Foreign nationals living in Belgium or planning a relocation need to make informed decisions about the best ways to manage their investments, especially given reforms to the Belgian tax system that mean a new capital gains tax will apply to gains made from financial assets from January 2026.
It has always been important to review tax levies on investment incomes, including interest and dividends. Still, in the modern tax climate, and with changes to the tax regulations in many countries, including the UK, it’s now paramount that expats review their portfolios before they move.
Chase Buchanan Private Wealth Management, the global specialists in financial advisory support for expats, has created this guide to explain what the new tax rules are, how they’ll impact Belgian tax residents, and what that means for investment planning.
Clarifying Changing Investment Taxation Rules in Belgium
Whenever a new tax is introduced or a reform announced, the first step is to take stock of how this affects your own circumstances and plans. Although tax residents in Belgium who receive earnings from financial investments may be exposed to higher taxation, this will only apply from 1st January next year and onward, excluding any historical gains.
From this date, capital gains tax of 10% will apply to taxable gains made on financial assets, including foreign currency holdings, insurance products, company shares and cryptocurrencies.
However, tax is only payable if the gain exceeds an annual exemption threshold set at €10,000, and this is only charged on net profits.
The Belgian tax authorities will calculate the net gain based on fair market value as of 31st December 2025, which could prove beneficial for those in the otherwise unenviable position of disposing of or cashing in investment assets due to a decline in value since the original investment was made.
Capital losses can also be offset against any liability that arises, provided the losses relate to an investment within the same asset category and in the same tax period.
There are, no doubt, complexities for expats, as with many tax management matters, because anyone living permanently or long-term in Belgium as a tax resident might also need to pay capital gains on the sale or transfer of financial investments held outside of the country.
If, for instance, an expat resident has investments in different currencies and jurisdictions, and is obligated to report gains in Belgium, they will need to seek professional advice to ensure the gain is calculated correctly, to avoid errors or inadvertently paying more tax than necessary.
Budgeting for Belgian Investment Taxes as a Foreign National Resident
Depending on the types of assets you hold, there are alternative taxes you may need to budget for, because non-financial investments like real estate will remain subject to Belgian taxation for tax residents. There is also the potential to be charged a 33% capital gains tax on speculative investments or those deemed as outside of the scope of normal private wealth management.
Some of the other taxes that may apply to your investments include the précompte mobilier, a dividend tax normally paid at 30%, with a €859 annual exemption for the current tax year.
Tax residents in Belgium pay a 0.15% annual tax on securities accounts valued at over €1 million, 30% capital gains, also called the Reynders tax, on funds with at least 10% invested in bonds, and capital gains tax rates of 16.5% to 33% on profits made from the sale of investment properties.
Understanding all of these taxes, how they will apply to your investments, and taking action to balance and diversify your portfolio can make a big difference to your overall tax burden, particularly where you can take advantage of reliefs or allowances now that will lower your ongoing liabilities in Belgium.
The Focus of Personalised Investment Management Advice for Belgian Expat Residents
Aside from the reforms we’ve discussed thus far, there are numerous decisions that new expats will need to make, especially where they hold assets like ISAs, which are tax-efficient in the UK but become much less so when the holder relocates.
In most cases, we recommend reinvesting funds held in an ISA, as expats cannot make further contributions and lose their entitlement to UK tax reliefs when they become overseas tax residents. This means alternative savings or investment products are likely to be more beneficial.
Likewise, other cross-border investments might become subject to exchange rate fluctuations, making a passive, stable income less reliable, or they could be difficult to access from abroad. This is one of many reasons we always suggest reviewing your investment portfolio as early as possible, and ideally before you complete a move.
Wealth preservation and growth should always be the primary goal, but our wealth managers also need to consider your plans and expectations, as well as elements like your risk tolerance and the time until you plan to draw on your investments, all of which will have a direct impact on the suggestions we make.
That is because expats relocating to Belgium to retire, or those intending to retire shortly after their move, will have very different objectives than those moving to take up an employment offer.
Retirees must also consider their retirement assets and whether to transfer or restructure UK-based pension funds. This is a significant decision, because there are several potential ways to transfer pension schemes, including well-known options like SIPPs and ROPS, but factoring in transfer taxation, the net value of projected pension incomes, and how they will be taxed in Belgium is essential.
Support From the Belgian Expat Taxation Specialists
We hope this guide has clarified how the new Belgian investment tax will work and given you an insight into the other taxes and levies you’ll need to account for once you relocate to Belgium.
However, if you are already a Belgian tax resident, confused about your tax reporting obligations, or need advice about whether restructuring financial assets now would be beneficial, you are welcome to get in touch.
