Tax on real estate capital gains in Luxembourg
Tax on real estate capital gains in Luxembourg
1. The sale or exchange of the main residence is exempt from capital gains tax.
The taxpayer's residence is considered as the main residence when the home is either occupied by the taxpayer at the time of the sale or exchange, or the sale or exchange is made no later than December 31 of the year. following the move.
- the taxpayer occupied it following its acquisition or its completion, or;
- the taxpayer has occupied it for at least a period of 5 years preceding the sale or exchange, or;
- the sale or exchange was made for family reasons or is related to the profession of the taxpayer, his spouse or his partner.
2. When the sale or exchange of the building has taken place less than two years after the acquisition:
The income made is called speculative profit and is taxed according to the level of taxable annual income of the taxpayer and his family situation, the marginal tax rate is a maximum of 42%.
3. When the sale or exchange of the building has taken place more than two years after the acquisition:
The income made is called capital gain on disposal and is taxed at 21% half global rate.
4. The income obtained following the capital gain on the sale benefits from a ten-year allowance of 50,000 euros (100,000 euros if the spouses or partners are taxed collectively).
For more information, go directly to the site:
https://guichet.public.lu/fr/citoyens/logement/vente/plus-values/declarer-vente-bien-immobilier.html
