How are Foreign Investment Accounts taxed in Belgium for tax residents

A foreign investment account is taxed in Belgium based on the type of assets held within it, as Belgium has complex tax laws for residents holding foreign accounts.

As of 1 January 2026, a new, more comprehensive tax regime applies to financial assets, making it crucial for Belgian tax residents using foreign platforms to correctly declare their investments.

Here is a breakdown of how a foreign investment account is taxed for a Belgian tax resident:

1. Capital Gains Tax (as of 2026)

• 10% Tax on Profit: A 10% tax applies to capital gains realised when you sell assets (stocks, ETFs, funds) at a profit.
• €10,000 Exemptions: The first €10,000 of capital gains per taxpayer per year is exempt (indexed annually).
• No Automatic Withholding: If a foreign account, it will not withhold this tax for you. You must track your gains, calculate them (using FIFO or weighted average methods), and declare them in your annual tax return.
• Valuation Snapshot: For assets bought before 1 January 2026, only gains accrued after that date are taxable. The value of your assets on 31 December 2025 serves as the new purchase price.
• Loss Offsetting: Capital losses can be offset against capital gains within the same tax year, but cannot be carried forward.

2. Tax on Dividends (Roerende Voorheffing)

• 30% Tax: Dividends received from individual stocks or distributing ETFs/funds are subject to a 30% tax.
• Accumulation vs Distributing: If you hold accumulating funds (which automatically reinvest dividends), this tax is generally bypassed. If you hold distributing funds (which pay out dividends), you must declare them and pay the 30% tax.

3. Reynders Tax (Bond Funds)

• If you portfolio contains funds or ETFs that invest more than 10% or more in bonds, you will pay a 30% tax on the profit (capital gain) made from the bond portion when you sell.
• If the fund/ETF does not provide specific data to seperate the bond/stock portion, the full 30% tax might apply to the entire profit.

4. Stock Exchange Tax (TOB – Beurstaks)

• When you buy or sell a security in your foreign investment account, you are technically liable for the Belgian Tax on Stock Exchange Transactions (TOB), ranging from 0.12% to 1.32%.
• Because you are using a foreign investment account, you must declare and pay this tax yourself on each transaction.

5. Tax on Securities Accounts (0.30%)

• If the total value of your investment accounts (including your foreign investment account) exceeds €1,000,000 you are liable for a 0.30% annual tax on the account.

6. Tax on Speculation or Abnormal Management

• If the Belgian tax authorities deem your trading activity to be speculative or beyond normal management of private assets (e.g. day trading), you could be taxed at a 33% rate on profits rather than the standard 10%.

Summary Actions for Foreign Investment Accounts in Belgium

1. Declare the Account: You must declare the existence of the foreign investment account to the National Bank of Belgium and on your tax return.
2. Report Taxes Annually: Since Foreign Investment Accounts do not automatically withhold Belgian taxes, you must manually calculate and report capital gains, dividends, and TOB (transaction taxes) in your annual tax return.
3. Use Accumulating Funds: To minimise dividend taxes, many Belgian residents prefer investing in accumulating funds (where dividends are reinvested).

We at Leaton Wealth have various options available to you where you can open a Belgian compliant plan for your investing, doing away with the vast majority of the above, which will also be transferrable should you relocate at a later stage. Please get in touch to discuss further.