Antoine Bouvy
13 Feb 2026
Capital gains tax: what impact will it have on Belgian investors with an income portfolio?
The new capital gains tax is causing concern among many Belgian investors, particularly those who already live off, or plan to live off, an annuity portfolio. The central question is simple but crucial: for a portfolio invested in capitalization ETFs, does the introduction of a 10% tax on capital gains call into question the long-term income strategy? For most Belgian investors who live off an income portfolio, the impact of the capital gains tax remains limited. It depends mainly on the amount of the income and the growth rate of the portfolio, not on the initial capital.
How does the new capital gains tax work in Belgium?
In Belgium, the government has decided to introduce a 10% tax in 2026 on gains realized on the sale of financial assets by individuals, including shares, bonds, funds and ETFs. Only gains actually realized on a sale or redemption are taxed; unrealized capital gains remain untaxed as long as there is no sale.
The reform provides for a basic annual exemption of 10.000€ in capital gains per Belgian taxpayer, which is index-linked. Under certain conditions, this amount may be gradually increased to 15.000€ if no capital gains are realized for more than five consecutive years, which partially protects small and medium-sized investors with a long-term focus.
At the same time, existing rules remain in force, in particular the 30% “Reynders” tax on capital gains on the bond component of certain bond funds and ETFs, and the 30% withholding tax on most dividends.
What is an annuity portfolio?
An annuity portfolio is an investment portfolio structured to generate regular income, for example 1.000€ per month in addition to the statutory pension.
There are two main approaches to generating this annuity:
- With ETFs or distribution funds, the dividends paid by the funds directly constitute the income.
- With ETFs or capitalization funds, dividends are automatically reinvested in the fund, and the income is obtained through successive sales of units.
In this article, we deliberately focus on capitalization ETFs, which is the choice made by Easyvest for annuity portfolios, for which a capital gains tax may apply when part of the portfolio is sold to generate the annuity. However, the impact of this 10% tax is still lower than the 30% withholding tax on financial income from distributions, which further enhances the tax optimization benefits of an accumulation ETF. This advantage is further reinforced by the annual exemption of 10.000€.
Easyvest made this choice because it is fiscally optimal, as the impact of a 10% tax on capital gains remains lower than a 30% withholding tax on financial income from distributions. This advantage is further reinforced by the annual exemption of 10.000€.
Annuity and growth rate as key elements, not initial capital!
One key point to bear in mind is that the impact of capital gains tax on an annuity portfolio depends primarily on two factors:
- the size of the annuity relative to the portfolio,
- and the average growth rate of the portfolio over time.
The absolute amount of assets is less important than the proportion of capital gains realized each year to finance the annuity. If a moderate annuity is withdrawn from a portfolio that is growing at a reasonable rate, the share of capital gains realized each year will remain well below the 10.000€ exemption threshold for a long time, which significantly reduces the tax bill.
The three scenarios below illustrate this logic using concrete figures.
Scenario 1: moderate portfolio, 5% growth per year
In the first scenario, the investor has 1.000.000€ in capital, invested in a diversified risk 5 portfolio with Easyvest, i.e. a "medium" type portfolio composed of 50% equities and 50% bonds, with an expected annualized return of 5%. The investor wishes to draw an annual income of 24.000€, or 2.000€ per month.
During the first year, the share of capital gains generated is limited to the annual return, i.e. 5%. On 24.000€ withdrawn, this represents a very limited amount that remains well below the annual exemption of 10.000€.
It is important to note that when you withdraw an annuity from a capitalization portfolio, you are not "taking out the capital gain", as you might intuitively think. You sell part of your units, thereby recovering part of your capital AND the associated capital gains. In the example above, the 24.000€ annuity withdrawn actually consists of 22.800€ in capital and 1.200€ in capital gains.
As long as the share of capital gains realized within the framework of the annuity remains below 10.000€, the annuity will not be affected by capital gains tax. For an annuity portfolio worth 24.000€ per year, this threshold is reached once the capital gain exceeds 41,16% of the total value of the portfolio, i.e. after around ten years of annuity payments. And even beyond this investment horizon, the impact of the tax will ultimately remain very limited.
In other words, for an investor with a balanced risk profile and a reasonable income relative to their assets, the new tax does not jeopardize the sustainability of their income over a long period.
Scenario 2: more dynamic profile, 8% growth
In the second scenario, the investor still has 1.000.000€ in capital, invested in a diversified portfolio, but this time with a risk rating of 8 at Easyvest, i.e. a dynamic portfolio composed of 80% equities and 20% bonds, with an expected annualized return of 8%. Here, the investor wishes to draw a higher annual income than in the first scenario, namely 36.000€ per year, or 3.000€ per month.
The 10.000€ exemption threshold is reached here after five years, twice as quickly as in scenario 1. This is due to a higher growth rate, which increases the proportion of capital gains in the investment portfolio more rapidly, but also to a higher amount being levied, which automatically increases the capital gains realized.
Despite taxation starting sooner, the level of taxation remains reasonable. Even after twenty years of investment and a significant capital gain, the annual tax liability associated with the annuity will be limited to approximately 2.000€. To generate an annuity of 36.000€, it will therefore be necessary to sell 38.000€ worth of assets.
The capital gains tax will therefore impose a higher annual levy but should not derail the long-term annuity plan. It is therefore not likely to call into question the validity of the annuity plan based on a capitalization portfolio in this case.
Scenario 3: high pension of 60.000€ per year
In a third scenario, the investor still has 1.000.000€ in capital, still invested in a diversified risk 8 portfolio with Easyvest, i.e. a dynamic portfolio composed of 80% equities and 20% bonds for an expected annualized return of 8%. This time, the investor wishes to take full advantage of their pension and withdraws an annual income of 60.000€ per year, or 5.000€ per month.
The 10.000€ exemption threshold is reached here after only three years, which is three times faster than in scenario 1. This is solely due to the higher amount levied, which automatically increases the capital gain realized.
Despite taxation beginning almost immediately, the level of taxation remains reasonable. Even after twenty years of investment and a significant capital gain, the annual tax on the annuity will be limited to around 4.000€. To generate an annuity of 60.000€, assets worth 64.000€ will therefore need to be sold. The amount of tax is certainly significant, but it remains limited in relation to the total amount of the annuity.
The conclusion remains the same as for scenario 2. Even with high portfolio growth and a substantial income stream, the introduction of capital gains tax does not call into question the merits of an income portfolio based on capitalization ETFs, it simply reduces its effectiveness at the margin.
Advantages and limitations of annuities via capitalization ETFs
The advantages and disadvantages of annuities financed by successive sales within capitalization ETFs in the context of the new capital gains tax can be summarized as follows:
Advantages
- Lower taxation: Compared to a portfolio consisting of distribution ETFs, the portion of capital gains realized when drawing the annuity is taxed at only 10%, compared to 30% for traditional dividends. Optimisation of exemption: a moderate annuity allows you to remain below the annual exemption threshold for a long time, particularly for balanced risk profiles.
- Flexibility: investors can adjust the amount of the annuity and the sales schedule to smooth out the realization of capital gains.
- Alignment with passive management: the tax only applies to realized capital gains, which encourages a long-term "buy and hold" investment strategy.
Limitations and risks
- Increased tax complexity: it becomes necessary to accurately track the purchase and sale prices of ETFs to determine the taxable capital gain, often according to "first in, first out" rules.
- Risk of rule changes: legislation is not yet stable and could change, either upwards or downwards, in the coming years.
- Traditional financial risk: as always on the stock market, returns are not guaranteed, and an income portfolio remains exposed to market volatility.
The Easyvest approach to annuity portfolios
At Easyvest, annuity portfolios are constructed from globally diversified capitalization index ETFs and calibrated according to a risk profile ranging from 0 to 10. The annuity is paid out via automated, regular sales, which allows the proportion of capital gains realized each year to be controlled.
In the context of the new capital gains tax, this approach offers several advantages:
- management by risk profile, from the most defensive to the most dynamic, allowing you to adjust the balance between return, volatility and taxation;
- the possibility of adjusting your pension to remain within the annual exemption zone where appropriate;
- support from wealth managers trained in the new tax rules, complementing the work of your tax adviser.
To consider the level of income that is appropriate for your situation, you can also consult the Easyvest article "How much do you need to live comfortably in retirement?", which explains how to translate a retirement budget into an income portfolio invested in ETFs.
Conclusion
For a Belgian investor who lives off a portfolio of capitalization ETFs, the new capital gains tax represents a significant change in the tax landscape, but not a fundamental challenge to the strategy. In the realistic scenarios we have examined, the tax impact remains limited for many years for a median profile and remains manageable even for more dynamic profiles or higher pensions.
The key is to correctly size the annuity in relation to capital and accepted risk, maintain a long-term index-based approach, and take advantage of the annual capital gains exemption. Rigorous planning and professional guidance make it possible to continue using the stock market as a source of supplementary income, while incorporating new tax constraints.
FAQ on capital gains tax in Belgium
How are capital gains taxed in Belgium?
Since 1st of January 2026, capital gains realized by individuals on financial assets in the normal course of managing their private assets are subject to a new 10% capital gains tax. It applies to most financial assets, listed and unlisted shares, bonds, funds and ETFs, branch 21 and 23 insurance products, derivatives, cryptoassets, etc., with the notable exception of the main 2nd and 3rd pillar pension products.
The tax only applies to gains realized from 1 January 2026 onwards. Capital gains accumulated before 31 December 2025 remain exempt, either via a "snapshot" of the value of the securities on 31 December 2025, or via transition rules specified by law.
How can you avoid capital gains tax?
It is not possible to completely avoid capital gains tax in Belgium when you
- make the most of the basic annual capital gains exemption, for example by spreading sales over time rather than realizing a very large capital gain in a single year,
- adjust the amount of the annuity or withdrawal so that the realized capital gain remains close to the exemption threshold,
- favour products that are not subject to tax, such as certain second and third pillar pension products, and
- avoid unnecessary portfolio turnover by maintaining a long-term approach.
These guidelines are general in nature and are not a substitute for personalized tax advice. The aim is not to circumvent the law, but to organise your assets efficiently in accordance with the rules in force.
What is the Reynders capital gains tax?
The Reynders tax is a 30% tax that applies to part of the capital gains realized on certain funds and ETFs with a bond component. In practical terms, when a fund or ETF invests at least a certain proportion in bonds or fixed-income products, the capital gain linked to this bond component is subject to a 30% withholding tax at the time of sale or redemption of the units. This tax is separate from the new 10% capital gains tax and can therefore be combined with it. Its main purpose is to align the taxation of these products with that of interest income.