Belgium’s New CGT and its Impact on Life Assurance Contracts

With reference to a recent article in De Tijd on January 16th 2026, the Flemish equivalent of the Financial Times, journalist and financial specialist Peter Van Maldegem points out that despite the introduction of the new capital gains tax (CGT) on investments in Belgium, the tax paradoxically enables life assurance contracts, used predominantly as long-term investment and savings tools, to emphasise their strengths more effectively with their Branch 23 investments.

Branch 23 policies incorporate investment funds linked to a life assurance contract. They allow investors to build diversified holdings of equity-bond-mixed funds, designate beneficiaries for estate planning, and maintain full access to their capital during life. But what should investors pay attention to under the new tax landscape?

In what follows, we pose several questions that investors should be asking, in order to understand the advantages of a Branch 23 construction.

Premium Tax vs. Ongoing Taxes

The tax treatment of Branch 23 life assurance contracts differs from that of traditional investment funds. A 2% premium tax applies to every premium you pay into such a fund. However, this exempts you from other tax obligations that apply to traditional funds in subsequent years. There is no stock exchange tax (TOB or Beurstaks), no withholding tax, and no 30% Reynders tax. In other words, the growth that happens inside a life assurance contract stays inside the life assurance contract.

QUESTION: When is it more advantageous to use a Branch 23 life assurance contract for an investment?

Trading Flexibility & Capital Gains Tax

Since the beginning of this year, Branch 23 funds are now also subject to capital gains tax at 10%. However, this CGT also offers relative advantages compared to other financial products that are subject to the tax.

QUESTION: Under what circumstances can the CGT be deferred or even mitigated in a Branch 23 life assurance contracts?

Treatment Upon Death

Holders of a Branch 23 life assurance policy can nominate a beneficiary.

QUESTION: Will my beneficiary have to pay to CGT on my investment growth when I die?

Impact of the Increased Securities Tax

Together with the introduction of the capital gains tax, there is also a doubling of the tax on securities accounts from 0.15% to 0.30%, which can have consequences for Branch 23 funds over a certain threshold.

QUESTION: How do I know if the security tax is applicable to my investment and is there a way to mitigate it?

Luxembourg’s “Safety Triangle” v. Belgian Protection Mechanisms

Both Belgian and Luxembourg Branch 23 life assurance policies are valid and compliant options for long-term wealth management and investment planning.

QUESTION: Under which circumstances am I better off favouring a Belgian or Luxembourg policy?

Estate Planning Benefits

One of the most important reasons for choosing a Branch 23 life assurance policy is the possibility of estate planning.

QUESTION: Can a Branch 23 life assurance policy help with mitigating inheritance taxes?

Investment Offering & Fund Range

In terms of their offering, insurers focus on a multi-manager platform, which means that they often collaborate with large international fund managers.

QUESTION: When using a Branch 23 life assurance policy, how many investment funds are typically available to me that I can use in my investment portfolio?

In conclusion

The questions that we have posed above are just some of the questions that our clients typically ask when enquiring about setting up a Branch 23 life assurance policy.

At Monnet Capital we can answer all these questions for you, guide you and help you understand the real benefits that Branch 23 funds can offer. Feel free to contact us to learn more about how to position your wealth management going forward.