Federal coalition agreement 2025: tax reform on the drawing board

The De Wever I government, which enjoys broad democratic support on both sides of the language border, has announced its 2025-2029 federal coalition agreement. The core priority? Stabilizing Belgian public finances and preventing our country from recording the largest budget deficit in Europe. To that end, the agreement announces sweeping fiscal reforms. Two measures stand out: the introduction of a capital gains tax on financial assets, the so-called solidarity contribution, and a fifth round of tax regularization. Although the legislative elaboration has yet to follow, Dirk Merckx, partner at NOMA, outlines the outlines of these reforms.

Capital gains tax 2025: what will change?

The federal government wishes to introduce a 10% tax on normal capital gains on financial assets. The existing arrangement whereby abnormal capital gains are taxed at 33 % outside the professional sphere will be retained.

• What is covered by the tax?
  The coalition agreement talks about “financial assets,” which at least includes stocks, bonds, trackers, equity funds, options and crypto investments.
• What will remain exempt?
  Capital gains on real estate remain exempt. The existing rule, where an individual can sell property tax-free after eight years of ownership, remains in place.
• Possible exemption after ten years?
  Although not explicitly stated in the coalition agreement, it is suggested that an exemption after ten years for financial assets be considered, analogous to the scheme for real estate.

Who will escape? Exemptions for retail investors and historical capital gains

The law provides an initial exemption in which capital gains up to 10,000 euros per person per year are exempt from taxation. This provides a breathing space for smaller investors and prevents an overly broad tax burden.

In addition, a second exemption applies to so-called historical capital gains. The legislator deliberately chooses to take into account only the value of financial assets on the date the new regulations enter into force. A retroactive tax is thus explicitly excluded.

Nevertheless, many open questions remain. For example, it is unclear whether it will be possible to work with a valuation report to anchor the initial value of financial assets. Further legislative elaboration will have to clarify this.

Fifth round of tax regularization: legal certainty with higher rates

The coalition agreement confirms the arrival of a new round of tax regularization, which will be further developed in consultation with the regions and the federal government.

The previous regularization option, EBA-Quater, expired on Dec. 31, 2023. Since then, only criminal regularization via amicable settlement was possible, but in practice this proved hardly workable. The prosecution was struggling with a backlog and a lack of unanimity on the approach, which resulted in files being held up. The situation was further complicated by the tightening of the Money Laundering Act of Feb. 5, 2024, which further raised the threshold for voluntary reporting.

This reform again offers taxpayers a realistic way out, but comes with stricter conditions. Rates will be increased to 30% for unassessed capital and 45% for aged capital, with a possible exception for taxpayers who can demonstrate good faith.

NOMA, sharp eye on tax reforms

The measures announced are only the first outline of a thorough fiscal redesign. Exactly how the new rules will take shape depends on the legislative elaboration in the coming months. NOMA's lawyers are closely following the evolutions and will inform you of the concrete impact in a timely manner.