Real estate capital gains

Real estate capital gains is the profit realized when reselling a property. In Belgium, taxation depends on the holding period: if resale occurs within 5 years of purchase (buildings) or 8 years (undeveloped land), the capital gain is taxed at 16.5% (+ municipal surcharges). Beyond these periods, the gain is exempt under normal private wealth management. However, if the tax administration considers transactions speculative or professional, the gain may be taxed as professional income (marginal rate up to 50%). Acquisition costs and renovation works can be deducted to calculate the net gain.