How are cryptos regulated in Belgium?

Estimated reading: 3 minutes 424 views

In Belgium, individuals considered to be prudent investors (“Bon père de famille”) (whether people investing little or those making a limited number of transactions) will benefit from a tax exemption on capital gains linked to cryptocurrencies.

In other words, if you made a profit during the year, you won’t be subject to tax, and you won’t have to declare your transactions.

Here are a few more key points:

Capital gains tax

Capital gains from the sale of cryptocurrencies in Belgium are generally not taxable in the same way as stock market shares. The length of time cryptocurrencies are held affects the tax rate. Short-term capital gains are more likely to be taxed at a higher rate than long-term gains.

Example: You bought a bitcoin in 2013, held it until 2024 and then sold it at that time. You won’t have to pay taxes on it! Be sure to keep track of your purchases and sales from your cryptocurrency exchange platforms. This can be used as evidence in the event of a tax audit. The same goes for your shares on the stock market. It’s all about your inflows and outflows. In Belgium, the bon père de famille (the stock trader or the person who doesn’t do much trading) will be exempt from cryptocurrency tax! Well, only on capital gains. In concrete terms, if you’ve made capital gains during the year, you won’t have to pay any tax, but what’s more, you don’t have to declare your transactions. That’s why other countries consider Belgium to be a tax haven!

Income tax

If cryptocurrencies are used for professional or commercial purposes, the gains may be considered taxable income.

Cryptocurrency mining

Income from cryptocurrency mining may be taxable as professional income, depending on the nature and scale of the mining activity.

It is better to go and see a specialized tax specialist, please consult :

avroy.tech (all about taxes)
tuerlinckx.eu (all about taxes)
crypto-compliance.eu (repatriation of money to traditional banks)

Staking cryptocurrencies

Income from staking is treated more or less like dividends, and is therefore taxable.

Cryptocurrency Airdrop

Airdrops are taxable if there is any consideration from the beneficiary. In this case, a series of prior actions or steps taken by the beneficiary are obviously taxable, but if not, the beneficiary is not taxable. A grey area

Buying products with cryptos

In Belgium, cryptocurrency-related transactions, such as purchases of goods or services using cryptocurrencies, may be subject to VAT. However, there are specific rules, and VAT does not necessarily apply to all transactions.

It’s important to note that the Belgian tax authorities have published specific guidelines on cryptocurrency taxation to provide guidance to taxpayers. As tax laws can be subject to change, here are the sources:

SOS

FAQ - Doc - Forum