Guide to Calculating Real Estate Capital Gains in Luxembourg

The calculations to determine real estate capital gains in Luxembourg vary depending on the holding period of the property and the type of profit (speculative or disposal). Here is a summary of the calculations for each situation:

1. Properties sold less than 2 years after their acquisition (speculative profit)

Profit = Sale price - (Acquisition price + Incidental expenses)

Incidental expenses generally include real estate agent commissions and costs related to issuing the energy certificate.

2. Properties sold more than 2 years after their acquisition (disposal profit)

a) For an acquisition for valuable consideration

Income = Sale price - (Revalued acquisition price + Incidental expenses)

The revaluation of the acquisition price is carried out by applying a coefficient corresponding to the year in which the expense was incurred. Capital expenditures include significant expenses that have increased the value of the property or changed its nature.

b) For an acquisition free of charge (inheritance)

Income = Sale price - (Revalued acquisition price + Incidental expenses)

The acquisition price used is the one paid by the previous owner, revalued according to the conditions described above. Any inheritance taxes paid are not taken into account when determining the acquisition price.

Please note that these calculations are simplified and that it is always recommended to consult a professional to obtain personalized advice regarding your tax situation.