You've got some Bitcoin or Ethereum sitting in your Coinbase account. Now you're wondering if you need to declare it to the Belgian authorities.
The internet is full of conflicting advice. Some say you must declare every crypto account immediately. Others claim crypto platforms are completely exempt from reporting rules.
The truth is more nuanced. Whether you need to declare your Coinbase account depends on how Belgian law classifies the platform. Let's clear up the confusion once and for all.
Do you need to declare your Coinbase account?
You don't need to report your Coinbase account to the Central Point of Contact (CPC) of the National Bank of Belgium.
Here's why. Belgian law requires you to declare foreign accounts held with banking, exchange, credit or savings institutions abroad. Coinbase is registered in Ireland, but it's a digital asset service provider, not a regulated bank or financial institution. This means you're exempt from declaring your Coinbase account.
The Belgian Minister of Finance confirmed this in 2022. Crypto platforms that aren't considered banks don't fall under this reporting obligation.
Other crypto platforms in the same situation include Bitvavo and Binance.
Which crypto accounts do need to be declared?
Other crypto platforms or types of accounts may require declaration. Take Revolut as an example. It holds a European banking licence in Lithuania and considers its crypto accounts to be foreign bank accounts. This means you must declare them, even if you only use the crypto features.
However, if you hold a crypto wallet with a Belgian platform, you don't need to declare it. It's not considered a foreign account.
In practice, you need to assess each platform individually. Here's how to think about it:
- Declare if the platform offers banking services. This includes things like fiat currency accounts or debit cards. When in doubt, it's safer to declare.
- Don't declare simple crypto exchanges. If the platform only lets you buy and sell crypto without a banking licence, you typically don't need to declare it.
The key is understanding what services your platform offers. If it acts like a bank, treat it like one for declaration purposes.
How does it look for the future?
The rules are changing quickly. The Belgian federal government has announced a new 10% tax on capital gains, along with tighter controls.
Reporting crypto accounts could soon become mandatory too. The government plans to require crypto platform accounts to be reported to the CPC. This would give tax authorities better visibility over these assets and help combat fraud. This measure isn't in force yet, but it shows a clear trend towards greater transparency.
Until these new rules come into effect, nothing changes for you. The current situation remains the same.
Why still declare your Coinbase account?
Even if you are not legally required to do so, you may wish to declare your Coinbase account voluntarily for the sake of transparency and peace of mind. Some Belgian investors prefer to err on the side of caution, especially given the legal uncertainty that still surrounds crypto accounts. Declaring your account now will prevent any problems if the law suddenly changes.
However, keep in mind that declaring a crypto account is not intuitive. As there is no traditional account number, and sometimes no obvious physical address, it requires you to be creative in filling out the form. In other words, the procedure for declaring a Coinbase account will be non-standard, unlike a traditional bank account. Let's get into how to declare it.
How to declare your Coinbase account to National Bank of Belgium
The procedure is the same as for reporting any foreign account online, with a few minor differences for cryptocurrency accounts:
Step 1: head to the NBB website
Head to the NBB website on https://cappcc.nbb.be/my.policy and continue with the login.
Step 2: log in
Log in with your itsme account or eID card reader. The NBB uses CSAM, which is the main gateway to the services of the government. So you may recognise the interface from when you're declaring your yearly taxes.
Step 3: choose your preferred language
We will choose Dutch for the rest of the steps.
Step 4: go to the declaration of foreign accounts
Go to "Uw buitenlandse bankrekeningen aangeven":
Step 5: add a new account
Step 6: add the Coinbase account
- Rekeningnummer (nr.3,a): Enter a reference identifying your Coinbase account. Obviously, Coinbase does not provide an IBAN or traditional account number. Best to put in your email address that you use to log in with Coinbase.
- Benaming van de instelling (nr.3,b): Enter ‘Coinbase’ as the name of the institution. You can specify ‘Coinbase (cryptocurrency platform)’ if you wish, but this is not mandatory. The important thing is that the NBB understands that it is the Coinbase platform.
- Land waar de rekening is geopend (nr.3,d): Select the country associated with the Coinbase platform. Coinbase is headquartered in the United States and operates through several entities around the world, but since Coinbase has a registered entity in Ireland for the EU, you can indicate ‘Ireland’ as the country.
- Het oudste belastbaar tijdperk gedurende hetwelk de rekening bestond (nr.3,e): Year when you opened your Coinbase account
- Eventuele datum van sluiting van de rekening (nr.3,f): Add the year you closed your account, in case you closed your Coinbase account (this is optional)
- Laatste belastbaar tijdperk waarin de inkomsten van het kind gevoegd werden bij die van de ouders (nr.3,g): Last taxable period in which the child's income was added to that of the parents. This is only relevant if the account is held in your child's name.
- BIC-code (nr.3,c): As Coinbase is not a bank, there is no BIC code (bank identifier) to provide. Leave this field blank or enter ‘N/A’ if not required.
Instead, you will be asked to provide the address of the institution's headquarters
- Adres van de maatschappelijke zetel (nr.3,c): provide the headquarters address for Coinbase. This is "Mespil Road 45, Dublin D04 W2F1, Ireland" (this is Coinbase Ireland’s registered office). The key is to give an official Coinbase address. If you are unsure, use the address from Coinbase’s legal documentation or company register (the above Dublin address).
Step 7: confirm
Confirm, and you're all set! You can even download the PDF for your archives to keep a copy at hand.
Declare your Coinbase account in your annual tax return
If you declared it to the NBB, you should also mention your Coinbase account in your annual tax return.
The instructions are:
- Check the box 1075
- Add an entry for your Coinbase account: [your name] + IRELAND + check the box
- Check the box "Zijn de wettelijk bepaalde gegevens over de rekening bij het Centraal Aanspreekpunt bij de Nationale Bank van België gemeld?" or "Les données relatives au compte, qui sont prévues par la loi, ont-elles été communiquées au Point de Contact Central de la Banque nationale de Belgique ?"
That's it, you're all done!
ETF investing: a more sensible alternative to crypto
Cryptocurrencies like those available on Coinbase can be exciting, but they also come with significant risks: extreme volatility, unclear regulation, and a high chance of loss. For many Belgians looking to grow their savings over time, ETF investing offers a safer, more reliable path.
What are ETFs?
ETFs (exchange-traded funds) let you invest in a large number of companies all at once. Instead of trying to pick individual winners like Amazon or Tesla, or hoping your favourite crypto coin goes up, you invest in the entire market through a single, diversified fund. For example, an S&P 500 ETF lets you invest in the 500 largest companies in the US, while a MSCI World ETF gives you exposure to over 1,500 companies across developed markets worldwide.
By spreading your investments across thousands of companies, you reduce your risk. You’re not gambling on one meme coin or one tech company, you’re investing in the global economy. History shows that it pays off too:
ETFs are tax efficient
You have to pay the Belgian transaction tax, which is known as the TOB. This tax is between 0.12% and 1.32% depending on the ETF. And the 30% dividend tax can be avoided by investing in accumulating ETFs rather than distributing ETFs. Accumulating funds reinvest the dividends rather than paying them out to you.
Curvo: the easiest way to invest in ETFs
Choosing the right ETFs to invest in can be a challenge. But that's not all. You have to understand the intricacies of investing, comprehend the impact of taxes on your portfolio, learning how to use your broker, and know when to rebalance your portfolio. That's why we built Curvo. To make things easy so you can spend your free time on the things that matter most to you.
Get the best portfolio tailored to you and your goals
Invest in one of five portfolios, each optimised for a particular financial goal and appetite for risk. When you sign up, you're asked a series of questions to get to know you and learn what type of investor you are. Based on your answers, you are matched with the best portfolio. Your financial situation and goals (and even your attitude to risk) may change over time. That's why this process is repeated regularly to make sure that your investment strategy always remains aligned to you and your needs.
Diversification at its core
Each portfolio is globally diversified and invests in over 7,500 companies. That's a lot more than investing all your savings in a crypto coin.
All your money is invested
Your investments work with fractional shares. This means that all your money is put to work. There will never be cash sitting on your account doing nothing.
No transaction tax
There is a way to passively invest in ETFs while not having to worry about the transaction tax. At Curvo, all taxes are taken care of.
Invest sustainably
Sustainable investing is challenging because everyone has different beliefs and values. That's why your investments focus on one guiding principle: none of the portfolios invest in companies that are considered destructive to the planet.
Built for monthly investing
You can set up a monthly savings plan where your selected amount is automatically debited from your bank account and invested in your portfolio at the start of each month. This way, it's easy to adopt the best saving habits. Also, Curvo does not charge any transaction fees. And your investments support fractional shares meaning all your money is invested. So Curvo is ideal for monthly investing.
Discover how Curvo's app works.
Summary
Understanding your obligations regarding crypto accounts in Belgium can feel confusing, but now you have clarity on Coinbase. While currently not mandatory to declare, the regulatory landscape is shifting quickly. Being proactive about declaring your Coinbase account provides peace of mind as tax authorities increase their focus on crypto assets.
Remember the key takeaways: Coinbase accounts don't legally require declaration yet, but the upcoming 10% capital gains tax will change how crypto profits are treated. If you're looking for a more straightforward investment approach with clearer tax implications, globally diversified ETFs might be worth considering. Platforms like Curvo make this process simple by handling tax complexities and offering diversified portfolios aligned with your goals. Whatever investment path you choose, staying informed and transparent with tax authorities is your best strategy for long-term financial success.