Property capital gain — Luxembourg 2025–2026

Purchase and sale

In 2026, private sales held for no more than five years are speculative; longer holdings may qualify for half the overall tax rate. In 2025, the two-year threshold and quarter overall rate apply through 30 June, and from 1 July to 30 September if the preliminary agreement was registered with AED by 30 June. Exact dates matter.

Simulation of a private property sale by a resident in tax class 1 or 2. Enter your ownership share only, or the shares of the jointly assessed household. Use the deed dates and effective transfer of ownership.

Taxable basis

Use the price, eligible costs and date of the previous holder’s last purchase for consideration. The declared inheritance or gift value does not replace that price.

Actual documented costs without double deductions. This screen accepts one group of improvements; combine only expenses from the same year. Purchase costs and improvements are revalued separately, except for speculative gains.

Tax circumstances

For long-term sales, the remaining ten-year allowance of €50,000 (€100,000 for joint assessment) follows other eligible deductions and the eligible inheritance allowance. It does not apply to speculative gains. Income tax depends on ordinary income and tax class; a universal flat rate would be misleading.

Direct-line inheritance of the parents’ last principal home: personal one-time limit of €75,000. Joint assessment permits €75,000 per spouse on their own eligible inherited share; €150,000 only if both personally qualify.

Calling a property your principal home is insufficient. Check actual occupation, departure date and assimilation conditions in the ACD guide.

Tax and contributions

For speculative gains, the employment fund is calculated by tariff difference. For disposal gains it is a provision of 7% of income tax, or a 7–9% range above €150,000 (class 1) / €300,000 (class 2). Allocation to extraordinary income must be settled with the annual tax assessment; this provision is not a final tax assessment.

Sale proceeds are not profit: the purchase price is not deducted here. Outstanding debt, unentered mortgage-release fees and other commitments remain payable.

One transaction and no other gains or losses to offset. Annual speculative gains below €500 are exempt. Reinvestment relief, share sales, business assets, non-residents, class 1a, extraordinary deductions under article 131(3) and minimum bases for old acquisitions require separate analysis. The sale must still be declared even if exempt.