Are you investing in bitcoin or other cryptocurrencies? Then you are considered an investor by the tax authorities. Just as with other investments, you do not owe tax on owning crypto coins. But possibly in terms of the added value you realize. The tax authorities distinguish between the following scenarios:
1. As a hobby
The capital gain is tax-free if the investment is part of the normal management of your private assets. You should therefore not include the amount in your tax return. That is the case if you take little risk and view your crypto investments as a hobby or a long-term investment.
“If you are not operating with borrowed money and are using a ‘buy and hold’ strategy, these are strong indications that you are acting with due diligence,” says business attorney Mark Delboo. “The size of your crypto portfolio also determines whether the investment fits in with the management of your private assets. However, that is not static. Some investors started with a modest investment of 10,000 euros and are now multi-millionaires.”
2. As a speculator
“If you work with borrowed money, make many transactions per day and respond to price fluctuations, the tax authorities consider you as a private trader or speculator,” says the business lawyer. Your capital gain is then taxable as ‘miscellaneous income’ at a rate of 33 percent. You only need to indicate the added value that you have actually achieved. You must enter that amount in box XV, code 1440/2440.
You may deduct realized capital losses for five years, provided that you had already declared them in previous years. You enter this under code 1202/2202. If you start with a negative value, consider whether it is worthwhile to indicate it.
3. As a trader
Anyone who trades crypto coins on a daily basis in a well-organized, frequent manner and with professional resources is considered a professional trader by the tax authorities. Bitcoin miners automatically fall into this category. You must declare professional profits as professional income in part 2 of the tax return and are taxed at the (progressive) personal tax rates. Capital losses can be deducted indefinitely. Professional traders must also join a social insurance fund as self-employed persons and pay social contributions.
4. Abroad
Just like foreign bank accounts, you must also declare foreign crypto accounts to the tax authorities. These are crypto accounts that you hold on a foreign platform, such as Coinbase. The reporting obligation is double. Firstly, you must report the foreign crypto account on your tax return in box XIII, section A. You must also report it to the Central Contact Point of the National Bank of Belgium (CAP).
“Investors who do not register their accounts will run into problems if they want to repatriate their cryptocurrency to their Belgian bank,” Delboo warns. “Banks are obliged to ask questions and are expected to refuse the transfer if the origin of the money is not clear. From 2026, the tax authorities will look at this with even more interest. The European directive on the exchange of financial data between member states will then also apply to crypto platforms.”
