Law verified as at 5 October 2026
The French law cited is the law in force at that date. It may change, in particular with the 2027 Finance Law. Belgian law is presented subject to confirmation by a local adviser, in particular as to the exact status of recent legislation.
Belgium is among the nearby destinations studied by French people who are considering leaving France. Two developments there call for particular attention in 2026: a new tax treaty, signed in 2021 but not yet in force, and the introduction of a tax on capital gains on financial assets that changes one of the country’s historical selling points.
The method for a departure is set out on our page on preparing to leave France.
When do you become tax resident in Belgium?
Two legal systems overlap. On the French side, tax domicile results from the criteria in Article 4 B of the French Tax Code (code général des impôts, CGI): home or principal place of stay, a professional activity that is not ancillary, centre of economic interests. A single criterion is enough to keep the link with France.
On the Belgian side, residence is assessed under Belgian domestic law, using a concept of domicile and a concept of seat of wealth, whose criteria and presumptions fall under local law and should be checked with an adviser on the ground.
Where both States claim residence, the treaty settles the matter following the logic of the OECD Model Tax Convention: permanent home, centre of vital interests, habitual abode, nationality.
Which France–Belgium tax treaty applies?
The treaty between France and Belgium of 10 March 1964, amended by several protocols and by the OECD Multilateral Convention, remains the applicable text. A new treaty was signed on 9 November 2021, intended to replace it.
Its entry into force requires the completion of the ratification procedures in both States. According to the official list published on impots.gouv.fr, it had not entered into force at the date of verification. The text applicable to a given transaction therefore depends on its date: you must check, on the day of the transaction, which of the two treaties is in effect. This is the first point to address in any France–Belgium file.
How are capital gains treated?
Belgium traditionally did not tax capital gains realised by an individual in the normal management of their private wealth. This argument long shaped plans to settle there.
A tax on capital gains realised on financial assets has been introduced. According to the SPF Finances (Belgian Federal Public Service Finance), it applies to sales made from 1 January 2026, at a rate of 10%, with an annual exemption of €10,000 per person for assessment year 2027. For assets acquired before 1 January 2026, the value on 31 December 2025 in principle serves as the acquisition value. The scope, exclusions and reporting arrangements fall under Belgian law and are to be confirmed with a local adviser before any decision.
The practical effect is clear: comparing France and Belgium on capital gains on securities is no longer a comparison between taxation and no taxation, but between two tax regimes.
What France continues to tax
- Income from property located in France, at the minimum rate of 20% and then 30% under Article 197 A of the CGI.
- The French real estate wealth tax (IFI) on French real estate only, above €1,300,000 of net taxable value on 1 January.
- French real estate capital gains, at the 19% rate under Article 244 bis A, plus social levies. As Belgium is a member of the European Union, no accredited tax representative is required.
- Gifts and inheritances falling within Article 750 ter of the CGI.
The exit tax under Article 167 bis may apply on departure, with automatic deferral, as Belgium is a member of the European Union.
A worked example
A couple moves to Brussels in 2026. They hold a securities portfolio of €2,400,000, including €900,000 of unrealised gain, and keep a flat in Lille, valued at €480,000 and let for €21,000 a year.
- Exit tax: as the overall value of the securities exceeds €800,000, Article 167 bis applies. The tax assessed on €900,000 of unrealised gain amounts to €115,200 at the 12.8% rate, excluding social levies. Deferral is automatic and the tax is discharged after two years if the securities are still held, as the overall value is below €2,570,000.
- French rental income: €21,000 taxable in France, at the 20% minimum rate, i.e. €4,200, excluding social levies and before deductible expenses.
- IFI: the French real estate assets, €480,000, remain below the €1,300,000 threshold. No IFI is due.
- Later sale of the securities: Belgian taxation of capital gains on financial assets must be taken into account, with the reference value on 31 December 2025 for securities acquired earlier, under arrangements to be confirmed locally.
Who this move suits, and who it does not
It may suit a person who genuinely moves their home to Belgium, whose activity is carried on there, and whose French real estate assets remain limited.
It is a poor fit for someone still counting on capital gains on securities being untaxed, and for someone whose family and activity remain in France.
Cross-border workers fall under a separate regime
One confusion comes up often. The cross-border workers regime, which for decades organised taxation in the State of residence of employees whose home was in the border zone of one State and whose job was in the border zone of the other, does not concern people who transfer their domicile to Belgium to live there. It targets a different situation: a home on one side of the border, a job on the other.
This regime has been gradually phased out, with transitional provisions. A person who settles in Belgium in 2026 does not come within it: their taxation follows the ordinary rules of the applicable treaty.
Points to address before departure
- Determine the applicable treaty on the day of each planned transaction, not on the day of the plan.
- Establish the reference value of financial assets at 31 December 2025 where the Belgian capital gains regime is likely to apply, which requires keeping documentation.
- Deal with exit tax, by identifying the value of the securities on the day of the transfer and the period before discharge, two or five years depending on the €2,570,000 threshold.
- Decide on French real estate, whose taxation does not change with the departure. The main residence exemption no longer applies after departure; only the exemption capped at €150,000 of net capital gain under 2° of II of Article 150 U of the CGI remains available, subject to conditions.
- Document the transfer of the home, the only element that withstands an audit several years later.
Key points
- The 1964 treaty remains applicable: the treaty signed on 9 November 2021 had not entered into force at the date of verification, a point to check on the day of each transaction.
- Belgium has introduced a tax on capital gains on financial assets applicable from 2026, whose scope should be confirmed with a local adviser.
- French real estate assets and income remain taxable in France, and exit tax benefits from automatic deferral.
FAQ
Which treaty applies between France and Belgium?
The treaty of 10 March 1964 remains applicable. A new treaty was signed on 9 November 2021 to replace it: according to impots.gouv.fr, it had not entered into force at the date of verification, a point to check on the day of the transaction.
Are capital gains taxed in Belgium?
A tax on capital gains on financial assets has been introduced. According to the SPF Finances, it applies to sales made from 1 January 2026, at a rate of 10%, with an annual exemption of €10,000 per person for assessment year 2027. The exact scope and arrangements fall under Belgian law and are to be confirmed with a local adviser.
Does my French flat remain taxable in France?
Yes, on its income, for IFI above €1,300,000 of French real estate assets, and on the capital gain if it is sold, at the 19% rate plus social levies.
Does exit tax apply on a move to Belgium?
It applies if the thresholds of Article 167 bis of the CGI are reached. As Belgium is a member of the European Union, the payment deferral applies automatically, without security or prior application.
Is a tax representative required to sell a property in France?
Not for a seller established in Belgium, a Member State of the European Union, as Article 244 bis A of the CGI waives this obligation in that case.
Assessing your move to Belgium
We determine the treaty applicable to your situation, the effect of the Belgian capital gains regime and the treatment of the assets kept in France. See our notes on tax in Dubai and on the Beckham Law in Spain, our article on property kept in France and the steps of a departure from France. Every situation is different and deserves a dedicated analysis.
Official sources
- Treaty between the French Republic and the Kingdom of Belgium signed on 9 November 2021, full text – impots.gouv.fr (in French)
- Official list of international tax treaties – impots.gouv.fr (in French)
- BOFiP, list of tax treaties concluded by France – bofip.impots.gouv.fr (in French)
- Article 4 B of the French Tax Code (code général des impôts), tax domicile – Légifrance (in French)
- Article 964 of the French Tax Code (code général des impôts), real estate wealth tax – Légifrance (in French)
- Article 244 bis A of the French Tax Code (code général des impôts), real estate capital gains of non-residents – Légifrance (in French)
- Article 197 A of the French Tax Code (code général des impôts), minimum rate applicable to non-residents – Légifrance (in French)
- Article 167 bis of the French Tax Code (code général des impôts), exit tax – Légifrance (in French)
This article sets out the law for general information purposes, as verified at the date of publication. Foreign law is presented subject to confirmation by a local adviser. It does not constitute legal advice. Every situation is different and deserves a dedicated analysis. Content compliant with the professional conduct rules of the legal profession.
