Posted on 31 July 2023
How to declare the sale of your second home or rental property?
π π° Sale of a second home or rental: How to declare the capital gain? Speculative gain or disposal? We'll guide you! πΌπ‘
Speculation profit ππ²
If sale < 2 years after purchase, it's speculation. Calculation: sale price - purchase price = profit. Taxation at the "normal" rate.
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Profit on sale πΌπ
If sale > 2 years after purchase, capital gain. Calculation: sale price - revalued purchase price = profit. Taxation at half the overall rate, max 21%.
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Advantageous tax relief π°ππ
Take advantage of tax allowances of up to β¬100,000 for spouses/partners and β¬75,000 in the event of inheritance.
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Example: Yannick sells his second home. Purchased in 2016 at β¬500,000, sold in 2021 at β¬800,000 (revalued at β¬600,000).
Holding period: 5 years (<2 years). Capital gain: β¬200,000. Allowance: β¬100,000. Tax: β¬15,000.
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Declare your capital gains easily with taxx.lu! π₯οΈπΌ
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