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Brussels Local Reference INFOrmation

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Tax on Capital Gains on Real Estate in Belgium

Information on the taxes due in the event of a gain on the sale of a property in Belgium: the rates that will apply, as well as information on circumstance for reliefs or allowances. This information is relevant for Belgian residents and non-residents.

Disclaimer: Tax law is complex and every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of Belgian tax law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

When does Capital Gains Tax apply?

In simple terms, a capital gain on the sale of property is the difference between the original purchase price and the eventual sale price.

In general, individuals who sell real estate that has never been used as their primary dwelling are taxed on the capital gain if the sale occurs less than five years after acquisition. In this case the tax rate is 16.5%. Local tax is paid in addition to this, making the total approximately 18%.

In addition, individuals who do not carry on a real estate business but who actively buy and sell Belgian real estate can be taxed on the capital gains in the "miscellaneous income" category regardless of the holding period of the real estate. In this case, the tax rate is 33% (plus local tax).

Individuals who have amortised real estate (i.e. a property for which they are paying off a loan and interest) and which they use for business purposes are also taxed on the capital gain upon transfer of this real estate.

Belgian or foreign corporations who hold property in Belgium are always taxed on the capital gain upon the transfer of Belgian real estate.

Can the capital gain be tax-exempted?

Individuals may benefit from a tax exemption on the capital gain. This exemption applies to tax residents and non-residents of Belgium. Capital gains on the sale of a main home are, in general, exempt. Second homes or properties may be tax exempt if the sale occurs more than five years after acquisition. Special rules apply for capital gains on the sale of un-built land.

Further Information

The Federal Ministry of Finance
The Federal Ministry of the Economy, SMEs, Self-Employed and Energy – gives the tax rules
Land Registration and Estates Department (in Dutch & French)
AngloINFO INFOrmation page on Personal Income Tax in Belgium

Prepared by Fabrice Ketoff, SA Tax Consult NV
Avenue du Dirigeable-Luchtschiplaan 8, 1170 Watermael-Boitsfort, Brussels
Tel: 02 678 17 74, Fax: 02 675 38 88, www.taxconsult.be