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Useful info - Useful info for BUYERS !
- Capital gains tax - the property is owned by a company (or other legal structure)
The capital gain is added to the taxable income of the company, if re-invested within two years after the realisation, the tax is paid over the depreciation of the new investment (33 years).
- Capital gains tax - the property is owned by a person
There is no capital gains tax to be paid if you personally own the property and have kept it for a period of at least 5 years. If you sell it before the period of 5 years, you are only exempt if the property is your personal residence (and a few other exception such as heritage, expropriation or owned by under-aged person)
Starting date is the date of the acquisition deed or in case of a new construction, date of occupation or letting.
The rate is 16,5% calculated on the difference between acquisitions and sales price. For the calculation of the capital gains tax, the acquisition costs (such as notary costs) are added to the acquisition price OR with a fixed cost percentage of 25%. The acquisition price, increased with 25%, may be raised as well with 5% for each completed year since the date of acquisition. If the Registration office declares a higher value to the property for the registration (under-valuation), this value will be taken into consideration as acquisition price.
- Transfer tax & notary fee
With 12,5% the transfer tax on freehold properties is one the highest in Europe. In Flanders a lower transfer tax of 10% is applicated.
With the sale of new or renovated buildings the registration tax is only due over the value of the land, the building itself will be sold under VAT regime.
The notary fee is usually 0,06% to 1,15% depending of the sales price.
- Transforming a shop to a residence
Often small urban properties with too small retail outlets remain vacant. The Flemish government wants to deal with this problem and has decided to create a tax benefit. If an owner of a property with a retail outlet transforms it to a 100% residential property, he will pay during 3 years NO real estate tax.
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