The general rule on property capital gains
For private individuals, capital gains on a built property sold more than 5 years after purchase are tax-free. If sold within 5 years, the gain is taxed at 16.5% (+ municipal surcharge). For unbuilt land, the tax-free period is 8 years. Companies are always taxed on property capital gains at the corporate tax rate.
| Holding period | Built property | Unbuilt land |
|---|---|---|
| Less than 5 years | 16.5% | 33% |
| 5 to 8 years | Tax-free | 16.5% |
| More than 8 years | Tax-free | Tax-free |
Tax rates and calculation
Apartment purchased for EUR 250,000 (including notary fees and registration duties). Sold after 3 years for EUR 300,000. Selling costs: EUR 5,000.
| Item | Amount |
|---|---|
| Selling price | EUR 300,000 |
| Acquisition cost (indexed at 5%/year for 3 years) | EUR 289,406 |
| Selling costs | EUR 5,000 |
| Net capital gain | EUR 5,594 |
| Tax at 16.5% | EUR 923 |
| Municipal surcharge (7%) | EUR 65 |
| Total tax | EUR 988 |
The acquisition cost is indexed by 5% per year of ownership to account for inflation. Documented improvement works can also be added to the acquisition cost.
Exceptions and special cases
Speculative transactions: if the tax authorities consider the sale speculative or part of a professional activity, the gain may be taxed as miscellaneous income (33%) or professional income (up to 50%).
Inherited property: the holding period starts from the date the deceased acquired the property, not from the date of inheritance.
Expropriation: capital gains from compulsory purchase are generally tax-exempt, even within the 5-year period.
The classification as “normal management of private assets” vs “speculative activity” is assessed case-by-case by the tax authorities. Buying and selling multiple properties in a short time period may be requalified as professional activity.
Keep all invoices for renovation works and improvements. These documented expenses increase the acquisition cost and reduce the taxable capital gain.
Regional specifics
Brussels-Capital Region
Capital gains taxation is a federal matter and applies uniformly. Registration duties on the new purchase (12.5%) are a significant cost that should be factored into any short-term resale calculation.
Walloon Region
Same federal rules. Walloon registration duties (12.5%) apply. The reduced rate (3%) does not apply to resales.
Flemish Region
Same federal rules. Flemish registration duties (12%) are slightly lower. Flanders offers a portability mechanism for registration duties (meeneembaarheid) that can reduce costs on replacement purchases.
Articles 90, 10 and 101 CIR 92 (capital gains on real estate), Articles 14536-14538 CIR 92 (holding period rules) — Texts on Justel