Are crypto losses tax-deductible in Belgium? The rules for capital losses under the 2026 capital gains tax: offsetting within the same year, no carry-forward, and smart use through tax loss harvesting.
Are crypto losses tax-deductible in Belgium?
Yes - but only under specific conditions. Until the end of 2025, a simple rule applied to most crypto investors: anyone who managed their crypto as a "prudent investor" (normal management (private investor)) paid no tax on gains, but could also not deduct losses. No tax on gains automatically meant no deduction for losses.
That has fundamentally changed. From 1 January 2026, realised capital gains on crypto fall under the new capital gains tax of 10%. And where gains become taxable, losses also become relevant.
Below is a brief overview of the difference:
| Old regime (before 2026) | New regime (from 2026) | |
|---|---|---|
| Rate | 0% (normal management) or 33% (speculative management) | 10% on net capital gain |
| Losses deductible? | No (normal management) / Yes, within the same year (speculative management) | Yes, within the same taxable period |
| Loss carry-forward | No (normal management) / 5 years (miscellaneous income, 33%) | Not possible |
| Exemption | Full exemption under normal management | First €10.000 per year exempt |
Some sources still mention a 5-year carry-forward of losses - this applied under the old miscellaneous income regime (33%) and is no longer applicable under the new capital gains tax.
The rules for capital losses under the 2026 capital gains tax
The core principle is straightforward: capital losses are deductible, but exclusively from capital gains realised within the same taxable period (Art. 102, §5 WIB). The 10% tax is calculated on your net result - the balance of all your realised gains and losses over the full calendar year.
Interaction with the €10.000 exemption
Losses first reduce your taxable capital gain, and only then is the annual exemption of €10.000 applied. This can result in your net taxable result falling entirely below the exemption.
Example: In 2026 you realise €15.000 in crypto gains and €8.000 in crypto losses. Your net capital gain is €7.000. That falls entirely within the €10.000 exemption - you pay €0 in tax.
Cross-asset offsetting
The capital gains tax has a broad scope and covers not only crypto, but also shares, bonds, ETFs, funds, and other financial assets. Losses on crypto can in principle be offset against gains on other financial assets within the same year - and vice versa.
Note: the approved law stipulates that offsetting takes place within the same category (category C - shares, bonds, funds, crypto, foreign currencies). Consult a tax adviser if in doubt.
Step-up basis: losses on pre-2026 positions
Crypto you already held on 31 December 2025 receives a new valuation based on the market value on that date (the so-called "snapshot moment"). Only the change in value after 1 January 2026 is taxable or deductible.
Was your original purchase price higher than the market value on 31 December 2025 (a latent loss)? Then you may use the higher purchase price as your basis - but you must be able to prove this (Art. 102, §4 WIB).
Proof of losses
Capital losses must be proven "by all means of common law." In practice, this means:
- Statements from exchanges and wallets
- Exports from a crypto tax calculator (such as Cryptotax)
- CSV files with transaction history
- Blockchain data via block explorers
Keep these documents carefully - FOD Financiën (the Belgian tax authority) may request them.
Costs are not deductible
Important detail: transaction costs (trading fees, gas fees, bridge fees) are not deductible when calculating your capital gain or capital loss. They are not included in the cost basis of your crypto.
Losses from previous years: no carry-forward possible
This is one of the most important limitations of the new law: losses cannot be carried forward to the next taxable period. There is no carry-forward.
In concrete terms, this means:
- If you realise a net loss of €20.000 in 2026, that loss is "lost" for tax purposes.
- If you make a profit of €20.000 in 2027, you pay 10% on the amount above the exemption - without offsetting against the 2026 loss.
This is a fundamental difference from the old regime for speculative/miscellaneous income (33%), under which losses could be carried forward for up to 5 years. Under the new 10% capital gains tax, that possibility no longer exists.
Exception - professional trading: Anyone classified as a professional trader falls under a different tax regime (progressive rates up to 50%). In that case, losses are treated as business losses and can be carried forward. However, this applies to a small minority of investors.
The consequence? The timing of your purchases and sales becomes crucial. If you know you have realised gains this year, it may be worthwhile to close losing positions within the same year.
Tax loss harvesting: making smart use of losses within the same year
Tax loss harvesting is a strategy where you deliberately sell loss-making positions to use the realised losses as compensation for gains - thereby reducing your taxable capital gain.
Because losses cannot be carried forward, it is all the more important to deploy them strategically within the same calendar year in which you realise gains.
How does it work in practice?
Suppose: you sold Solana in 2026 with a €5.000 gain. At the same time, you have an Ethereum position that is currently at a loss. By selling that ETH before 31 December, you realise the loss and can offset it against your Solana gain.
Note: FIFO determines which lot you sell
Belgium mandatorily applies the FIFO method (First-In, First-Out). This means that on any sale, your oldest lot is always sold first. This has direct consequences for tax loss harvesting:
Example:
- Lot 1: 1 ETH bought on 01/03/2025 for €3.000 (step-up to €2.500 on 31/12/2025)
- Lot 2: 1 ETH bought on 15/06/2026 for €1.500
- Current price: €2.000
If you sell 1 ETH, FIFO sells lot 1 first. You realise a loss of €500 (€2.000 - €2.500 step-up). Lot 2 - with a larger latent loss - remains open.
This makes it essential to know your FIFO queue before executing a tax loss harvesting strategy. Also read our article on common FIFO mistakes.
No wash sale rule in Belgium
Unlike the US, Belgium (for now) has no "wash sale" rule. This means you may sell a cryptocurrency to realise the loss and buy the same coin again shortly afterwards. The loss deduction remains valid.
Do bear in mind that the tax authority could in theory challenge abuse if transactions serve exclusively a tax purpose - although this is rarely the case in practice with crypto.
How Cryptotax calculates losses via FIFO
Cryptotax automatically applies the FIFO method across all your connected wallets and exchanges. This means you know exactly what your net result is - and whether tax loss harvesting makes sense.
Automatic FIFO across all platforms
Whether you use Kraken, Binance, Coinbase, or an on-chain wallet: Cryptotax combines all your transactions into a single FIFO queue per crypto asset. Every sale is linked to the oldest available lot.
Cross-chain lot continuity
Transfers between wallets, bridges to other networks (Base, Arbitrum), and wraps (ETH → WETH) are correctly recognised as continuity - not as sales. Your original cost basis and purchase date remain intact.
Net result per sale
For every taxable transaction, Cryptotax calculates the gain or loss based on the exact lot segments consumed via FIFO. Your export contains:
- Purchase price and date per lot
- Sale price and date
- Realised gain or loss per transaction
- Cumulative net result (YTD)
This is precisely the documentation you need to prove losses to the tax authority.
✅ Update: The capital gains tax act was approved on 3 April 2026 by the Chamber of Representatives. The rules in this article are based on the approved legal text. The act is still awaiting publication in the Belgian Official Gazette. This article is informational and does not constitute tax advice. Consult a tax adviser for your personal situation.
