Belgium's nonprofit sector generated 2.7 billion euros ($2.9 billion) in profit last year while paying only 80 million euros ($87 million) in taxes, according to an investigation published by HLN on September 22, 2026. The news outlet's research team examined the financial records of 17,000 nonprofit associations and foundations, uncovering billions in earnings that remain largely untouched by the tax authority. The findings come as Belgium's De Wever government prepares to impose taxes on nonprofit profits to close budget gaps, a move sparking alarm among charities and health organizations across the country.
The nonprofit sector's revenue reached nearly 55 billion euros in 2025, exceeding the construction industry's total turnover, the report found. Unlike regular corporations that must transfer a quarter of their profits to tax authorities, nonprofits can keep their entire earnings. About 90 percent of nonprofits would remain exempt under the government's proposed plan, which targets only organizations with revenue above 50,000 euros. Just 100 organizations accounted for more than half of all sector profits last year. Health insurance funds topped the list, booking 317 million euros in untaxed profits from hospitalization insurance products they've sold since the 1990s. One health fund alone made 121 million euros in profit.
The government specifically names hospitals as organizations that compete with private businesses, the investigation reports. When a private eye doctor's consultation generates profit, that income faces taxation, but when a hospital employs an eye doctor and earns profit from the same service, those earnings remain tax-free. The proposed change could cost some hospitals millions of euros. Care homes face similar uncertainty, with the sector split between genuine nonprofits and commercial operators using nonprofit structures to dodge taxes. The government is considering exempting income from donations, which would spare organizations like the King Baudouin Foundation, Red Cross, Doctors Without Borders, and the Cancer Foundation, all of which recorded substantial profits last year but derived them almost entirely from charitable gifts.
The tax proposal targets nonprofits operating commercial businesses in direct competition with taxed private companies. Tourist attractions like the Atomium, event venues like Brussels Expo, and concert halls such as Ancienne Belgique currently pay no profit tax. The Antwerp Zoo and Zoo Planckendael in Mechelen compete directly with Marc Coucke's Pairi Daiza theme park, yet Coucke pays tax on his park's profits while the zoos don't. Football club KRC Genk spent years fighting with tax authorities over its nonprofit status before paying 14 million euros in back taxes last year and switching to a taxable corporate structure. A tax rate of 20 to 25 percent on health insurance fund profits alone would deliver 64 to 80 million euros to government coffers, offering a significant revenue stream as Belgium confronts its budget deficit.