Belgium’s political landscape has undergone a significant shift with the formation of a new federal government, led by Prime Minister Bart De Wever of the Flemish nationalist N-VA party. Sworn in on 3 February 2025, this government has introduced a new 10% capital gains tax, which has critical implications for small business owners looking to sell some or all of their business shares. 

What Does the New Tax Mean for Small Business Owners? 

The new capital gains tax applies to profits made from selling shares in businesses, including those owned by entrepreneurs and small business owners. While historically, capital gains on privately held businesses were often tax-exempt, this new policy introduces progressive taxation on gains above certain thresholds: 

• First €10,000 in gains – tax-free (for all investors) 

• For owners of at least 20% of a business: 

• First €1 million in capital gains – tax-free 

• €1 million to €2.5 million → 1.25% tax 

• €2.5 million to €5 million → 2.5% tax 

• €5 million to €10 million → 5% tax 

• Above €10 million → 10% tax 

For owners with less than a 20% stake, the full 10% tax applies beyond the €10,000 exemption. 

Additionally, capital losses can only be deducted within the same tax year, meaning they cannot be carried forward to offset future gains. 

Why Timing Matters: The Tax is Not Yet in Effect 

This new tax will only apply to capital gains accrued after its implementation date, which is expected to be in 2026. This means small business owners who sell their shares before then can avoid the tax entirely. For those considering a sale, this creates a critical window of opportunity to maximize financial returns before taxation takes effect. 

For small business owners who are considering selling some or all of their business, this tax introduces an important financial consideration – timing.  

How Upliift’s Investment Model Can Help You Prepare for the Future 

At Upliift, we believe in long-term partnerships rather than quick exits. By investing in permanent equity, we provide patient capital that allows business owners to grow at their own pace—without the pressure of an immediate sale. This is especially valuable in a changing tax environment, where taking investment instead of selling outright could result in significantly better financial outcomes for founders. 

With the Belgian tax changes on the horizon, now is the perfect time to explore equity investment options that align with your business goals. Whether you’re looking for expansion capital, financial stability, or a strategic growth partner, Upliift is here to help you navigate the changing landscape. 

Want to Learn More? 

If you’re a small business owner in Belgium thinking about some of your shares in the business or exiting altogether, let’s talk. Reach out to Upliift today to discuss how permanent equity can help you achieve your business goals while optimizing your financial future.