BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
A general taxation on capital gains at a rate of 10% applies to capital gains realised from the transfer against consideration of financial assets. The new regime (see 1.1 Tax Regimes ) applies to capital gains realised as of 1 January 2026 and only concerns the increase in value of the assets after that date; histori - cally accrued capital gains would not be targeted by this new capital gains tax. The new regime applies to capital gains realised in the normal management of a taxpayer’s private wealth. By contrast, gains realised outside the scope of normal private asset management may be taxed as miscel - laneous income, at 33%, plus local surcharges, while gains arising from professional activities are taxed at the progressive personal income tax rates. Accord - ingly, tax planning often focuses on structuring invest - ments and transactions so that they remain consistent with the concept of normal private wealth manage - ment. Relevant factors include the investment horizon, financing methods (particularly the use of leverage), trading frequency, the degree of organisation and pro - fessionalism, etc. The anti-abuse tax rules introduce limitations, under which the tax authorities may disregard legal acts where the taxpayer frustrates the objectives of the tax legislation without valid non-tax reasons. 1.4 Pre-Immigration and Exit Planning Since the introduction of the new capital gains tax regime for financial assets from 1 January 2026, Bel - gium has also introduced an exit tax for private indi - viduals. If qualifying financial assets are disposed of within two years following emigration, Belgium may levy an exit tax at the rate of 10%. The taxable gain is determined by reference to the fair market value of the assets at the date the taxpayer ceases to be a Belgian tax resident. 1.5 Taxation of Real Estate Owned by Non- Residents and Non-Citizens A specific property tax is assessed on cadastral income (ie, a deemed rental value attributed to the property by the tax authorities). Immovable incomes are also taxed at progressive rates, which generally range between 25% and 50%.
The immovable incomes correspond to the “indexed cadastral income” if the property is rented out to peo - ple who do not use it for business purposes. In that case, a non-resident taxpayer is only required to file a tax return if their property income exceeds EUR2,500. Capital gains on Belgian real estate are taxable, with rates depending on the type of property. Capital gains realised on buildings within five years of acquisition are, in principle, taxed at 16.5%. Capital gains realised on Belgian land are taxable at a rate of 33% in the first five years, and at 16.5% between the fifth and eighth years. After this holding period of five/eight years, the realised capital gains are tax exempt. 1.6 Stability of Tax Laws Belgium has had a stable tax system for many years, but there have been more significant tax reforms in recent years. Most of the time, the same topics of dis - cussion come up again when elections are held and a new government is formed. Sometimes, it takes sev - eral governments before a reform is finally adopted; reforms are therefore often unpredictable. 1.7 Transparency and Increased Global Reporting All legislation concerning the exchange of information, the ultimate beneficial owner register, DAC 6 and com - pliance measures is in force and applied in Belgium. These measures have led to an increase in requests for information from the tax authorities, but this does not have a direct impact on existing planning tech - niques in Belgium. 2. Succession 2.1 Cultural Considerations in Succession Planning Family profiles are starting to diversify, as both small and large families become increasingly aware of the importance of planning. There is a desire to pass on assets earlier than in the past. Moreover, planning is sometimes more complex in the case of reconstituted families. Because of the favourable tax rates applicable on gifts (especially in relation to movable assets and family
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