Guide to calculating property gains in Luxembourg

The calculations used to determine capital gains on real estate in Luxembourg vary according to the length of time the property has been held and the type of gain (speculative or capital gain). Here is a summary of the calculations for each situation:

1. Property sold less than 2 years after purchase (speculative gain):

Profit = sale price - (purchase price + purchase costs)

Acquisition costs generally include estate agent's commission and the cost of obtaining an energy certificate.

2. Properties sold more than 2 years after purchase (transfer profit):

a) For a purchase against payment:

Income = sale price - (revalued purchase price + acquisition costs)

The purchase price is revalued by applying a coefficient corresponding to the year in which the expenditure was incurred. Capital expenditure includes major expenditure that has increased the value of the property or changed its nature.

b) In the case of acquisition free of charge (inheritance):

Income = transfer price - (revalued acquisition price + acquisition costs)

The purchase price is that paid by the previous owner, revalued in accordance with the conditions described above. Any inheritance tax paid is not taken into account when determining the purchase price.

Please note that these calculations are simplified and that it is always advisable to consult a professional for personalized advice on your tax situation.