Real estate capital gains

A capital gain on property is the profit made when reselling it. For an individual managing their private assets normally, it is only taxed on a quick resale. For a building, it is taxed at 16.5% if sold within 5 years of purchase, unless it was one's own home, lived in for at least 12 months before the sale. For land, it is taxed at 33% if sold within 5 years and at 16.5% between 5 and 8 years. The municipal surcharge comes on top. After these periods, the gain is not taxed. If the tax authority considers the deals speculative or professional, the gain can be taxed differently, as miscellaneous or professional income. In the calculation, purchase costs (a flat minimum of 25% of the price) and 5% per full year of ownership are added to the purchase price.