In Belgium

Belgium is relatively favourable when it comes to property capital gains compared to neighbouring countries. For private management of property, capital gains are generally tax-exempt — provided certain holding periods are respected.

The tax treatment depends on the holding period and the nature of the transaction:

  • Sale after 5 years (built property) or 8 years (unbuilt land): the capital gain is tax-exempt if the property was managed within “normal management of private assets”
  • Sale within 5 years (built) or 8 years (unbuilt): the gain is taxable at 16.5% (+ municipal surcharge)
  • Speculative transaction: if the sale is deemed speculative (e.g. serial flipping), the gain can be taxed at 33% as miscellaneous income

How it works

Calculation. The taxable capital gain is the difference between:

  • The net sale price (sale price minus sale costs)
  • The acquisition price indexed for inflation + acquisition costs (notary fees, registration duties) + documented improvement works

Indexation. The acquisition price is indexed using coefficients published by the FPS Finance, which partially offsets the effect of inflation.

Deductible costs. Notary fees, registration duties, documented renovation works (invoices required) and estate agent fees can be deducted from the gain.

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Good to know
The 5-year period for built property runs from the date of the notarial deed of acquisition to the date of the notarial deed of sale. If you bought on 15 March 2021, you must sell after 15 March 2026 to benefit from the exemption.

Practical example

Thomas bought an apartment in Brussels in 2019 for 250,000 EUR (+ 30,000 EUR in notary fees and duties). He sells it in 2026 for 320,000 EUR. The holding period exceeds 5 years: the capital gain of approximately 40,000 EUR (after indexation and deductions) is tax-exempt.

If Thomas had sold the same apartment in 2023 (within 5 years), he would have owed 16.5% tax on the indexed gain.

Key considerations

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Warning
The tax authorities assess whether a transaction falls within “normal management of private assets” on a case-by-case basis. Frequent purchases and resales, even after 5 years, can be reclassified as professional income taxed at progressive rates up to 50%.