Tax analysis & capital gains tax
When selling physical assets, such as art, watches or collectibles, it is essential to correctly assess the tax qualification of the realised capital gain. The question is whether that gain falls within normal private wealth management, or whether it is taxable as miscellaneous income due to speculative intent or abnormal management.
Three tax qualifications
In Belgium, investments can broadly fall within three tax categories.
Normal management of private wealth
Where a capital gain falls within the normal management of private wealth, it is in principle not taxable. Since 2026, however, account must be taken of the possible application of the new capital gains tax, which may result in a 10% tax in certain cases.
Miscellaneous income
Where there is speculative intent or abnormal management, the capital gain may be qualified as miscellaneous income. In that case, the capital gain is taxed at 33%, increased by municipal surcharges.
Professional income
If the transactions take on a professional character, the capital gain is taxed as professional income. In that case, the progressive personal income tax rates apply, which can quickly rise to 55%, increased by social security contributions. In certain cases, a VAT analysis may also be required.
Increased focus by the tax authorities on physical assets
The sale of physical assets such as artworks, jewellery, watches, precious metals and other collectibles is increasingly attracting the attention of the tax authorities. These assets often represent substantial value, which means that in practice they receive particular attention from the tax authorities, who in such matters frequently take a more critical stance and more readily proceed to requalification or dispute.
In practice, we see a clear increase in audits in which the tax authorities seek to requalify capital gains as miscellaneous income or professional income. What the taxpayer regards as normal wealth management is increasingly questioned by the tax authorities.
The difference is significant: a non-taxable capital gain may in one move become subject to a tax burden of 33% or even more than 50%, supplemented by social security contributions and potential VAT implications.
Our approach and expertise
Arx Aurum advises on the tax treatment of physical assets on an almost daily basis and has extensive experience in this niche field. We analyse transactions in detail and assess the tax risk of a sale in advance, so that unpleasant surprises can be avoided afterwards.
Our practice covers a broad spectrum of assets, including art, collectibles, watches, precious metals, gemstones and even horses. In doing so, we combine legal analysis with practical experience in tax audits and proceedings.
We act at every stage:
advance structuring and, where appropriate, optimisation of investments
assessment of existing files and corrections where necessary
assistance during tax audits
defence in objection and litigation proceedings
Broad support and structuring
Our support is not limited to the tax analysis alone. Where desired, we also examine the structuring of wealth and investments, for example through patrimonial companies, partnerships or foundations. In doing so, we take the long term into account, including the potential transfer to the next generation.
We can also assist clients with the practical implementation of transactions. When acquiring or selling physical assets, we analyse contracts, assess insurance aspects and advise on the most appropriate approach.
In certain matters, discretion is also an important consideration. We assist clients in structuring and executing transactions with a view to limiting visibility as much as possible, both vis-à-vis third parties and within the concrete negotiations between buyer and seller.
