What is the capital gains tax when selling?
For a private person it is 25%. Unfortunately no costs of redecoration (painting, new tiles), property management, or accounting can be offset. Only expenses of lawyer, broker agent, the stamp duty, advertisement costs, and value-increasing renovations (expansion, new heating system) may be deducted from the profit for a private person. Make sure you keep the invoices. Bills, receipts of payment are not enough.
No capital gains tax after 5 years if ownership for private persons.
- 1st year after purchase: 100% of profit taxed @25%
- 2nd year after purchase: 90% of profit taxed @25%
- 3rd year after purchase: 60% of profit taxed @25%
- 4th year after purchase: 30% of profit taxed @25%
- 5th year after purchase – no capital gains tax
For a company the corporate tax on profits is 19%. The advantage here is related expenses and utility costs can all be offset against income.
