending and income, and any government loans that will be due for repayment.
How to buy the new bonds
Bonds can be purchased either directly through the Federal Debt Agency's website, which carries no fees, or through financial institutions. The Federal Debt Agency uses Itsme or other eID readers to register users and complete the transaction.
Whichever route is chosen, bonds will only be available to purchase between Wednesday 26 August and Thursday 3 September. The one-year bond will then run from 4 September to 2027.
According to the debt agency, the bonds are aimed at small investors who have Belgian nationality or individuals who are domiciled in Belgium. As always, Belgians living abroad can purchase these bonds from any country. Non-profit associations, places of worship, and some other organisations can also secure bonds, although special exclusions apply.
The minimum purchase is €100, and further bonds can be purchased in increments of €100. At the end of the bond's term, both the amount invested and interest are returned automatically.
Lenders can sell their bonds before the end of the term on the secondary market. However, if the bond is sold at a higher price than the original issue price, this opens up the possibility of paying Belgium's new capital gains tax, the agency notes.
Alternatively, if the bond is bought below the original issue price on the secondary market, capital gains may also apply once the bond comes to maturity at the end of its term due by the buyer. This is because the original investment value is what gets returned, regardless of the price purchased on the secondary market.
Those holding on to the bonds until maturity will not pay capital gains tax.
Further information can be found on the Federal Debt Agency website.
