Agreement on capital gains tax: an overview of the new ground rules

After months of negotiations, a preliminary draft is on the table for a capital gains tax on financial assets, scheduled to take effect Jan. 1, 2026. This regulation targets capital gains realized outside the professional sphere and introduces a so-called "solidarity contribution," which has already given rise to considerable political and social controversy.

Value-added tax: what's in a name?

The so-called 'solidarity contribution' of 10%applies to capital gains which are realized at 'financial assets' in the hands of:

• Natural persons subject to the personal income tax.
• Legal entities subject to the legal persons tax (including NPOs and private foundations).

Associations that can receive tax-deductible donations are not subject to this capital gains tax.

What financial assets are subject to capital gains tax?

• Stocks, bonds (unless the Reynders tax applies);
• ETFs, derivatives, currencies and investment gold;
• Certain Branch 21, Branch 23 and Branch 26 insurance products;
• Crypto-assets (incl. NFTs if investment function).

What are the exemptions and exceptions?

• Exemption for pension products (second and third pillars).
• No double taxation if already taxed as movable or professional income
• Donations
• Inheritances
• Input to marriage
• Internal reorganizations from ICBs

So-called capital gains beyond the "normal" management of private assets remain subject to a capital gains tax of 33% (e.g., speculative capital gains on shares).

Footfall exemption up to 15,000 euros

Under the general capital gains tax regime, the legislature provides for a annual exemption of 10,000 euros to realized capital gains on financial assets. This amount is indexed annually.

If the taxpayer makes no or only partial use of this exemption in a given taxable period, a portion of up to 1,000 euros are transferred to the subsequent taxable era.

However, this transferability is subject to a double restriction:

• On the one hand per year only 1,000 euros be transferred,
• and on the other hand, it may cumulative amount of the exemption never exceed 15,000 euros.

When for five consecutive years no added value is realized, the taxpayer may enjoy an exemption in the sixth year from the maximum amount of 15,000 euros.

In the case of investments from the common equity within the statutory system, each spouse can claim this exemption separately, resulting in a joint maximum exemption of 30,000 euros.

The 'substantial interest': equity holdings as of 20%

Shareholders who at least 20% hold in a company have a so-called 'significant importance' and can appeal to a specific exemption scheme.

This exemption is assessed individually by shareholder and applies for a period of five years. Thus, the exemption should be viewed as a backpack that the taxpayer can use over a five-year period.

When a shareholder owns at least 20% of the shares in a company, the first 1 million euro capital gain exempt. The amount in excess of the exemption is taxable to progressive rates up to and including 10%:

• First tranche of 1,000,000 euros: exempt
• Added value between 1,000,000 and 2,500,000 euros: 1.25% capital gains tax
• Added value between 2,500,000 and 5,000,000 euros: 2,50% capital gains tax
• Added value between 5,000,000 and 10,000,000 euros: 5% capital gains tax
• Added value starting at 10,000,000 euros: 10% capital gains tax

How is taxable capital gain calculated?

Basic principle

As a rule, the taxable capital gain results from the positive difference between the sales price received and value as of December 31, 2025.

During a five-year transition period can the original purchase price as reference point serve, should it exceed the value on Dec. 31, 2025. After the taxable capital gain was determined, the deduct any losses on financial assets be brought within the same category and within the same year.

Listed financial assets

For the valuation of listed financial assets, the closing price at December 31, 2025 as a reference point or the original acquisition cost (during the 5-year transition period), should it prove higher.

Unlisted companies

For the valuation of unlisted companies several methods are available:

• Value at transfer between independent parties in 2025;
• Value at creation or capital increase in 2025;
• Valuation that is the result of a contractual valuation formula before Jan. 1, 2026;
• Equity + (4 x EBITDA) of the last completed fiscal year before Jan. 1, 2026;

In addition, for unlisted companies, there is the possibility of using a independent valuation (prepared by December 31, 2026 by a certified public accountant or auditor). Note that the administration may make such independent valuation dispute.

Example sale of shareholding ≥ 20%

• Sofie sells during the course of 2026 her company for 8 million euros.
• 15 years ago, Sofie and her business partner founded an SME. Initially, they each paid a contribution of 10,000 euros. The initial initial capital was thus 20,000 euros, making both a participation of 50% persist.
• Retrieved from December 31, 2025 the company is valued by a certified public accountant at 5 million euros.
• During 2026 Sofie and her business partner are approached by an industry peer who is willing to 8 million euros on the table for the enterprise.

Sofie owns 50% of the shares. Thus, there is a substantial interest. Consequently:

• Capital gains realized: 3 million euros = 8 million euros (sale price) - 5 million (photo at 31/12/2025)
• Realized capital gain per shareholder: 1.5 million euros (50% of 3 million euros)
• Exempt capital gains per shareholder: 1 million euros
• Taxable capital gain per shareholder: 500,000 euros at 1.25% capital gains tax, so 6,250 euros
• Total tax burden per shareholder: 0.42%

Withholding and reporting

• Withholding tax of 10% with Belgian intermediaries (not for internal or significant capital gains).
• Opt-out possible provided notification to financial institution.
• Reporting requirement for intermediaries in the case of internal or significant capital gains.
• During the same year, losses on financial assets deductible Of any capital gains within the same category.

The proposal to purchase shares that more than ten years were arrested to be released was permanently taken off the table.