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Belgium still tax haven?:
The 1is January 2026, Belgium will tax the capital assets such as stocks, obligations, savings, gold or cryptocurrencies will tax by 10 %. Consequently, The end of an era where the rich taxpayers flocked massively to the flat country?
Belgium is a historic turning point. Meanwhile, The country. Moreover, long considered as a quasi-Taxparais due to the lack of taxation of capital gains on shares, is preparing to establish a tax on these gains. Therefore, This 10 % tax on capital gains of financial assets comes into force 1is January 2026.
Behind the displayed will of tax justice, this major change raises many questions about its economic and financial implications. Meanwhile, Several Belgian researchers, including finance professor Georges Hübner and economist Bruno Colmant, warned a series of side effects. Furthermore, The latter can slow down the development of the stock market, penalize belgium still tax haven? savers, and harm productive investment.
This reform intervenes in an international context where the taxation of heritage progresses, even in traditionally liberal economies. Similarly, So what will be the concrete economic effects of such a measure?
Historical reform in Belgium – Belgium still tax haven?
For decades, the taxation of capital gains is regularly among the tax reform projects in Belgium. In addition, Despite the evolution of government majorities, no measure has so far led. Similarly, This situation when Explained by several factors: will to maintain the country’s attractiveness for capital. In addition, difficulty implementing an effective taxation and fear of negative effects on the real economy.
The bill provides for a 10 % tax on financial asset capital gains such as listed. Furthermore, unlisted shares, bonds, monetary market instruments, derivative products, investment funds and negotiated stock market funds (ETF). However, It also concerns savings insurance contracts and placement insurance contracts, as well as cryptocurrencies, belgium still tax haven? currencies and gold. In addition, The tax would come into force on 1is January 2026.
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A general exemption of 10,000 euros is planned. In addition, Shareholders holding at least 20 % from a company will benefit from specific treatment: a progressive rate per tranche ranging from 1.25 % to 10 %, after exemption from a first bran of one million euros. However, Total exemption will be scheduled after ten years of asset holding. For example, Banks will take a tax from … For example, belgium still tax haven? the source.
Less liquidity on the markets – Belgium still tax haven?
One of the most documented consequences of the taxation of capital gains is the. In addition, reduction in market liquidity. This phenomenon, known as “effect lock-in “Was analyzed, in particular by economists Feldstein, Slemrod and Yitzhaki. They underline that the taxation of capital gains leads to a significant decrease in the volume of transactions on. the stock markets. When the sale of an asset triggers a tax event. investors are encouraged to keep their titles longer to avoid having to pay the tax.
In Belgium, the Brussels Stock Exchange suffers from a relative low liquidity compared to its European counterparts. Such a regulatory upheaval could be harmful. Any liquidity reduces the incitement of companies to finance themselves via the IPO (IPO). to the detriment of innovation and economic growth.
Administrative increase – Belgium still tax haven?
The establishment of a tax on capital assets supposes precisely monitoring their belgium still tax haven? acquisition price. their duration of detention and any losses. Imposing such complex taxation may considerably increase the administrative burden. both for individuals and for the State, all transactions must be precisely documented.
In practice. the processing of complex operations – splitsmergers, redemptions, losses postponed – could multiply tax disputes, especially for unlisted securities, where objective valuation is difficult. In 2023. in Belgium, there were nearly 20,000 tax disputes brought before the courts, of which nearly belgium still tax haven? 15,000 were postponed from the previous year and nearly 17,000 still in progress at the end of 2023.
The calculation of the detention period would also pose a major problem since it is a question of an. exemption for the detention of more than ten years. What recovery method would be used? First-in-first-out (FIFO) ? Last-in-first-out (Lifo)? So many questions to which the current law does not answer. In the first approach. capital gains would be calculated on the basis of the price of the first purchase of the assets. In the second approach Last-in-first-out (LIFO), based on the last purchase of the assets. If the investor regularly bought the title, this initial price could be largely disadvantaged. In this context, a weighted approach would be preferable.
The tax puzzle of cryptoactives
The reform also intends to apply to cryptoactive gains. The taxation of capital gains in this volatile universe is belgium still tax haven? complex. It would be difficult. if not impossible, for a state to properly control and assess transactions on cryptoactives, opening the door to tax arbitration and sub-declaration.
Read More: bitcoin and cryptocurrencies in 2025: opportunities or dangers?
Transmission of family businesses
Another often overlooked risk concerns the transmission of family businesses. In Belgium, these represent around 70 % of SMEs. They have an important heritage asset, but few available liquidity. Hence the saying ” Rich in active, poor in cash ».
The taxation of capital gains could slow down donations. successions of companies, by imposing additional costs at the time of the transfer. Hansmann in The Ownership of Enterprise Recalls that tax incentives play a key role in the sustainability of family businesses. Immediate taxation of capital gains on unlisted actions. often difficult to value objectively, can force the heirs to sell belgium still tax haven? all or part of the company to pay the tax. This mechanism is described as “destructive taxation”.
And create a domino effect: forced sales, relocations, absorption by foreign groups, etc.
Diversion to real estate
The establishment of a tax on financial capital gains. without equivalent reform on real estate, risks distorting competition between asset classes. Investors may be encouraged to favor rental real estate, already fiscally favored, to the detriment of productive shares and investments. As Thomas Piketty shows in Capital in the Twenty-First Centurythe absence of effective taxation on capital strengthens the concentration. of wealth.
This phenomenon risks further slowing the investment in productive equities in Belgium, strengthening trends already observed in recent decades. There is also a major risk of real estate bubble on the Belgian market. if this asset class became the cradle of anti-tax arbitration.
A European alignment… at the cost of attractiveness?
The bet on belgium still tax haven? the Belgian government is risky. By wanting to tax more capital gains in the name of equity. it could paradoxically create negative side effects: weakening the capacity of companies to finance themselves, impoverishing the investment offer for savers, less liquidity on the markets and pushing more capital abroad or towards less productive assets.
The taxation of capital gains on shares represents a major turning point for Belgium. which breaks with a tradition of fiscal attractiveness. If the objective of social justice is understandable, the potential economic consequences should not be underestimated. To succeed in this reform without harming its economy. Belgium will carefully calibrate its rules of application and agree to quickly correct its errors if the first negative effects are felt.
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