Physical gold and the new capital gains tax in Belgium

With the Act of 6 April 2026, Belgium introduced a general capital gains tax on financial assets. This marks a fundamental departure from the previous principle that capital gains realised within the normal management of private assets were, in principle, tax-exempt.

The sale of certain forms of gold is now explicitly subject to this general capital gains tax. This brings an end to a situation in which gold, long regarded as the archetype of a prudent investor, benefited from a tax exemption.

As is often the case in Belgian tax law, this shift is not without nuance. The legislator distinguishes according to the type of gold, with only investment gold being targeted. In this article, we examine the implications in more detail.

Overview of the tax treatment per type of investment

CATEGORY	General capital gains tax	Tax treatment
GOLD – PHYSICAL
Investment gold – bars & coins (.995/1000)	Subject (currency)	10% under normal management
Gold coins (>90/1000, post-1800, legal tender)	Subject (currency)	10% normal management / 33% miscellaneous income
Gold in jewellery & watches	Not subject	Not taxed under normal management
Gold as art object or ornament	Not subject	Not taxed under normal management
Industrial gold	Not subject	Not taxed under normal management
Gold ETFs & trackers	Subject (financial instrument)	10% normal management
Gold accounts & certificates	Subject (currency / financial instrument)	10% normal management
Gold swaps & futures contracts	Subject (financial instrument)	10% normal management
OTHER PRECIOUS METALS
Physical silver (bars, coins, plates)	Not subject	Not taxed under normal management
Physical copper, platinum, palladium, etc.	Not subject	Not taxed under normal management
Silver ETFs & trackers	Subject (financial instrument)	10% normal management
ETFs & trackers for copper, platinum, palladium, etc.	Subject (financial instrument)	10% normal management
DIAMONDS & GEMSTONES
Physical diamonds (loose or set)	Not subject	Not taxed under normal management
Other gemstones (ruby, emerald, sapphire, etc.)	Not subject	Not taxed under normal management

Act of 6 April 2026: Only capital gains accrued as from 1 January 2026 are taxable under normal asset management (new capital gains tax). Exemption of EUR 10,000–15,000 per year (for all financial capital gains combined, limited to the normal management regime). In cases of abnormal or speculative management, taxation as miscellaneous income remains possible (33% plus municipal surcharges).

Capital gains tax on gold

Without going into the full detail of the system, it is sufficient in practice to note that a transfer for consideration, such as the sale of investment gold, now triggers the application of the general capital gains tax. The realised gain is taxed at 10%, subject to an annual exemption of EUR 10,000, which can be increased to a maximum of EUR 15,000 through the carry-forward of unused increments of EUR 1,000.

A historical exemption applies, meaning that only the capital gain accrued as from 1 January 2026 is taxable, with the value on 31 December 2025 serving as the reference point, the so-called snapshot moment.

By way of illustration, an investor who purchased one kilogram of gold on 1 January 2010 for approximately EUR 28,000, which had a value of around EUR 118,000 on 31 December 2025 and is sold on 12 March 2026 for EUR 141,000, realises an economic gain of EUR 113,000. For tax purposes, however, only EUR 23,000 is taxable. After applying the exemption of EUR 10,000, EUR 13,000 remains taxable, resulting in an effective tax of EUR 1,300.

What is meant by gold

The new capital gains tax does not apply to gold in general but is limited to what is legally classified as investment gold, which is treated within the system as “currency”. The legislator explicitly refers to the VAT definition contained in Article 344 of Directive 2006/112/EC and its national implementation and administrative practice.

Investment gold essentially includes gold bars and wafers of a weight accepted by the gold market and a purity of at least 995/1000, as well as certain gold coins meeting cumulative conditions, namely a purity of at least 900/1000, being minted after 1800, having been legal tender in the country of origin, and having a sales price that does not normally exceed the intrinsic gold value by more than 80%.

This category currently benefits from a VAT exemption under Article 44, §3, 11° of the Belgian VAT Code, implementing Article 344 of the VAT Directive. In practical terms, this means that where gold can be acquired VAT-free, it will generally fall within the scope of the new capital gains tax.

In other words, the exemption in indirect taxation can lead to taxation in personal income tax.

Conversely, a range of gold-related assets remains outside the scope. Gold jewellery, watches, art objects and industrial gold do not qualify as investment gold and therefore remain subject to the existing regime. Capital gains on such assets remain in principle tax-free under normal management of private assets, unless the transactions are classified as speculative or abnormal. The reform therefore does not introduce a general tax on gold, but rather a targeted tax on gold as an investment instrument.

No distinction between physical gold and paper or electronic gold

In addition to physical gold, investors can also gain exposure through derivative products such as ETFs, certificates, gold accounts or other structured instruments. Certain of these products are already recognised under VAT rules as forms of investment gold where they confer a direct entitlement to gold. For capital gains tax purposes, however, the classification is more nuanced and depends on their legal nature.

Strictly speaking, such products do not necessarily fall within the same category as physical investment gold. While physical gold is treated as currency, gold ETFs, trackers and similar instruments are generally classified as financial instruments, such as units or listed securities. Other structures, such as gold loans, swaps or futures, may also fall within that category depending on their features.

In practice, this distinction is of limited relevance. Whether an investor holds physical gold directly or invests through a financial product such as an ETF or certificate, the realised gain in the private sphere is captured by the new capital gains tax. The legal classification differs, but the tax outcome does not.

Switching to paper gold therefore does not provide an escape. Financial products providing exposure to gold are also subject to the tax, albeit under a different category.

The snapshot moment and existing positions

As noted, the reform introduces a key transitional mechanism in the form of a step-up on 31 December 2025. The value at that date becomes the fiscal acquisition value, ensuring that only gains accrued from 1 January 2026 are taxed. Historical gains remain untaxed.

In addition, taxpayers may opt, until 31 December 2030, to use the original acquisition value instead. This option is particularly relevant where the asset shows a latent loss at the snapshot moment, as it allows historical losses to be taken into account. For gold positions, the tax outcome will depend on the chosen valuation basis and post-2025 evolution.

Rate, exemption and reporting obligations

The capital gain on investment gold is taxed at 10%.

An annual exemption of EUR 10,000 applies, which may increase to EUR 15,000 through the carry-forward mechanism. This is a general exemption, not specific to gold. Gains on gold must therefore be considered together with gains on other financial assets such as shares or crypto. Gains realised in the same year may reduce or exhaust the available exemption.

No withholding tax applies to investment gold. The taxpayer must declare the gain in the personal income tax return and substantiate the relevant values, namely the acquisition price or the 31 December 2025 value and the sale price. In practice, this may lead to evidentiary issues, particularly for physical gold where documentation is incomplete.

Other metals remain outside scope

The legislator has deliberately limited the tax to investment gold. Other metals such as silver, platinum or copper are not included and remain subject to the existing regime. Gains on such assets are in principle tax-free under normal management, unless classified as speculative or abnormal.

This applies to physical metals. Where exposure is obtained through financial products such as ETFs, gains are taxed as financial assets. The result is a clear asymmetry between gold and other metals.

Sale of physical gold: banking and practical considerations

In practice, the sale of physical gold raises additional issues, particularly due to stricter KYC and AML requirements. Banks often request documentation regarding the origin of the funds used to acquire the gold. For long-held or inherited assets, such documentation may be incomplete.

This can lead to delays or even temporary blocking of transactions. Even at the acquisition stage, questions regarding the source of funds may arise. Proper documentation is therefore essential.

Price discrepancies between buyers can also be significant. It is advisable to deal only with reputable counterparties and to compare offers carefully.

Conclusion

The introduction of the capital gains tax removes the historical tax advantage of investment gold. While the impact is mitigated by the snapshot mechanism and the exemption, the reform introduces new practical and evidentiary challenges. Investors should review their positions, organise documentation and plan transactions carefully.

FAQ

Are there Belgian taxes on the sale of gold?

Yes, under specific conditions. Capital gains tax applies upon sale. Holding gold does not trigger taxation. In exceptional cases, gains may be taxed as miscellaneous income.

What is the tax rate?

10%, with an annual exemption of EUR 10,000 to EUR 15,000. In exceptional cases, 33% may apply as miscellaneous income.

Is the full amount taxed?

No, only the gain, and only post-2026 gains for existing holdings.

What is the snapshot moment

The value on 31 December 2025 becomes the new tax base. Prior gains remain untaxed.

What gold is covered?

Only investment gold. Jewellery and similar items are excluded.

What about other metals?

Not covered unless held via financial instruments.

Is tax withheld at source?

No, it must be declared.

Who is subject?

Primarily Belgian resident individuals. Companies are not.

What about losses?

Losses may be offset within the system.

Is the impact significant?

Often limited due to the exemption and snapshot mechanism.

Arx Aurum

Arx Aurum is a specialised law firm focusing on gold and precious metals from both a tax and legal perspective. We advise on acquisition, holding and disposal of physical gold, as well as financial instruments.

Our work includes tax qualification, the distinction between private asset management and professional income, and the application of the new capital gains tax. We also handle AML, banking and evidentiary matters.

We assist private clients, entrepreneurs and international clients in complex cases, including cross-border transactions and structuring.

For questions or an analysis of your situation, you may schedule a consultation without obligation.