Dividend and Investment Tax in Belgium

Belgium taxes investment income primarily through a flat withholding tax called the roerende voorheffing (Dutch) or precompte mobilier (French), levied at source. The rules changed substantially in 2026: a capital gains tax took effect from 1 January 2026, the annual tax on securities accounts doubled, and the VVPR-bis reduced dividend rate increased to 18% from 1 July 2026. Understanding which rate applies to your income -- and which exemptions you can claim -- requires careful attention to the dates and thresholds discussed below.

For country-level context on Belgian residency and broader income taxation, see the Belgium country overview.

What withholding tax rate applies to Belgian dividends and interest?

The standard rate of roerende voorheffing on dividends and interest paid to Belgian-resident individuals is 30%, levied at source by the distributing company or paying Belgian financial institution. This rate applies to dividends from Belgian and foreign equities, bond interest, and most other investment income. The 30% withholding is generally a final tax for residents: the income does not re-enter the progressive personal income tax (IPP) base and no further assessment is made.

Interest on regulated savings accounts (gereglementeerde spaardeposito's) is an important exception: the withholding tax rate is 15% on the portion of interest that exceeds the annual exemption, and the first EUR 1,020 of such interest per taxpayer is exempt from withholding entirely for the years 2025 through 2029. The exemption is applied automatically at source by qualifying Belgian banks. (1)

The Reynders tax (taxe Reynders) is a separate 30% levy on the bond-income component of mixed investment funds when the fund holds at least 10% in debt instruments, triggered when the investor redeems or sells fund units. This applies on top of the standard regime and affects accumulation funds that blend equity with fixed income. (2)

What is the VVPR-bis reduced dividend rate and who qualifies?

The VVPR-bis regime (Verlaagd Voorheffing / Regime Precompte Mobilier Reduit) under Article 269 Section 2 of the Belgian Income Tax Code allows qualifying small companies to distribute dividends at a reduced roerende voorheffing rate. Historically the regime offered 15% withholding from the third financial year after a qualifying cash capital contribution, and 20% in the second financial year. Following the Programme Law published in the Belgian Official Gazette on 1 June 2026, the VVPR-bis rate increased to 18% for dividends distributed or made payable from 1 July 2026 onwards. Dividends distributed on or before 30 June 2026 retain the 15% rate. (3)

To qualify under VVPR-bis a company must: (a) be classified as a small company under Article 1:24 of the Belgian Companies and Associations Code (broadly: turnover below EUR 11.25 million, balance sheet below EUR 6 million, fewer than 50 employees on average -- two of three criteria must be met); (b) have issued the shares in exchange for a new cash contribution after 1 July 2013; (c) hold the shares in registered form; and (d) not be listed on a regulated market. The three-year waiting period before the reduced rate applies runs from the financial year of the contribution. The intermediate 20% rate for contributions made from 1 January 2026 onwards is abolished; such shares move directly from the 30% standard rate to the 18% VVPR-bis rate after three years. (3)

How does the EUR 833 dividend exemption work?

Belgian-resident individuals may reclaim roerende voorheffing withheld on the first EUR 833 of qualifying dividends received in income year 2025 or 2026 (assessment years 2026 and 2027 respectively). The exemption is not applied at source: withholding is deducted in the usual way, and the taxpayer claims a credit on their annual personal income tax return (aangifte personenbelasting / declaration IPP) under codes 1437/2437. The maximum refund is EUR 249.90 per year (EUR 833 at 30%). If the taxpayer owes no personal income tax, the deducted amount is refunded in cash. (4)

Qualifying dividends include ordinary dividends from Belgian and foreign equities held directly, including those from approved cooperative societies and social-purpose enterprises. Excluded are dividends received via legal constructs (constructions juridiques / juridische constructies), dividends from collective investment institutions, and common investment fund distributions. Where dividends from different shares are subject to different withholding rates, the taxpayer may choose which dividends to apply the exemption to, subject to the EUR 833 ceiling. (4)

How are foreign dividends taxed -- and what relief is available?

Belgian-resident individuals are taxable on worldwide income. Foreign dividends must be declared in the annual personal income tax return and are taxed at 30% on the gross amount. Where a double taxation treaty (DTT) caps the foreign source-country withholding -- typically at 15% for portfolio dividends under most Belgian treaties, though rates vary -- the Belgian resident can in principle credit the foreign withholding against Belgian tax. In practice, because the Belgian 30% rate is assessed on the gross dividend and the foreign withholding credit is limited to the treaty rate, many cross-border dividend flows suffer double taxation. A Belgian Supreme Court ruling confirmed that French withholding taxes on French equities can be partially credited, with a five-year lookback window for refund claims; the scope of that relief for other treaty partners depends on the applicable treaty and Belgian administrative practice. (2)

Belgian-source dividends distributed to non-residents are subject to 30% roerende voorheffing, with treaty-reduced rates available to qualifying non-resident investors upon application with proof of residence. Non-residents do not benefit from the EUR 833 annual dividend exemption.

What is the annual tax on securities accounts?

Belgium levies an annual tax on securities accounts (taks op de effectenrekeningen / taxe sur les comptes-titres) at 0.30% of the average value of all taxable financial instruments held in qualifying accounts, where that average exceeds EUR 1 million. The rate was doubled from 0.15% to 0.30% by the Programme Law published on 1 June 2026, effective for reference periods ending from that publication date. (5)

The taxable base is calculated using four quarterly reference dates: 31 December, 31 March, 30 June, and 30 September. If the average value across those dates in a reference period exceeds EUR 1 million, the full average value (not just the excess) is taxed at 0.30%. A protective cap prevents the tax from exceeding 10% of the amount by which the taxable base exceeds EUR 1 million, protecting accounts marginally above the threshold from disproportionate taxation.

Belgian tax residents are subject to the tax on worldwide qualifying securities accounts. Non-residents are subject to the tax only on Belgian accounts, though non-residents who are tax residents of a country that has concluded a comprehensive double taxation treaty with Belgium covering both income and wealth taxes (including the Netherlands, Germany, and Switzerland) may claim exemption, provided all account holders qualify. Belgian intermediaries withhold and remit the tax automatically. Investors holding accounts with non-Belgian intermediaries must self-declare. (5)

What capital gains tax applies to Belgian investors from 2026?

Belgium did not tax capital gains on privately held financial assets for most investors prior to 2026. That changed when Parliament enacted a new capital gains tax on 2 April 2026, applying retroactively to gains realised from 1 January 2026. The framework distinguishes three categories of gain. (6)

For most individual investors, the relevant category is Category C -- gains on ordinary financial assets including listed equities, ETFs, bonds, crypto-assets, and certain insurance contracts with an investment component. The rate is 10% on gains above an annual exemption of EUR 10,000 per taxpayer (indexed annually). Where the full EUR 10,000 exemption is not used in a given year, the unused balance may be carried forward for up to five years, increasing the effective exemption ceiling to a maximum of EUR 15,000 in years where no prior carryover has been used. Gains realised on assets as valued on 31 December 2025 are grandfathered: only post-2025 appreciation is taxable. Belgian banks and intermediaries withhold the tax automatically for Belgian-account holders, though taxpayers could opt out before 30 June 2026. (6)

Category B covers gains on substantial participations (20% or more of voting rights). The first EUR 1 million of gain per taxpayer over a rolling five-year period is exempt. Above that, gains are taxed on a graduated scale from 1.25% on the first EUR 2.5 million to 10% above EUR 10 million. Sales to non-EEA acquirers attract a flat 16.5% on the full gain above the EUR 1 million exemption. Category A covers internal transfers (disposing of a company's shares to an entity controlled by the same family group) and is taxed at 33%.

A qualified tax professional can assist with applying the correct category and calculating any carryover exemption that may be available to you.

For detailed treatment of the capital gains rules including the exit tax on emigration, see the companion page on capital gains tax in Belgium.