New Belgian Capital Gains tax: Implications for expatriates

The Arizona coalition agreed to introduce as from January 1, 2026, a new 10% tax on capital gains realized by individuals on certain financial assets (shares, crypto-assets, foreign currencies, insurance contracts, etc.). An annual exemption of EUR 10,000 will be provided: only net capital gains exceeding this amount will actually be subject to taxation.  

Capital gains realized outside the normal management of someone’s private assets, remain subject to a 33% taxation (speculation).

While the main features of this announced reform have been outlined in our previous tax alert, this alert addresses the practical implications of the new rules for taxpayers currently on an international assignment in Belgium as well as individuals who are about to undertake an international assignment in the near future either to or from Belgium.

Please note that this alert is based on unofficial draft legislation from social media. The official draft has not been released.
 

1. Tax resident on January 1, 2026: What if You Are Already Living in Belgium?

Historical capital gains will remain exempt. For sales after 1 January 2026 this means that the (deemed) fair market value of the financial asset per 31 December 2025 will qualify as the acquisition value for purposes of the capital gains tax.

Example:

• A taxpayer has been a Belgian tax resident since 2023.
• The taxpayer holds shares in Company X, purchased in 2015 for €100, which are worth €300 on December 31, 2025.
• The taxpayer sells these shares in 2027 for €350.

The taxable base will therefore be: €350 (sale price) – €300 (value on 31/12/2025) = €50.
As a result, only €50 will be subject to the 10% tax, not the entire capital gain of €250.

Historic Capital Gain Correction?

However, if the historic acquisition value is higher than the value on December 31, 2025, the taxpayer may— subject to proper justification —use the acquisition value to calculate the realized capital gain. This option is only available for capital gains realized between January 1, 2026, and December 31, 2030.

Example:

• A taxpayer has been a Belgian tax resident since 2023.
• The taxpayer holds shares in Company X, purchased in 2015 for €100, which are worth €90 on December 31, 2025.
• The taxpayer sells these shares in 2027 for €95.

The taxable base will therefore be nihil as the acquisition value of €100 (instead of the value on December 31,2025) is higher than the sale price of €95.

What About Capital Losses?

Capital losses realized on financial assets covered by the tax may be offset against taxable capital gains, provided they relate to the same category of assets and occur within the same tax period. For the purpose of calculating the loss, the reference value is also the value on December 31, 2025. It is not possible to use another valuation.

The taxable base is determined based on the net result of capital gains and capital losses on the relevant assets. If this result is negative, no tax will be due, but the loss cannot be carried forward to subsequent years.

Are Capital Gains on Foreign Assets Also Taxable?

Capital gains on financial assets—such as shares, bonds, ETFs, or other investments—are subject to the tax, including when these assets are held in foreign accounts. For assets held in Belgium, the tax will generally be calculated and withheld by the financial institution (unless an opt-out has been elected for by the individual). For assets held abroad, it is up to the taxpayer to determine the taxable amount (gains, losses, and the EUR 10,000 exemption).

For gains realized in a currency other than the euro, the total gain must be determined using the exchange rate in effect on the dates of acquisition and disposal of the assets.

Are Currency Gains Also Taxable?

The 10% tax can also apply to gains realized on currencies.  However, this will not apply in case currencies are transferred between different accounts of the same taxpayer.  The latter will not be qualified as a realization of a capital gain.

Could Foreign Life Insurance Contracts and Savings or Pension Products Be Affected?

It is explicitly mentioned that group insurances, life insurances and pension savings are excluded from the capital gain tax of 10%.  The question remains whether capital gains related to life insurance policies, savings products, or pension plans taken out abroad may also fall within the scope of the new tax.
 

2. Planning to Leave Belgium in 2026 or later?

The law provides that transferring one's tax residence outside Belgium will be treated as a deemed sale of assets. As a result, the taxpayer will, in principle, be liable for the tax on unrealized capital gains, even if the gain is not actually realized through a sale.

However, some relief measures apply:

• An automatic deferral of the exit tax payment is granted in the event of relocation to an EU Member State, an EEA State, or a country with which Belgium has signed a double tax treaty including an exchange of information clause.  If the taxpayer does not realize the capital gain within 24 months after departure from Belgium, no exit tax will be due.
  
  In the event an exit tax is imposed (e.g., when the sale occurs within the 24-month period after departure from Belgium), it is essential to ensure and double-check that the right of taxation is effectively allocated to Belgium under the applicable double tax treaty between Belgium and the country of relocation.
   

• If the taxpayer moves to a non-EU/EEA/non-treaty country, a deferral can be requested by the taxpayer and under the condition that sufficient guarantees for a later payment can be guaranteed (e.g., bank guarantee). A yearly confirmation of the situation needs to be provided by the tax authorities
  
  
• No exit tax payment is due if the taxpayer returns to Belgium within 24 months of departure. 
   

3. Moving to Belgium in 2026 (or Later)?

For individuals who become Belgian tax residents from 2026 onwards, the market value of their financial assets on the date of their arrival will be considered as the acquisition value.

This means that any capital gains accrued before arrival will not be taxable in Belgium. Only the capital gains generated after arrival may be subject to the new 10% tax.

Example:

• A person moves to Belgium on April 15, 2026.
• This person holds shares purchased in 2015 for €100, valued at €300 on their arrival date.
• In 2028, this person sells the shares for €380.

The taxable capital gain will amount to €80 (€380 – €300).

An important note is that new residents arriving partway through the year may only benefit from a prorated portion of the EUR 10,000 exemption in their first year of residency.
 

4. Free Shares and Stock Options: Also Affected

The new capital gains tax will also apply to gains realized upon the disposal of certain shares or options received as part of an employment package. However, the tax will only apply to the portion of the gain that is not already taxed as employment income.

Example:

• In 2026, a taxpayer is granted a stock option with a seven-year vesting period.  Taxation at grant occurred as professional income.
• The option allows the purchase of a share at an exercise price of €10.
• The option becomes exercisable in 2031, at which point the share is valued at €20.
• The taxpayer decides not to exercise the option immediately and waits until 2033, when the share is worth €23.
• The share is eventually sold in 2034 for €26.

For the purpose of calculating the capital gains tax, the acquisition value will be considered to be €23 (the value at the time of exercise in 2033). The taxable capital gain will therefore be €3 (€26 – €23).
 

5. What About Non-Resident Taxpayers?

As a general rule, individuals who are not Belgian tax residents will not be subject to the new Belgian capital gains tax.
 

6. How EY Can Support You

This tax reform represents a significant change for expatriates. It raises complex questions relating to wealth planning and changes of residence.

Our teams can assist you to:

• Analyze your situation (arrival, departure, mobility) and assess the tax impacts of the new rules;
• Evaluate the consequences for your financial assets (foreign accounts, currencies, insurance contracts, crypto-assets, etc.);
• Determine the correct tax treatment of your free shares, stock options, and other employment-related plans;
• Anticipate the effects of the reform in case of relocation or disposal of assets.

Please do not hesitate to contact your usual EY representative to clarify any questions you may have regarding the introduction of this new tax.