On 23 November 2025, the Belgian government agreed its Budget for 2026. Two measures are particularly relevant for the commercialisation of life insurance contracts for Belgian resident policyholders:
- The confirmation of a new capital gains tax
- The increase in the Tax on Annual Securities Accounts (ATSA) rate from 0.15% to 0.30
Capital Gains Tax – What You Need to Know
The draft law introducing the new capital gains tax was submitted to the Belgian Parliament at the end of December. Although it still requires parliamentary debate and a formal vote, the law is expected to apply retroactively from 1 January 2026. Belgian residents should therefore assume the tax is already in effect, even though some details may change before final approval.
The main principles remain consistent with those outlined in our Summer 2025 Navigator article. The tax will apply at 10% on capital gains realised from 1 January 2026 on all financial products, including withdrawals or surrenders from life insurance contracts. An exit tax will also apply for two years after leaving Belgium.
Why Life Insurance Matters
Unit-linked life insurance contracts may become more attractive under this regime because they offer tax deferral benefits. Unlike other financial products, these contracts allow capital losses and gains on underlying assets to be offset without time limits. Switching investment funds within a Branch 23 policy will not trigger a taxable gain, and the policy structure simplifies administration compared to a directly held investment portfolio.
Points of Attention
- The draft law confirms taxation on all capital gains realised from 1 January 2026. Insurers will need to record the net asset value (NAV) of in-force contracts on 31 December 2025 to calculate future gains or losses.
- If a contract shows a loss between subscription and 31 December 2025, the policyholder may request calculation based on the original subscription value.
- Withdrawals will require proportional calculation of gains based on premiums paid and NAV at withdrawal.
- Currency conversions to euro will be necessary for contracts denominated in other currencies.
- Belgian financial institutions, including Utmost Belgian Branch, must act as paying agents and withhold the tax from 1 July 2026 unless the policyholder opts out.
- Insurers (including non-Belgian insurers) will need to provide annual attestations or information to help policyholders complete their tax declarations.
- The tax applies only during the policyholder’s lifetime, not on death settlements, creating estate planning opportunities.
Increase in ATSA Rate
The ATSA applies to securities accounts above €1,000,000 held by Belgian residents. The rate has doubled from 0.15% to 0.30%. However, ATSA does not apply to insurance contracts where the underlying securities account is held by a Luxembourg insurer (potentially also including its Belgian Branch, depending on the set-up of the branch) and the custodian bank is outside Belgium. In such cases, the Luxembourg insurer is the legal owner of the account, and the Belgium–Luxembourg tax treaty prevents Belgium from taxing these assets.
The Belgian Budget for 2026 introduces meaningful changes that will influence how advisers support clients with Belgian tax exposure. The new capital gains tax and the higher ATSA rate reinforce the value of life insurance-based wealth solutions, particularly where clients seek tax deferral, administrative simplicity and planning flexibility. As the legislative process progresses, advisers should continue to monitor developments and ensure policyholders receive timely guidance based on the final law.