Arizona Coalition Agreement: Belgium announces capital gains tax
On January 31, 2025, the five Arizona parties reached a coalition agreement. For the first time in Belgian history, a general tax on financial capital gains is planned.
5 February 2025 · 7 min
A historic coalition agreement
On Friday January 31, 2025, the five parties of the Arizona coalition — N-VA, Vooruit, MR, CD&V and Les Engagés — reached an agreement on policy for the coming five years. One of the most discussed measures: the introduction of a tax on financial capital gains, described by the government as a 'solidarity contribution'.
It marks a historic shift. Belgium was one of the last European countries where capital gains on shares were fully exempt for individuals — at least within the framework of 'normal management of private assets'. That era is now coming to an end.
The contours of the new tax
The coalition agreement outlines the broad strokes. The standard rate is 10% on gains from financial assets. An annual exemption of EUR 10,000 per person protects small investors. For shareholders holding at least 20% of a company — a 'substantial shareholding' — progressive rates apply with an exemption up to EUR 1,000,000.
Progressive brackets range from 1.25% (between EUR 1M and 2.5M) to a maximum of 10% (above EUR 10M). Internal capital gains — sales to a company controlled by the seller — are taxed at 33%.
What remains unclear
The agreement contains principles, not legal texts. Many crucial details still need to be worked out: the exact entry into force, the determination of the reference value for existing portfolios, the role of financial institutions in withholding, and the treatment of losses.
What this means for entrepreneurs and investors
For SME owners considering a future sale, this is a fundamental change. Anyone contemplating an exit should follow developments closely and seek professional advice in good time.