Last February, the Arizona government announced various tax measures, including the introduction of a capital gains tax, referred to as a “solidarity contribution”.
The draft bill for this tax (no longer referred to as a “solidarity contribution”) was leaked this weekend. It is a working document (relatively advanced), but nothing is final yet. However, it’s worth highlighting the key points of the proposal, which will likely shape the final law on this tax.
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Entry into force
The taxation of capital gains is expected to come into effect on January 1, 2026. This will clearly apply to gains realized after this date.
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Scope
a. Personal scope
This tax concerns Belgian tax residents who hold shares, participations, or financial assets. In cases of dismemberment of ownership, the bare owners will be liable for the tax. Practically speaking, the tax will be withheld at source by financial institutions established in Belgium, similar to the withholding tax. If it is not withheld, the gain must be included in the tax return and will be assessed separately, as is the case with foreign income.
Non-profit associations and foundations are also subject to this tax.
b. Material scope
Until now, capital gains realized as part of the normal management of private wealth were exempt.
In the draft bill, the government takes a broad approach to taxing all types of disposals of shares, participations, and financial assets.
The following financial assets are specifically targeted:
- Financial instruments;
- Life insurance contracts;
- Crypto-assets;
- Currencies, including banknotes, scriptural and electronic money, digital currencies, and gold (whether or not represented by securities).
c. Equivalent events
Three situations are treated as asset disposals:
- Liquidation of a life insurance contract (branches 21, 23, or 26);
- Relocation of tax residence outside Belgium;
- Donation of assets to a non-resident.
The government is therefore introducing a new exit tax (as a reminder, the first was introduced with the Caiman tax reforms).
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Tax base
Capital gain is defined as the positive difference between the sale price of the shares or assets and their acquisition value.
The text states: “by acquisition value, we mean the price at which the taxpayer or their predecessor acquired the asset for consideration.” In the case of a gift, this refers to the time the donor acquired the asset.
However, the draft introduces an exception: the acquisition value is deemed to be the asset’s value as of December 31, 2025, unless the taxpayer can prove a higher acquisition value. Thus, historical gains would be exempt.
For listed assets, the closing price on December 31, 2025, can be used. For unlisted assets, the acquisition value can be determined by:
- The price applied in a sale of the same assets in 2025 between independent parties, or during a capital increase or company incorporation;
- A valuation formula set in a contract or binding offer;
- The value of equity plus four times the EBITDA, or a value determined by an auditor or certified accountant.
For life insurance contracts, the taxpayer may choose the higher of the total premiums paid or the reserve value.
Losses realized on the same category of assets by the same taxpayer in the same tax year will be deducted from capital gains.
In the event of becoming a Belgian tax resident, the acquisition value is deemed to be the market value of the asset on the day of arrival.
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Tax rates
Capital gains realized from January 1, 2026, onward will be taxed at 10%.
There are certain exemptions or reduced rates:
– Exemption on the first €5,940 of gains (this amount may be indexed);
– A 10-year holding period (120 months) would grant an exemption (though the government is divided on this point);
– For significant participations (20%), a progressive rate applies:
- First €600,000: exemption
- €600,000 to €1,500,000: 1.25%
- €1,500,000 to €2,950,000: 2.25%
- €2,950,000 to €6,000,000: 5%
- Above €6,000,000: 10%
Once again, let’s keep in mind that this is a draft bill at this stage !