For anyone thinking of buying, selling or investing in property, capital gain is an important concept. Are you a seasoned investor ready to sell a building ? A private individual wishing to sell a house? BIV Immobilier, your estate agency in Liège, informs and supports you!
Property capital gains in brief
Put simply, it is the difference between the sale price of your property and the purchase price you paid when you acquired it, plus all the associated costs (notary’s fees, registration duties, renovation and maintenance costs...).
Property capital gain = sale price - (purchase price + purchase costs).
Of course, before making a capital gain, the first step is to set the sale price of your property, attract as many visitors as possible with your property listing and find at least one interested buyer. The agents at BIV Immobilier are here to help you!
How do you calculate a property capital gain?
- Determine the sale price, i.e. the amount for which you want to sell your property and for which the buyer is prepared to acquire it (purchase offer).
- Deduct the purchase price, including notary’s fees and registration duties.
- Include renovation costs if you have carried out work.
- Don’t forget to also deduct all the costs you incur in selling the property (agency commission, advertising costs...).
What tax applies to property capital gains in Belgium?
The taxation of property capital gains depends on how long you have held the property.
- A developed property (dwelling, commercial premises…)
If you sell your building or house within 5 years of acquiring it, the capital gain is taxed at 16.5%. After that period, there is no tax.
- A building plot
If you sell a plot of land within 8 years of acquiring it, the capital gain is taxed at 33%. After that, you are not taxed.
- Your main residence
Fully exempt, even if you sell your home within 5 years.
Would you like to sell a property in the province of Liège and make a good capital gain? Contact BIV Immobilier without delay!
Also read: How do I estimate the value of my property?
