Capital gaintool

About this model and its assumptions

This model has been reviewed on the 12th February 2024.

Taxable Capital Gain

Model

Calculating the Taxable Capital Gain requires to first determine if the capital gain is the result of a speculative gain or a long-term gain. In the case of a speculative gain (corresponding to a sale before 2 years following the acquisition, 5 years starting in 2025), only the Acquisition Costs and the Agency Fees can be deducted from the capital gain in order to calculate the Taxable Capital Gain. In the case of a long-term gain (corresponding to a sale after 2 years following the acquisition, 5 years starting in 2025), the Acquisition Costs, Agency Fees but also a Reevaluation of the Acquisition Price of the property are deducted from the capital gain in order to calculate the Taxable Capital Gain. The Acquisition Costs correspond to the costs related to the registering of the change of ownership (from the developer to you or from the previous owner to you, as the case may be) and are added to the Acquisition Price of the property to calculate the Reevaluation of the Acquisition Price of the property.

Assumptions

To calculate the Acquisition Costs, the registration fees and the notary fees are fixed by the state of Luxembourg and depend on the price of the property as well as the Type of Acquisition (existing or off plan). For the purpose of our calculator, we considered that the land value traditionally corresponds to 30% of the total price of a new property (off plan). We invite you to consult the Nexvia Tax smart card if you wish to have more information on the applicable rates concerning Registration Costs. Our calculator includes the other notary charges corresponding to the payable VAT on the notary fees as well as other expenditures and disbursements that the notary billed to act the transfer of ownership. These expenditures and disbursements that the notary billed can slightly vary according to the specific situation of your acquisition. Our estimate should however be very close to the actual price that you payed for the acquisition.

The Agency Fees correspond to the percentage you selected in the simulator. The deductible Agency Fee amount for the calculation of the Taxable Capital Gain (presented above) includes the applicable 17% VAT rate.

The Reevaluation of the Acquisition Price is determined on the basis of rates applied by the Luxembourg Tax Administration. The Reevaluation factors used by our calculator are extracted from the latest forms published by the Luxembourg Tax Administration applicable for the sale of property (700F). To assess a future sale, this amount is extrapolated.

Capital Gain Taxation

Model

Calculating the capital gain taxation will depend on the type of gain (speculative or long-term gain), of the tax reliefs you are entitled to, as well as your net taxable income. We invite you to consult the Nexvia Tax smart card if you wish to have more information on the capital gain taxation.

Assumptions

In the case that you indicated selling a property acquired by way of inheritance, our calculator automatically considers that the property meets the conditions to benefit from the Inheritance Deduction of € 75 000. We invite you to read our information point carefully (i) to ensure all required conditions are satisfied.

The Capital gain deduction corresponds to the amount you can deduce from your capital gain from which you should deduce any amount consumed on a capital gain.

The determination of the taxation is calculated with the current taxation rates applicable since the 1st of January 2018 (amended as part of the fiscal reform). Our calculator uses the effective rates which include the additional taxation for employment funds. The taxation is calculated on the basis of your taxable income as indicated by you in our tool.