Belgium implements new capital gains tax for private investors

Belgium has implemented a new capital gains tax on private investors, effective January 1, 2026. A central component of this transition is the ‘photo’ mechanism, which establishes the value of all existing investment positions as of December 31, 2025. This date serves as the new fiscal cost price, ensuring that gains accumulated prior to 2026 are not taxed. However, this creates a significant documentation requirement for advisors to prove the value of positions on that specific date.

The tax structure includes different rates depending on the nature of the gain. While a general rate of 10% is widely discussed, ‘internal capital gains’ are subject to a higher rate of 33% without any exemptions, provided the gains occur outside of professional activities but within the normal management of private assets.

In the context of mergers and acquisitions, the tax primarily remains the responsibility of the seller. While the buyer or the target company are not taxpayers, legal professionals are advised to carefully review share purchase agreements (SPAs) to ensure fiscal indemnities are correctly drafted and do not inadvertently shift the seller's personal tax liability to the buyer.