A bit more about the newly introduced capital gains tax in Belgium.

Some people are saying "it's only 10%", "there's a €10k per year exemption", and I agree that at first glance it seems to be okay, but there is so much more to this...

First of all, Belgium did not have capital gains tax on most assets since WW2. It was their main competitive advantage over neighboring countries. All of their neighbors have a form of capital gains tax. This was the sole reason wealthy individuals from France, Netherlands, Germany came to live and invest in Belgium. A part of them will leave and it will have an impact for sure.

Secondly, this tax is hitting the (upper) middle class, since it's 10% on realized profits, with a €10k exemption per person per year. A part of the very rich will either leave, or find a way around via financial constructions. It's the (upper) middle class that will feel this the most, and they are the backbone of Belgium's society. They are the ones running the SMEs, which is so crucial for the Belgian economy.

Also, it will scare away external (risk) capital, which was already hard to attract. Not all of it will stay away, but a part of it, and that is enough to have a huge impact. Not to mention it will scare entrepreneurs even more to try and get something done in a country with enormous amounts of taxes and a jungle of paperwork and regulations.

Lastly, I'm afraid that the exodus of capital, talent and entrepreneurship out of Belgium - that was already happening - will be accelerated.

Not sure which expensive studies the Belgian government based themselves on this time to come to this decision, but I don't need these studies to know that the impact will come from different directions. Add all of these factors together, and I can only come to the conclusion that it will be very painful for the future of my mother country.

The new tax should only collect €500 million per year by 2029. The impact however will not be worth this small amount.