Many entrepreneurs and business owners hold substantial cash reserves within their companies. With traditional savings and term deposit accounts offering relatively low returns, the question often arises whether these funds could be put to better use by investing in cryptocurrencies, for example. But is investing in crypto through a company a good idea? And how does it differ from investing privately?
Below, we outline the opportunities and potential pitfalls of investing in crypto through a company.
Investing through a company is perfectly possible
From a legal perspective, there is no general prohibition preventing a Belgian company from investing in crypto-assets.
Realised capital gains form part of the company's taxable profits. Realised capital losses may, in principle, be tax-deductible, provided the general conditions for deductibility are met.
However, a distinction must be made between realised losses and impairment losses on cryptocurrencies that the company still holds. A decline in value recognised in the accounts is not automatically tax-deductible. The tax treatment depends, among other things, on the nature and accounting classification of the crypto-assets and the applicable tax conditions. A properly substantiated valuation, accurate accounting entries and supporting documentation of the acquisition cost and exchange rates used are therefore essential.
This is a fundamental difference compared with private investors, whose tax treatment depends on whether their activities qualify as normal management of private assets (prudent management), speculation or professional activity.
Key differences from private investments
Many investors assume that investing through a company is automatically more tax-efficient than investing privately. However, this is certainly not always the case.
When you invest as an individual, you are subject to personal income tax at a rate of 10%, 33% or progressive rates of up to 50%, depending on your circumstances.
For a company subject to corporate income tax, different rules apply. Every realised capital gain forms part of the taxable result. The standard corporate income tax rate is 25%. However, small companies may, under certain conditions, benefit from a reduced rate of 20% on the first €100,000 of taxable profits.
When profits are subsequently distributed to a private shareholder, an additional tax charge generally applies. Ordinary dividends are, in principle, subject to 30% withholding tax. Under the conditions of the VVPRbis regime, a reduced rate of 18% may apply after the relevant waiting period.
For small companies, the liquidation reserve may also be an option. A separate 10% tax is payable when the reserve is established. For reserves established from 31 December 2025 onwards, an additional 9.8% withholding tax applies when the reserve is distributed after a three-year waiting period. Together, these taxes result in an effective tax burden of 18% on the profits available after ordinary corporate income tax.
Transitional rules with lower rates apply to older liquidation reserves. In the event of a distribution upon liquidation, no additional withholding tax is generally due, subject to the anti-abuse rules.
Investing through a company is therefore not automatically more tax-efficient than investing privately. The outcome depends on the amount of capital involved, the investment horizon, planned distributions and the shareholder's personal tax situation.
Accounting and practical considerations
In addition to the tax implications, there are also important accounting considerations.
Cryptocurrencies must be correctly recorded in the company's annual accounts and tax returns. Price fluctuations, realised capital gains and any impairment losses may affect the results for an entire financial year.
Banks are also increasingly requesting comprehensive documentation on the origin of funds and the history of cryptocurrency transactions.
Greater transparency for corporate crypto investments
Under DAC8, reporting crypto-asset service providers must collect information about their users and crypto transactions. These rules also apply to companies and may, depending on their classification, require information about their ultimate beneficial owners to be reported. The first reporting will cover data for 2026 and will take place in 2027.
In addition, from 1 December 2026, the scope of the Central Point of Contact for accounts and financial contracts will be extended to crypto-asset accounts held with the relevant Belgian providers and Belgian branches of foreign providers. These providers will be required to report account information and periodic balances, among other details.
These reporting obligations for service providers highlight the importance of maintaining a complete transaction history and ensuring that it is accurately reflected in the company's accounting records and tax returns.
When is investing in crypto through a company worthwhile?
Investing through a company may be tax-efficient in certain circumstances, particularly when:
- the company holds substantial surplus cash reserves;
- you do not need the funds for private purposes in the short term;
- you wish to structure your assets.
However, each situation requires an individual assessment of the tax, corporate law and accounting implications.
Seeking advice in advance can prevent costly surprises
Cryptocurrency investments are coming under increasing scrutiny from the tax authorities.
What may seem like an attractive opportunity today could lead to tax disputes, difficulties during bank compliance checks or unexpected tax liabilities tomorrow.
An assessment of your situation in advance can help identify the most appropriate investment structure and avoid unpleasant surprises.
Are you considering holding crypto-assets through your company? Moore Law assists entrepreneurs, business owners and investors with the tax and legal structuring of crypto investments and assesses whether investing through a company is genuinely the most suitable solution for your specific circumstances.
