Belgian government reaches agreement on capital gains tax

The federal government has reached an agreement on the introduction of a capital gains tax after more than 12 hours of negotiations. The measure, which had divided the coalition’s left- and right-leaning parties, was tied to other key budget decisions. The deal now paves the way for broader government spending cuts.

The tax is expected to generate 250 million euros in 2026, increasing to 500 million annually by 2029. It will introduce a 10 per cent levy on capital gains from the sale of financial assets, with an exemption of up to 10,000 euros to protect small investors.

For individuals holding a significant stake - at least 20 per cent - in a company they wish to sell, a solidarity contribution exemption applies to profits up to 1 million euros. Above that threshold, the tax will be applied progressively.

According to Vooruit deputy prime minister Frank Vandenbroucke, the 10,000 euro exemption will remain under the new system. However, a new provision allows that if the 10,000 euros in capital gains is retained rather than immediately reinvested or spent, the exemption will increase by 1,000 euros each year, up to a maximum of five years.

^{​© BELGA PHOTO HATIM KAGHAT}

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