Capital Gains Tax on Property

Capital gains tax on property in Belgium

Unlike many countries, Belgium generally does not tax capital gains on the primary residence. However, in certain cases, taxation applies.

When is capital gain taxed?

• Built properties: taxed at 16.5% (+ municipal surcharges) if resold within 5 years of acquisition
• Land: taxed at 33% if resold within 5 years, at 16.5% if resold between 5 and 8 years
• Speculative gains: if the tax authority considers the operation speculative, taxation at the marginal rate (up to 50%)

Exemptions

• Sole own dwelling: the sale of your primary residence is ALWAYS exempt, regardless of the holding period
• Sale after 5 years (built properties): no taxation
• Inheritance: capital gain between inheritance acquisition and resale is calculated on the value declared in the inheritance

Calculating capital gain

Taxable capital gain = Sale price - (Purchase price + acquisition costs + documented works + 5% flat rate per year of ownership)

The 5% annual flat rate significantly reduces the taxable base, making effective taxation often very low after 3-4 years.

Check our return calculation guide to integrate taxation into your projections.