Hello 👋

The taxation system for cryptos is not clearly defined in Belgium and is based on the system for shares and on the central notion of “normal portfolio management” (good family father).

There are 3 categories of investors, each with a specific taxation, so it's essential to determine your profile.

💡 Wondering what the different investor profiles are in Belgium and how to find your profile? Take our free automatic survey to determine your profile here (link to the survey)

Here is a presentation of each profile, the criteria for being associated with it and the associated taxation:

Profiles

“Good family father”

Speculator

Professional

Criteria

.Long term

.normal management

.Low risks

.Short terme

.High risks

.Main activity

.Professional tools

Tax system

.No declaration and no tax on capital gains

.Tax only on staking gains(30%)

.Tax on capital gains (33%)

.Tax on staking gains (30%)

Income tax (progressive)

1️⃣ The “good family father” profile

This profile is applicable to people with a vocation for wealth preservation with the goal of not losing money. It's therefore difficult – but not impossible – to be considered as a good father in the cryptocurrency business.

The criteria for determining this profile :

  • the long-term investment time horizon ;

  • a long holding period for cryptos ;

  • a low number of transactions ;

  • very low risk taking in general.

💡 The good father is not taxed on capital gains.

He will however be taxed on staking or farming gains.

2️⃣ The “speculator” profile

The term “speculator” refers to the person managing his assets “outside normal management”, in contrast to the “good family man”.

The criteria for determining this profile are :

  • the short-term investment horizon ;

  • a short holding period for cryptos ;

  • a high number of transactions ;

  • a significant capital risk.

💡 The speculator will be taxed at 33% on capital gains.

3️⃣ The “professional” profile

The profile refers to legal entities or a physical person whose main activity is trading in crypto-assets or mining.

The criteria for determining the profile are :

  • regularity and automatism in the operations ;

  • use of sophisticated processes,

  • tools or bots dedicated to performance ;

  • use of a bank loan to invest ;

  • mining activity.

💡 The professional will be taxed at the progressive income tax rate.

If you have any further questions, please feel free to contact us via the chat just at the bottom right of your screen! 💬

The Waltio team

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